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Bulawayo Bureau—
AT least 300 jobs will be created in Bulawayo when sweets and biscuits maker Arenel opens a new snacks division this month, while Choppies Zimbabwe is investing in water purification, soap making and packaging, which would also add more employment opportunities. This emerged during a tour of the two Bulawayo-headquartered companies by Acting President Phelekezela Mphoko yesterday.
The Acting President, who is in the city on a three-day Zim-Asset familiarisation tour, said such renewed investment interest and expansion of existing businesses was a sign that Bulawayo’s economy was on the mend.
Arenel has invested more than $6 million in expansion projects since dollarisation in 2009 and has a total of 581 workers. Yesterday company representatives said the new snacks plant will be operational before the end of this month. Last year the firm commissioned a $2,5 million mahewu (traditional drink) plant.
The company, however, complained over the flooding of the market with imports and the changes in the value added tax regulations, which was eroding its income and threatening its profitability.
Barry Wolhurther, the general manager for the mahewu unit reported that the company has excess stock of products, which have not been absorbed by the market.
The company has since decided to do a temporary shutdown for maintenance work.
Acting President Mphoko, who was accompanied by ministers Eunice Nomthandazo Moyo and Tabetha Kanengoni-Malinga and top Government officials, visited the new plant, which has already been equipped with state of the art machinery.
He also conducted a tour of the closed BSI Steel factory where the Choppies Zimbabwe’s water purification and soap making company will be established. It is set to be operational in two weeks’ time.
BSI ceased operations in Bulawayo a few years ago before relocating to Harare citing lack of business.
Choppies Zimbabwe director Siqokoqela Mphoko said the new processing arm for the retail giant will run under Nestrail Systems subsidiary.
He said the water plant would create 20 to 30 jobs with about 100 jobs to be created in the powdered soap and dishwashing unit. The unit would include a modern car washing facility that would recruit 15 people.
Siqokoqela also said more jobs will be created during the construction of a mega distribution centre for Choppies in the city.
The local authority has already granted the firm the nod to construct the distribution centre on a three hectare piece of land in Thorngrove suburb.
An additional 120 jobs would be created when the company sets up a rice packaging plant in Mutare.
“All these projects must be implemented this year,” said Siqokoqela.
On Wednesday the Acting President visited United Refineries Limited, an agro-processing firm in Kelvin, which has also defied the odds having come out of the woods to operate competitively.
He also toured Datlabs, a pharmaceutical firm as well as the limping Cold Storage Company.
“There’s a lot of talk that Bulawayo is dead and that Zimbabwe cannot attract investment. But what we’ve seen here is proof that investors and companies have confidence in this city,” said Acting President Mphoko.
“While some people have closed shop in Bulawayo and relocated to Harare, South Africa, Botswana or Zambia, serious investors are coming in to take over.
This shows that it is a myth to claim that there’s nothing happening in this city. This is real investment and our media should tell the real story.”
The Acting President, whose family is a key stakeholder in Choppies Zimbabwe, said Bulawayo was ripe for business and challenged business executives in the city to be innovative to make profits.
Since its grand entry into Zimbabwe in 2013, Choppies has opened 30 branches countrywide and has a direct employment base of up to 2 000.
The firm has taken over and reopened closed outlets that were previously used by Solomon’s, Advance Wholesalers and BSI Steel.
Online Reporter