Wilmar Africa, the producer of Frytol, says it is compelled to shut down its production plant in the country due to low sales.
In a letter to the general secretary of the Food and Allied Workers Union (FAWU), the company listed several challenges hindering its operations in the country.
“Firstly, since the introduction of the government’s duty discount on benchmark value, there has been a huge increase in cheap imported products into the country. This has made it very difficult for us to sell in the local market because imported oils from Asia are selling far cheaper than our product…”
“…to make matters worse, our export market, which has been complementing our local sales, has also been hit by non-availability of vessels to transport the product to our main export market-Senegal due to the COVID situation. These compounded problems resulted in our worse sales in December 2021 and the low sales continuing into January 2022,” the company said.
“With no space for storage due to low sales, we are compelled to take a temporary shutdown of the plant and monitor the situation. If the situation persists, we shall be faced with the imminent closure of the business.”
Read the full letter below:
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