Management shake-up to drive efficiency: BAT

The recent senior management shake-up at British American Tobacco Zimbabwe (BAT) signals a comprehensive business re-organisation to deliver greater efficiency.

Zimbabwe’s largest cigarette-making company said the changes in top leadership were an integral component of a broader strategic realignment effort designed to cultivate a “future-fit enterprise” capable of navigating an increasingly dynamic market environment.

BAT has announced the resignation of Mr Kenneth Gitonga as managing director, effective December 31, a role he assumed in March, 2024.

During his tenure, Mr Gitonga also served as the general manager for the South African market.

He will be replaced by Ms Rumbidzai Hondora, head of marketing deployment for BAT East and Southern Africa markets in Kenya.

Ms Lucy Irungu steps down as finance director with effect from December 31, a position she has held since March 2024. Mr Tumisang Lebogang will take over as the new finance director.

Mr Lebogang had served as the corporate finance manager for BAT Zimbabwe, where he oversaw strategic and financial planning, reporting and capital management.

“Recent changes in senior leadership at BAT Zimbabwe form part of a broader business reorganisation aimed at building a more efficient and agile organisation.

“These adjustments are designed to support the next phase of our strategy and ensure BAT Zimbabwe is well-positioned to accelerate its transformation agenda,” BAT said in an emailed response.

Over the past 18 months, BAT has implemented a series of targeted strategic initiatives designed to reinforce its business resilience and ensure sustained value delivery for all stakeholders.

The core of this transformation focused on enhancing consumer value and operational efficiency.

A key commercial initiative was the implementation of dual currency billing and smart pricing strategies, aimed at optimising value for consumers in a dynamic economic environment.

Simultaneously, the company strengthened its market execution by expanding its route-to-consumer.

This included enhanced distributor partnerships and significantly expanded retail coverage, with a strategic focus on previously underserved peri-urban and rural markets. Further, BAT optimised its product portfolio and reinforcing brand equity through consumer-focused interventions.

Operational efficiency was a major pillar of the recent strategic period. BAT continued its commitment to business simplification, prioritising process automation and supply chain efficiencies.

BAT is now setting the stage for its next phase of “growth” by building what it terms a “future-fit enterprise.”

The transformation aims to build on the established momentum and “turbo charge” the company’s strategic evolution, positioning it for long-term growth in an increasingly dynamic environment.

It will focus on driving volume recovery by targeting the value segment, enhancing operational efficiency through supply chain optimisation, and engaging policymakers to ensure a supportive regulatory environment.

“The business is resilient and confident in its current strategy, despite operating in a dynamic environment that, while supported by steady inflation and exchange rate stability, continues to present challenges such as liquidity constraints, elevated borrowing costs and persistent power outages affecting industrial productivity,” said BAT.

BAT has operated in the country for more than 80 years. Zimbabwe’s cigarette manufacturing sector has been severely impacted by operational constraints, leading to a near 50 percent plummet in output for 2024.-herald

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