Online Reporter
Business Reporter
African Distillers invested US$4.4 million in capital projects during the year to March 2026 as the beverages maker accelerated efforts to modernise its production facilities, improve operational efficiency and position the business for future growth.
Company chairman Mr Matlogonolo Valela said the investment entailed plant and equipment upgrades, enhancing production reliability and improving overall operational efficiency.
He said the capital programme had strengthened the company’s operating platform, resulting in improved production throughput and greater cost efficiency.
“Capital expenditure of US$4.4 million was incurred during the year, directed towards modernising plant and equipment, improving reliability and enhancing operational efficiency.
“These investments strengthened the operating platform and supported improved throughput and cost efficiency,” Mr Valela said in the company’s annual report.
Building on the completed upgrades, Afdis is now advancing a US$8 million investment into a new packaging line, expected to be commissioned during this financial year.
The project will significantly expand production capacity, increase manufacturing flexibility and eliminate bottlenecks that have constrained output, particularly in its fast-growing product categories.
The investment forms part of Afdis’ broader strategy to meet rising consumer demand while improving production efficiencies and supporting long-term profitability.
Afdis expects growth opportunities to be supported by continued expansion in key sectors of the economy, including agriculture, mining, infrastructure development and rising diaspora remittances, which continue to underpin consumer spending.
Mr Valela said management remains focused on delivering sustainable growth through product innovation, capacity expansion and market development initiatives.
However, he cautioned that global geopolitical tensions, particularly in the Middle East, continue to pose risks to the operating environment by disrupting international markets and increasing fuel prices and production input costs.
“Management remains focused on sustainable growth and profitability through product innovation, capacity enhancement and market development, supported by continued economic activity in agriculture, mining, diaspora remittances and infrastructure investment,” he said.
He added that the company continues to closely monitor developments in global markets while implementing mitigation measures to cushion the business from higher operating costs arising from external shocks.
The latest capital investments underscore Afdis’ commitment to strengthening its manufacturing capabilities and enhancing competitiveness as it positions itself to capture growing demand in Zimbabwe’s alcoholic beverages market while navigating an increasingly volatile global operating environment.
