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Conrad Mwanawashe in Gweru
YEAST producer Anchor Yeast says that the transaction with French group Lesaffre will result in a rise in production capacity to over 100 percent from the current 79 percent while employees are expected to increase by 50 percent from the current 125. Anchor Yeast chief operating officer Mr Ngaa Gumbo told Industry and Commerce Minister Mike Bimha, who was on tour of Gweru’s industries, that the transaction – which will see the French company taking up 60 percent stake – will deliver technological transfer, expertise and financial benefits over time.
Lesaffre controls about 60 percent of the world’s yeast market.
“We are already at an advanced stage to the extent where we have given some of the agreements to Government for approval. There are certain conditions that are precedent that we need to complete,” said Mr Gumbo.
“Their intention is to make Zimbabwe the hub of manufacturing for the region and this allows us to compete.
“The tripartite agreement that was signed brings in competition into our market but with that we are able to fend off competition and be able to look at supplying the regional market and bring in foreign currency outside of creating employment in Gweru,” said Mr Gumbo.
Anchor Yeast intends to manufacture some of the products that are currently being supplied to South Africa from France.
“We have had support from the Government particularly the Ministry of Industry and Commerce in terms of the impact it will have on Gweru and Midlands as a whole,” said Mr Gumbo.
Minister Bimha said the news is sweet music as it has the potential to return Gweru and by extension Zimbabwe to being a solid manufacturing hub.
“As Government we are interested in any new developments in this part of the country because it brings back the Gweru that we know,” said Minister Bimha.
The tour is part of the Confederation of Zimbabwe Industries congress which began in Gweru yesterday.
Online Reporter