National Foods Limited, Zimbabwe’s largest food manufacturer, has bemoaned a severe shortage of foreign currency in the official market, which is hindering business operations.
In announcing the company’s half-year results, NatFoods chairman Edwin Manikai lamented the scarcity of US dollars on the official market and called for urgent measures to promote greater acceptance of the ZiG (ZWG) within the market. Said Manikai:
<blockquote>
The final quarter of the year under review saw currency reform measures instituted by the monetary authorities through the introduction of a new structured currency, the Zimbabwe Gold (ZWG).
Notwithstanding these progressive steps to broaden the multi-currency basket, market liquidity in the form of access to local debt facilities and foreign exchange via the WBWS platform remains severely constrained…
Whilst the Group welcomes the addition of the ZWG to the multi-currency basket, the success of this initiative will be dependent on further supportive measures, which amongst other things, will allow users to seamlessly interchange between currencies; this will naturally result in greater market acceptance, and use, of the new local currency.
</blockquote>
The ZiG, introduced on April 5, 2024, marks Zimbabwe’s sixth attempt to establish a viable local currency in the past 15 years. It is backed by gold, precious minerals, and foreign currency reserves held by the central bank.
Initially, it maintained a stable exchange rate of US$1: ZiG 13.86 for the first four months. However, the ZiG has since weakened on the parallel market, prompting the central bank to devalue the currency by 43% recently to address the disparity.
Industry lobby groups have cited limited access to foreign currency in the Willing Buyer, Willing Seller market as a key factor contributing to the exchange rate pressures.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

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National Foods Limited, which is a big food company in Zimbabwe, is upset because they don't have enough foreign currency to run their business. They are asking for more support for their local currency, the ZiG, to be accepted in the market. The ZiG was introduced to help with currency issues in the country, but it has started to lose its value. This is causing problems for companies who need foreign currency to operate. The government has devalued the ZiG to try to fix this problem. Other industry groups are also facing similar issues with foreign currency shortages.

National Foods Decries Forex Shortages On Formal Market

National Foods, a local food product manufacturer, lost over US$6 million to cybercriminals who hacked into its computer systems and accessed credentials to transfer funds from its bank accounts.
The suspects, including two foreigners, used a phishing scam to send fraudulent emails to the company’s finance manager, purportedly from a South African financial institution.
Upon opening the email, Natfoods’ computer system was corrupted, giving the fraudsters access to the company’s financial transactions. The scammers then used the finance administrator’s credentials to instruct the company’s banks to deposit money into their own accounts in South Africa. This is one of the biggest cybercrimes ever reported in the country.
The Zimbabwe Republic Police spokesperson, Assistant Commissioner Paul Nyathi, confirmed the case. He said:
<blockquote>
I can confirm that we have that case. I will have the full details by Monday.
</blockquote>
What Happened:
According to sources close to the case, local banks received what they believed were legitimate instructions to transfer funds from Natfoods. Funds were transferred into two South African banks, FNB and First Rand Bank, on multiple occasions between September and October of last year.
The fraudulent activity was only discovered during an internal financial audit in November. An investigation was launched, revealing that Natfoods’ computer system had been compromised. The investigation looked into transactions between Natfoods and two local banks that had worked with the company. 
Sources have reported that investigations show that the computer system of the company was hacked through the finance manager’s email.
The fraudulent activity went unnoticed until one of the banks raised concerns regarding an overdraft, revealing that funds had been transferred to South African banks. The matter was reported to the CID Commercial Crimes Department, and investigations are ongoing.
The scammers have withdrawn approximately US$3.5 million out of the total US$6 million that was taken. A High Court order in South Africa was obtained to freeze bank accounts containing part of the funds pending investigations.
Who are the Cybercriminals:
The Asset Forfeiture Unit of the National Prosecuting Authority, with assistance from South African authorities, has obtained a seizure order for properties suspected to have been bought using proceeds of the crime. The South African authorities have seized a fleet of vehicles and a mansion in Johannesburg.
Two individuals, a Congolese and a Ghanaian, have been identified as the masterminds behind the crime, with leads indicating the involvement of Zimbabwean nationals.
An investigating team led by a high-ranking official from the NPA will leave for South Africa today to conduct further inquiries into the case, working with the South African police.
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National Foods Loses US$6m To Cybercriminals In Zimbabwe

Two police officers were arrested recently on allegations of stealing US$158 000 from a suspect.
Addmore Musiza (34) and Tafara Machokoto (41) appeared before Harare magistrate Stanford Mambanje on Wednesday facing criminal abuse of office charges.
They were remanded in custody.
Prosecutors said that on 03 March 2023, at around 7 PM, Musiza and Machokoto who are stationed at CID Stores and Business, were assigned to investigate a theft case at National Foods.
The two interviewed the suspect, Edward Davai Mudowaye who had been arrested for stealing US$158 000 stolen from, National Foods, Aspindale, where he was employed.
Mudowaya said that he had given the money to Susan Jiri for safekeeping.
The suspect then led the two to Block 7 836 Matapi Flats, Mbare and recovered the loot from Jiri.
However, they did not bring back the cash as recovered property but instead shared it among themselves.
It is further alleged that the two later took Mudowaya to court claiming that they did not recover anything from him.
It is alleged that CID Homicide detectives received information about the offence and arrested the duo.
Musiza was allegedly found in possession of US$56 000 which he had buried in a maize field about 400 metres from his house.
Machokoto was found in possession of US$22 000 which he had given to his aunt in Aspindale Park, Harare.
Another US$3000 was recovered from Jiri.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Two Police Officers Steal US$158 000 From Thief

Two National Foods Limited workers have been arrested for stealing US$162k from the company’s safe after they allegedly tampered with security cameras.
The two are Edward Davirai Mudowaya (34), who was deployed at National Foods by Safeguard Security, and Charlotte Tarisai Munetsi (36), a debtor’s clerk.
They appeared before Harare magistrate Evelyn Mashavakure on Monday facing theft charges.
They were remanded until today for bail application, according to <a href="https://www.newsday.co.zw/local-news/article/200009388/natfoods-loses-us162k-to-internal-burglars">NewsDay</a>. 
National Foods is being represented in the matter by the company’s loss control officer, Bhoki Nyambo.
What happened:
Allegations are that last Tuesday, Mudowaya connived with Munetsi to leave a cash safe in an office drawer after knocking off duty.
Mudowaya also allegedly did not activate the security alarm of her office door, despite having left US$304 093 inside the safe.
In the wee hours of the following morning, Mudowaya allegedly tampered with the security system and stopped all cameras from recording movements during which time the money went missing.
At around 7:30 am, the complainant received a phone call from one of the CCTV operators saying the debtors clerk and cashier’s office door was open and that the safe was also open.
The complainant proceeded to the office and noticed some signs of forced entry at the grill gate lock to the office.
A police report was then filed.
Upon arrival, police noticed bundles of cash in the safe and on the floor.
The notes were counted and they totalled US$142 053. The cashier claimed that she had locked her doors when she left and that there was US$304 093 in the safe.
This meant the duo stole US$162 040.
Further investigations led to the arrest of the duo.
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Workers Arrested For Stealing US$162k From National Foods

National Foods (Natfoods), an agro-industrial company, claims to have committed US$12 million to contract farming for the growing season of 2022–2023.
The group’s arm Paperhole Investments (PHI) Commodities, which is in charge of growing crops like sorghum, soybeans, and maize, manages the contract system.
To make up for shortages at home, the firm also buys grain from nearby farmers and imports, <a href="https://www.herald.co.zw/natfoods-invests-us12m-in-contract-farming/">The Herald</a> reported.
Michael Lashbrook, the chief executive of Natfoods, said the company was making a variety of other investments to increase the capacity and availability of raw materials. He said:
<blockquote>
 The total hectarage for the current summer season under the A Growth/PHI scheme for which National Foods provides an off-take is 4 250 hectares (of) maize, 7 500 hectares (of) soya, and 760 hectares (of) sorghum.
The total investment made by A Growth/PHI under the scheme is around US$12 million.
</blockquote>
The operations of NatFoods include pre-packaging, the sale of dry goods, and the milling of corn and wheat. Additionally, the organisation produces stock feeds.
The firm planted about 12,000 hectares of wheat during the winter of 2022.
In addition, delivery of 40 000 tonnes of soybeans and maize from the previous agricultural season was made.
The company is currently engaged in a phased three-year upgrade of the Aspindale stockfeed plant, which commenced in 2022.
Lashbrok pointed out that the construction of Bulawayo’s new flour mill, which will be put into operation early next year, had also advanced.
He said the installation of the new flour mill is proceeding nicely, and it is still anticipated that it will be put into operation in March 2023.
In a recent update, National Foods said it will spend $30 million on new initiatives that would result in fewer imports of particular goods.
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National Foods Invests US$12 million To Contract Farming For The 2022–2023 Season

The Reserve Bank of Zimbabwe (RBZ) will pay National Foods Limited’s legacy debt amounting to $54,9 million owed to one of its major grain suppliers.
In a statement accompanying the company’s financial results for the half year period ended 31 December 2018, group chairman Mr Todd Moyo said the company had reached an agreement with the RBZ. Moyo said:
<blockquote>During the period an agreement was reached between the Reserve Bank of Zimbabwe (RBZ) and the group’s major grain supplier wherein the RBZ assumed the group’s legacy debt to its supplier amounting to $54,9 million. National Foods settled the full amount locally to the Reserve Bank, resulting in a reduction in its creditors.</blockquote>
More: <a href="https://www.chronicle.co.zw/nat-foods-strikes-deal-rbz-to-assume-milling-firms-549million-debt/">Chronicle</a>

RBZ To Pay National Foods' $54,9 Million Debt

National Foods has warned its customers that it is on the verge of shutting down very soon as its flout stocks dwindle due to the acute unavailability of foreign currency to import wheat. National Foods said that its Harare and Bulawayo mills will shut down on Wednesday December 5 and will only be reopened when the situation allows. Read part of the letter below
 
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Bread Shortages Loom As National Foods Shuts Down, Cites Exhausted Wheat Stocks

After a tour on Thursday of Pure Oil, Trade Kings and Chloride, head of operations, Ron Musiiwa, revealed that Pure Oil Industries which is a 40 percent associate company of National Foods Limited, has asked Government to provide 150 000 hectares of farmland to enable the company to produce soya beans. The company said it had identified farmers to be supported under contract farming, with a total 2 000 ha expected to be put under the soya bean crop this season. An estimated $2 million will be invested in equipping and capacitating contracted farmers.
Pure Oil Industries accounts for 70 percent of Zimbabwe’s monthly cooking oil requirements amounting to 10 million litres, but relies on crude imports to meet its production needs. The company which is operating at 40 percent of crushing capacity and 85 percent processing potential, commands the largest local market for cooking oil at 60 percent. Cooking oil imports commanded 85 percent of the market before their share drastically fell after Government introduced import tariffs regimes and import duties.
More:<a href="http://www.herald.co.zw/pure-oil-requests-farmland-from-govt/">Herald</a>

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