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Rumbidzayi Zinyuke Manicaland Bureau
Fast-moving consumer goods (FMCG) distribution company Mega Market has applied for Special Economic Zone status for its US$25 million maize and wheat milling projects in Mutare.
The company, which started operations in 2000, has been gradually expanding its business from packaging and distribution of numerous Mega Market lines of products to include manufacturing and milling.
The milling division has a maize milling plant that is operating at 30 percent capacity owing to a shortage of grain and a wheat milling plant that is still under construction.
Speaking on the side lines of a recent tour of the company premises by Manicaland Provincial Affairs Minister Dr Ellen Gwaradzimba, Mega Market managing director Mr Shiraan Ahmad said being awarded a Special Economic Zone status would allow them to increase production and boost their competitiveness to generate foreign currency needed to keep their business afloat.
He said due to nature of the consumer goods the company sells, they had not been able to secure export permits as they were required to satisfy local demand first before exporting.
“We continue to engage Government to find a common solution but SEZ status will really help us because it will open export markets up for us. Export permits will be much easier to get and importation of critical equipment and duty free raw material will also really help in giving us an added advantage.
“If you look at the region, most products are imported from South Africa, which has large economies of scale, so obviously their unit cost of production is much lower than ours. SEZ status will allow us to compete with South Africa by bringing our cost of production down,” said Mr Shiraan.
Online Reporter