Phakama to lose E500 000 monthly, with SAPPI closure

MBABANE – Phakama Investments (PTY) Ltd will lose monthly income of about E500 000 per month when SAPPI Usuthu closes down next year.

The company, situated in Malkerns, provides transportation services to SAPPI.
According to Operations Manager Senzo Mkhabela, they had already received a notice from SAPPI, which terminates their contract.
“We have been given a three-month notice that terminates our contract with the company; the last day of providing our service is January 31, 2010,” he said.

When asked how much business they were going to lose, Mkhabela said; “We have about five buses and four trucks that were servicing SAPPI. The gross income we get per month is around E0.5 million.”
Mkhabela added that the company’s intended closure would adversely affect Phakama Investments.
“Right now, I think the buses will be grounded but we are looking at other businesses in the meantime,” he said.
Last week the Swaziland Electricity Company (SEC) estimated that they stand to lose about E1.3 million per month in the event SAPPI closes down early next year.

The SEC said they had a client base of about 1 000 in the manufacturing industry that contributed about 70 per cent of their revenue. Meanwhile, the Swaziland Railway also announced two weeks ago that they could lose up to E7 million per year in the event the company closes down early next year.
The parastatal also noted that they lost at least E6.5 million worth of business when Mondi Forest lost its timber through the raging forest fire.