Local companies drive industrialisation

Local companies have emerged as key drivers of Zimbabwe’s industrialisation agenda, leveraging innovation and community empowerment to spearhead economic growth.

This was a key highlight during a tour of companies by delegates who attended the 7th SADC Industrialisation Week, which ended yesterday.

Delegates visited Olivine Industries, Delta Corporation, Dairibord Zimbabwe Limited, National Foods, Seed Co, Zimplats, Dinson Iron and Steel Company, Champion Foods, Irvine’s, Dendairy, as well as the First Family’s Precabe Farm at the invitation of President Mnangagwa.

They were impressed by the resilience displayed by the businesses, defying economic challenges to create jobs, boost exports and contribute significantly to national GDP.

Mr Joao Junior Alguineiro from Mozambique said the progress was in tandem with the SADC industrialisation agenda.

“We had this fantastic tour in which we had the opportunity to see what Zimbabwe is doing,” he said.

“We also saw the huge investments that have been made by the companies here in Zimbabwe, which also constitute an opportunity for other members of the region to exchange products, exchange experiences, in order to boost and foster this initiative of industrialisation.

“Zimbabwe is showing what should be done and other countries can benefit from it.”

Commenting about Seed Co, Mrs Theresa Sipiho from the Namibia Investment Promotion and Development Board said: “The plant considers local farmers, they source from local farmers so that local farmers can find a market.”

Mr Reinaldo Mendiata, a Mozambican who is part of the SADC Secretariat, commended Seed Co for championing research and development facilities which are adaptable to climate change.

Dinson Iron and Steel Company chairman Mr Benson Xu explained the company’s role in Zimbabwe’s industrialisation.

“It is a national project which we are developing in this place. So we get all the raw materials from other places and put it into the manufacturing process here and add value to have our final product,” he said.

Mr Benson said the steel project was a hub industrialisation, adding that it could deliver President Mnangagwa’s vision of leaving no place and no one behind.

Mr Benson said Dinson was fortunate that the steel project got Government support.

Deputy Chief Secretary for Policy Analysis, Coordination and Development Planning in the Office of the President and Cabinet Mr Willard Manungo, thanked Dinson for championing the industrialisation agenda.

“I would like to say to all the colleagues from our SADC region that we are here as Zimbabwe to share with you, to be encouraged by you and to also learn from you, in terms of how we can perfect our own obligations in terms of moving forward with the SADC agenda,” said Mr Manungo.

Businessman Dr Nigel Chanakira said the steel project would go a long way in furthering Zimbabwe’s industrialisation agenda.

He said the steel project, which has a US$30 billion export revenue potential, will bring further development amid plans to put up power projects for wind, solar, as well as the captive power generation already being produced.

Dairibord chief operating officer Mr Godfrey Machanzi said Government support helped them to be first parastatal to successfully commercialise.

“We acquired a business in Malawi in 1998 and the journey of growth started from there. Government now has zero shareholding and we are one of the successes of privatisation of business.

“We now have over 500 farmers that we contract to bring us milk. We are the largest milk processor in Zimbabwe and we carry about 36 percent of the milk that is processed. There are 15 other milk processors but they are smaller,” he said.

At Delta Beverages, the delegates were told how the company had grown to employ more than 5 000 workers in Zimbabwe, South Africa and Zambia.

Ms Patricia Murambinda, Delta general manager corporate affairs, said: “We believe in women empowerment as you can see most of our executives are women.

“About 33 percent of managers are women. So we really drive the diversity, equity and inclusion agenda. We also continuously innovate our products.

“We are moving with the world trends and even our equipment, the machines that you are going to see are world class.”

National Foods chief executive officer Mr Mike Lashbrook said his company was strengthening value addition to maximise on its investments.

“In the last few years we started looking at how we can value-add those products so our maize meal now goes into corn snacks; we have launched a breakfast cereal.

“With flour, we have installed a pasta plant in the last few years and we have put in a biscuit plant,” he said.

Olivine Industries corporate affairs executive Mr Sylvester Dendere said new investors, Surface Wilmar, have enabled them to start refurbishing their factory.

“We just refurbished the margarine plant, which is now producing up to six tonnes an hour. We also refurbished the soap making plants, which are now producing up to six tonnes an hour. The products are now readily available on the market,” he said.

Champions Foods executive director, Mr Patrick Chikosha, said the visit by the delegates was good for business.

In Mhondo-Ngezi, the delegates toured Zimplats to appreciate the group’ s extraction and value addition processes.

The delegates led by Industry and Commerce Deputy Minister Raj Modi, expressed admiration for Zimplats’ corporate social responsibility and community empowerment programmes where US$69 million has so far been injected to support various start-ups.

The delegation toured the newly commissioned concentrator, the Mine Support Solutions, which specialises in the production of bolts and steel bars used in supporting underground mines and the 35MW Zimplats Solar Park.

At Mine Support Solutions, the delegation was informed that the company was producing 80 000 mechanical bolts with Zimplats taking about 55 000 of the bolts.

The plant has the capacity to supply the country and the region.

Deputy Minister Modi said: “We have seen here a constructive model where community companies are formed with the support of Zimplats through their community share ownership.”

“This is different from other companies that are only interested in mining and getting profits. Communities here are benefitting and this is commendable.”

Zimplats managing director Dr Stanley Segula said they were not just a Platinum Group of Metals (PGMs) miner but they also support communities.

“Our story is of creating a better future for everyone including the community and the country. We want to be known as the biggest value creator in the country and we believe we are playing that game fairly well.”

Dr Segula said the company injects money into community initiatives as minority shareholders before relinquishing them to the community once the company is fully established and viable to stand alone.

So far 23 companies have been supported to grow with Zimplats as the major client.-herald