Economic Mysery Putting Investors Off – Datlabs
(The Source) – Pharmaceutical manufacturer and distributor Datlabs says it is failing to attract foreign investment for its intravenous fluids factory that has been idle since 2006 because of uncertainty over the country’s economic direction.
The company requires $2 million to refurbish the old plant and buy new machinery for the factory and opted to seek international partners rather than raise cash internally.
“So far, most of the investors we have talked to complain about the uncertainty in the economy. They are reluctant to put up the money,” Datlabs chief executive officer, Todd Moyo told The Source on Monday.
Datlabs also wants to set up a factory to manufacture ointments, syrups and tablets at a cost of $5 million and requires a further $2.5 million for operations, including settling debts.
The company is one of the largest pharmaceutical manufacturers in the country and shut down its intravenous fluids manufacturing factory in 2006 partly due to government’s failure to pay a $200, 000 debts, which remains outstanding to this day.
Moyo, however, said the company will continue discussions with the investors, whom he refused to name for fear of jeopardising negotiations.