Chronicle Editor
Leonard Ncube in Victoria Falls
LOCAL food manufacturing company, Associated Foods of Zimbabwe (AFZ) Private Limited, expects annual revenue to grow by 30 percent with volumes jumping to US$41 million by 2025 following an investment boost by an international private equity firm.
Spear Capital recently completed its investment in the food manufacturing giant, riding on the conducive business environment created by the Second Republic.
The move is set to bolster industrial growth in line with the country’s economic targets as expressed in the National Development Strategy (NDS1).
AFZ is one of the leading food manufacturers and distributors of processed foods operating under the Mama’s and Farmgold brands with plants in Vumba and Harare.
Production levels at the firm have significantly increased from about 40 tonnes per month to between 280-350 tonnes of foodstuffs and this is attributed to a recent injection of US$2 million working capital by another international investor, Norwegian Investment Fund for Developing Countries (Norfund).
The latest partnership with Spear Capital, is a part buy-out of existing shareholders, part working capital injection and part capital expenditure.
It is also an investment into systems and equipment to improve the manufacturer’s environmental impact, the company said in a statement.
“International private equity firm Spear Capital has completed its investment into the food manufacturing business Associated Foods Zimbabwe Private Limited (AFZ),” it said.
“The food segment revenue in the region is expected to show an annual growth rate of 30 percent, resulting in a projected market volume for the sector of US$41 million by 2025, which showcases the significant demand for AFZ’s products in the market,” read the statement.
The partnership will increase the working capital to purchase raw materials, upgrade and expand facilities and increase capacity utilisation of AFZ to become a market leader in Zimbabwe.
The ISO certified company plays a key role in value addition to agricultural goods from local farmers who supply it with raw materials thereby contributing to sustainable agriculture for local communities. – @ncubeleon.
Online Reporter