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LOAN DEFAULTERS AFFECTING PRODUCTION

16/12/2022 08:23:00 Mhlengi Magongo

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Big Bend - The cultivation and maintenance of positive supplier and buyer relationships remain an integral factor in conducting mutually beneficial business transactions.

This was evident as Ubombo Sugar engaged over 90 of her suppliers and contractors at Mayaluka Hall during the company’s Suppliers’ Day event in an effort to allow for the sharing of critical information, ideas and solutions associated with the company’s procurement and tendering systems and processes.

The event, facilitated by the company’s Procurement Department unpacked a variety of supply chain issues ranging from expected supplier performance, tendering systems and procedures, guidelines to adhere to and even the stages and processes followed by Ubombo Sugar in the awarding of tenders.

Ubombo Sugar Head of Finance Leonard Ndzimandze in his remarks acknowledged that the previous two years have been challenging due to the impact of the COVID-19 pandemic on global trade and supply chains, and these challenges presented an opportunity for the company to tailor more convenient systems and methods to ensure pipelines of supply are kept open in the midst of the pandemic.

Ndzimandze emphasised that Ubombo Sugar conforms to a set of policies and regulations that guide their procurement and tendering procedures, which include its Anti-Bribery & Corruption Policy, among others, to curb ill-practices in the procurement space given how in the past, the company experienced cases with vendors failing to meet certain standards of trade as required by Ubombo Sugar.

“As a company that grows cane, produces sugar and electricity we are looking to diversify our portfolio as a brand in the near future, and we are particularly interested in placing our focus on environmental, social and governance (ESG) initiatives whereby the company’s suppliers, vendors and contractors are an essential instrument in helping us meet our ESG agenda,” he shared.

Crucial

Present at the Suppliers’ Day were representatives of the Ministry of Labour and Social Security and the Construction Industry Council (CIC), who both reiterated how crucial it was for suppliers of goods and services to comply with statutory requirements which are meant to protect both the enterprise, the people who worked for them and all stakeholders.

The company’s procurement team shared presentations touching on e-sourcing methods utilised by the entity, delivery guidelines and expected supplier performance to which much emphasis was made on avoiding deviance from standard trading terms and conditions among other critical issues.

In a meeting with the Prime Minister, Cleopas Dlamini, in October, AB Sugar Chief Executive Officer (CEO) Paul Kenward added that they aim to develop the sugar industry locally and create more jobs. He said they have made investment amounting to over E1 billion in Eswatini to support SCG as well as the surrounding communities within the reach of Ubombo.

“We also contribute to the electricity grid as a way of supporting local businesses and we aim to increase the figures with time,” he said. The CEO also mentioned that there were projects in the pipeline which aimed at expanding the market as well as assist the economy of Eswatini. He further mentioned that they were open to other investments that the country may wish to engage or need assistance.

Ubombo Sugar Managing Director (MD) Muzi Siyaya added that they currently aimed to expand production to avail more opportunities. Siyaya said one of the challenges that were affecting their growth was SCG not coping and they formed a bigger part of production. He said a majority of cane growers were struggling financially, despite the assistance of government through EswatiniBank and First Finance among other contributors.

“Small cane growers have a lot of defaults with financial institutions and this does not only affect their jobs but lives as well,” he said. Siyaya added that they have a wing within Ubombo Sugar that caters for SCG and they further subsidies them with fertiliser and other chemicals.