Online Reporter
Africa Moyo
Deputy National Editor
LOCAL manufacturers should take advantage of growing investments and modern production technologies to expand into regional markets and boost exports, Industry and Commerce Minister Mangaliso Ndlovu said yesterday.
Speaking after touring Pure Oil Industries, which trades under the ZimGold brand, Minister Ndlovu said local companies were making significant investments that were improving competitiveness and positioning the country’s manufacturing sector for growth.
The tour focused on assessing recent investments made by the company, including a stock feed manufacturing plant, a mineral water plant and a wheat milling plant.
Pure Oil Industries has diversified beyond edible oils into a range of fast-moving consumer goods and agro-processing products as part of its growth strategy.
Said Minister Ndlovu: “I was at ZimGold to assess their operations. It was an invitation to just assess some of the latest investments they have made.
“They have made significant investments in a stock feed manufacturing plant, in mineral water plant, and also in the wheat milling plant. So, they will be doing flour there. It’s a company that is quite diversified now in the FMCG (fast moving consumer goods) business. There is a lot of investment in the agro-processing.”
Minister Ndlovu said the level of investment being witnessed in the local industry was encouraging and reflected confidence in Zimbabwe’s economic prospects.
“We are very happy in the level of investment coming into the country; the technologies that I’m now seeing in our industries. Certainly, we should be on our way to be competitive and hopefully we will soon be exploring the prospects of exporting up north into the region.
“The outstanding issue really for me with industry is to try and push our industry towards exploring the region and not just being content with the US dollar in our economy. But I am happy that competition is intensifying.”
Minister Ndlovu said local companies should increasingly focus on regional opportunities as a way of growing production and generating foreign currency earnings.
He added that increased competition in the manufacturing sector was benefiting consumers through improved quality and affordable prices.
“So, to see these investments happening, it really sits very well with me. I am very happy,” he said.
Pure Oil Industries, incorporated in 2012 and established in 2013, operates an integrated crushing and refining plant in Workington, Harare.
The company produces edible oils under the ZimGold brand from soya bean, cotton, palm, sunflower and canola. It also manufactures laundry soap, margarine, baker’s fat, as well as soya and cotton meal for stock feed manufacturers.
Its production capacity exceeds seven million litres of cooking oil per month, 200 tonnes of margarine and more than 1 000 tonnes of soap monthly.
The company recently invested US$8,5 million in a wheat milling plant, bringing its cumulative investment to approximately US$40 million.
It employs about 500 workers and continues to expand its footprint in agro-processing and manufacturing.
To boost their operations further, the company’s leaders have recommended the “control of imports of edible oils to shift consumption from imported oils to locally produced brands”. The company also called for the removal of the US$89,50 wheat import levy to reduce cost of production and increase raw material availability to local milling companies.
