Food company on expansion drive despite economic headwinds

LOCAL food company, Tammy’s Classic Foods, is pushing ahead with expansion plans despite facing significant operational challenges, an executive has said.

Founded in 2007, the company has evolved from a modest backyard kitchen in Dzivaresekwa into a registered SME supplying peanut butter, roasted groundnuts, popped maize (maputi) and sesame oil to retail shops, schools, and informal traders across Harare.

The company was initially a micro-enterprise producing traditional snacks using basic home tools, which formalised operations in 2013.

It invested in semi-automated machines and hired a small team, allowing it to improve product quality and meet increasing demand.

“Our goal is to modernise traditional snacks. We want to see Zimbabwean products on shelves in Botswana, Zambia and beyond,” Tammy’s founder and chief executive officer, Ruvimbo Vambe, told NewsDay Business.

Advertisements
She hopes to build a solar-powered factory and expand partnerships with rural farmers.

“Loadshedding has become one of our biggest enemies,” Vambe bemoaned.

“When there’s no electricity for eight hours, our machines are idle and we miss delivery deadlines.”

While the company has invested in backup systems, the high cost of fuel and generator maintenance continues to eat into profits.

“Compounding the challenge is a poor harvest, which has reduced the availability of key ingredients like maize and groundnuts.”

Tammy’s sources most of its raw materials from rural farmers in Mutoko, Murehwa and Seke.

“This year’s harvest was poor. Prices have shot up, and sometimes we travel long distances just to get the right quality peanuts,” Vambe said.

“By the time we buy, the exchange rate has already shifted, so we are constantly recalculating.”

To cope with these hurdles, Tammy’s team has adopted a flexible, all-hands-on-deck approach.

“We’ve learned to work under pressure. If power returns at 6pm, we will stay late to make up for lost time. Everyone chips in from packing to deliveries,” Vambe said.

She also bemoaned the challenges in accessing loans from financial institutions.

“Most banks ask for collateral we just don’t have. Some microfinance institutions charge rates that are simply not sustainable for a food business,” Vambe said.

The company is now seeking partnerships with investors or development funds that understand the realities of operating in Zimbabwe and are aligned with its long-term vision.

On the regulatory front, Vambe said compliance with food safety standards was essential but often costly and slow.

“We try to do everything by the book. But you can wait months for one certificate, and every delay means missed opportunities,” she said.

“We need regulators to see us as partners, not just applicants.”

She urged the digitisation of some regulatory processes and the creation of SME-friendly support desks at institutions such as the Zimbabwe Revenue Authority, Environmental Management Agency and the Ministry of Industry and Commerce.

Tammy’s employs 10 full-time staff and several part-time workers, most of whom are trained in-house.-newsda