Datlabs needs $5 million to recapitalise

Datlabs needs $5 million to recapitalise
Published: 13 February 2014
ZIMBABWE imports medicinal products such as drips yet it could manufacture them locally but due to lack of capital, manufacturing plants are lying idle.

Pharmaceuticals and Personal Care Products Manufacturer, Datlabs Chief Executive Officer, Todd Moyo, told an industrialist and diplomat tour delegation led by the Zimbabwe National Chamber of Commerce that of its two basic factories, the other capable of manufacturing medical drips was lying idle.

"We import drips in South Africa yet we can make them here. The plant is down. There is machinery to be bought. The other machinery is old and due to certain pharmaceutical protocol, if machines reach a certain age even if still operational they should be replaced in order to produce quality medicine. The factory that produced medical drips is able to supply the whole country and the SADC region," he said.

Moyo explained the production process in making drips, saying the liquid inside the drips consisted of water and certain minerals yet water could be found locally.

".. but we import drips. That water comes from outside the country when we can do that here,"he said using a wistful tone.

The Datlabs boss also complained about government debts, which he said had been unpaid since 2006.

"This has made it difficult to resuscitate operations. For example we are still owed $200 000 since 2006. We have had talks with ministries of Finance and Health but seven years is too long. It is difficult for an investor to come in because he will automatically carry over that debt," he said.

Moyo noted the pharmaceutical company required $5 million to fully operationalise.

"We are also talking to Kenya and Ghana that once we start producing we can export our products there. Locally, we supply government hospitals, institutions and NatPharm."

Datlabs had dropped its manufacturing capacity and is now operating at 40 percent compared to last year’s 60 percent.

"Our target depends on the demand from the market. We hope to reach 80 percent if we push our latest product Camphor Care on to the market. Due to the liquidation crisis customers fail to pay in time and we have to gage our sales. This limits our market because we are not operating fully," Moyo said.

The Datlabs CEO also charged about how the Zimbabwe Electricity Supply Authority (ZESA) load shedding programme was affecting production.

"Our production goes through several cycles, each very sensitive, when ZESA switches off power, we throw away the whole consignment. Insurance does not even cover it. We always ask ZESA to alert us at least an hour before so we can prepare but there are young men there who just switch off," he ended in jest.

- Lulu Brenda Harris I Radio Dialogue
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