Businesses urged to go into partnerships

Ngoni Dapira
INDUSTRIALISTS have been urged to engage in strategic business partnerships to remain operational in the wake of limited foreign direct investment. Speaking during a tour of Mutare Bottling Company on Monday, the Minister of State for Manicaland Provincial Affairs, Cde Mandi Chimene, applauded Econet Wireless chief executive officer Mr Strive Masiyiwa and the Goldberg family for partnering to keep MBC operational.

MBC is a subsidiary of Econet Wireless Zimbabwe, which has a 67 percent stake in the business, while 33 percent is taken up by the Goldberg family.
Cde Chimene said several businesspeople were now in the habit of whining about the economic crisis, but doing little in terms of strategic partnerships.

“A lot of companies are now in the habit of just crying about the economic crisis, but doing little about it. It may feel good to be the sole owner of an enterprise, but nowadays strategic business partnerships are a viable solution.

“At times we do not even have to look far. Mutare Bottling Company roped in a local firm, Econet, and look at the benefits.
“Today they are one of the few remaining operational companies in Mutare,” she said.

MBC managing director Mr Allen Lang said although the company remained operationally viable it was currently servicing a $3,9 million bank overdraft.
“20 years ago MBC was one of the small companies in the province in terms of employment creation, but now we are one of the big employers left.

“We survived the storm, but we are operating on an overdraft. Our first priority is to repay the loan and maintain our reputation as a viable entity to lure more investment. Servicing of loans is important to give confidence to potential investors and we prioritise that,” said Mr Lang.

He added that last year alone MBC contributed $1,7 million towards the fiscus through various taxes.
Cde Chimene applauded the company for diligently paying taxes and maintaining good corporate governance values.

She said her familiarisation tour was meant to see the state of industry in the province and chart out possible ways out of the current economic doldrums with players.
Last year MBC commissioned a new state-of-the-art $17 million automated plant expected to boost production by 400 percent.

The new production line by end of last year is said to have improved the firm’s capacity utilisation from 35 percent in 2013 to 50 percent last year.
MBC employs 300 permanent workers and 30 seasonal contracts during peak production.