daniel chigunwe
Nelson Gahadza
Senior Business Reporter
THE Government will address some distortions in the retail supply chain where manufacturers are directly supplying goods to informal traders and retailers, threatening the viability of wholesalers.
Speaking during a tour of National Foods Holdings yesterday, Industry and Commerce Minister Dr Sithembiso Nyoni said there was need to address the anomaly to avoid chaos in industry and commerce.
“We are putting order in the commerce sector by ensuring that manufacturers deliver to wholesalers and these are accessed by retail (operators) rather than what is happening now, whereby companies are delivering to the informal sector.
“That is distorting that value chain. If we do not address that, we are killing the wholesalers and bringing chaos to the market,” she said.
Minister Nyoni said the retail value chain creates jobs and order, adding that it was Government policy to ensure the value chain was alive to sustain those jobs.
“National Foods understands this, and together we will correct this and ensure we address the distortions that are happening right now,” she said.
There have also been concerns by consumers that some manufacturers were even avoiding sending their products to major retailers, preferring tuckshops and those that sell from vehicles, who pay in US dollars.
Minister Nyoni said the manufacturing sector has been one of the fastest growing sectors in the country, riding on the back of a stable economy.
Therefore, the Government will support the industry to ensure its viability, she said.
“If they produce quality, we will ensure there are no imports, and if our industries give our consumers good quality, we will ensure we protect them,” said Minister Nyoni.
National Foods is the largest food manufacturer in the country and continues to invest in state-of-the-art plant and equipment, introducing new product lines to the market, and contributing to the Local Content Strategy and Buy Zimbabwe campaigns.
Minister Nyoni said National Foods was not only expanding in Harare, but in other cities like Bulawayo in line with the Government’s devolution agenda.
“National Foods has increased its uptake of locally sourced raw materials like wheat, maize and soya, as well as packaging.
“Agro-processing in the food and beverage sector is at the heart of the Government’s policy thrust as it contributes to value addition, job creation, food security and nutrition in our country,” she said.
Minister Nyoni added that they will continue to support the manufacturing sector, as it plays a pivotal role in enhancing the structural transformation of the economy and was an essential driver.
“I am happy to be advised that National Foods has benefited from the fiscal incentives, VAT deferments and duty rebates on imported capital equipment and machinery.
“My ministry will also support National Foods in plans to install solar power at your plants, as this is in line with the Green Industry Initiative,” she said.
National Foods chief executive, Mr Mike Lashbrook, said the company has over the past two years made investments worth over US$30 million in bringing in new products and expanding capacity.
“The pasta plant is expected to come on line this year and the biscuit plant will be completed by December this year, while in Bulawayo, we have invested in bread capacity,” he said.
He said the investments will ensure National Foods produces competitively against regional products.
“We will be value-adding flour to ensure we produce products that are of high value and important to our country.
“We have adequate raw materials at the moment, and there are no issues in terms of raw material supplies in rice, soya, wheat and maize,” said Mr Lashbrook.
Mr Nyasha Mhizha, managing executive biscuits, said construction of the biscuit plant was completed a few weeks ago and they are now in the process of installing the equipment, a process that would be completed in December.
“We are seeing a lot of imports coming into Zimbabwe of superior quality. We, therefore, went on to procure the latest equipment to be able to compete with our regional peers and substitute them with local products,” he said.
The plant equipment was sourced from Italy.
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