Online Reporter
Ray Bande
Senior Reporter
MUTARE-BASED Mega Market’s acquisition of 100 percent of Lobels Holdings has been hailed as a landmark corporate milestone that could significantly strengthen Manicaland’s economy, create jobs and cement the province’s position as an emerging industrial hub.
The Competition and Tariff Commission (CTC) recently approved the vertical merger, which combines Mega Market’s flour milling operations with Lobels’ bread manufacturing business, creating an integrated value chain stretching from flour production to the delivery of finished baked products.
The transaction represents a major leap for the Mutare-headquartered company, transforming it from a regional enterprise into a national player with an expanded footprint in Zimbabwe’s food manufacturing sector.
Analysts, economists and Government officials say the deal has the potential to generate substantial economic benefits for Manicaland through increased investment, employment creation, industrial growth and enhanced agricultural production.
Provincial Director for the Ministry of Industry and Commerce, Mr Kupukani Masunungure, said the acquisition demonstrates the growing capacity of provincial businesses to compete and thrive at the national level.
“Mega Market’s takeover of Lobels Holdings is confirmation of a provincial company growing into a national player,” he said.
Mr Masunungure said the merger is expected to stimulate economic activity across several sectors while protecting existing jobs.
“The CTC bars merger-related retrenchments for 24 months, except at senior management level, meaning existing livelihoods are protected. At the same time, expansion in milling, baking, transport, logistics and sales is likely to create additional employment opportunities,” he said.
He added that Mega Market’s extensive distribution network could support the development of a modern baking and food-processing hub in Mutare, attracting fresh investment into the province and accelerating industrialisation efforts.
The acquisition is also expected to strengthen food security by ensuring a more stable supply of bread and flour products across Manicaland, while creating additional market opportunities for wheat producers in districts such as Makoni, Mutasa and Nyanga.
Mr Masunungure said the deal aligns with Government efforts to promote value addition, import substitution and private sector-led economic growth.
“In short, this is devolution, industrialisation, value addition and job creation in action. It demonstrates the growing capacity of businesses based in Manicaland to compete nationally and contribute meaningfully to economic development,” he said.
Mega Market managing director and chief executive officer, Mr Muhammad Shiraan, recently outlined ambitious plans to deepen the company’s footprint in Manicaland through the establishment of a state-of-the-art Lobels Bakery in Mutare.
“I have a passion for the growth of Mutare and all its socio-economic institutions. It is along the same lines that we will eventually have a state-of-the-art bakery here in Mutare for Lobels Bakery,” said Mr Shiraan.
The proposed investment is expected to complement existing Lobels operations in Harare and Bulawayo, while bringing production capacity closer to key markets in the eastern region.
District economist in the Ministry of Local Government and Public Works, Mr Gwinyai Mafasitera, said integrating Mega Market’s flour milling business with Lobels’ baking operations will improve efficiency across the value chain.
“Reliable bread supplies on the market and the possible establishment of a bakery in Manicaland can unlock employment opportunities and contribute towards the attainment of Vision 2030,” he said.
Mr Mafasitera noted that Mega Market will benefit from a guaranteed internal market for its flour, creating economies of scale that can ultimately stabilise consumer prices and increase production volumes.
He added that expanding operations may also create opportunities for local wheat farmers through subcontracting arrangements designed to secure raw material supplies.
However, he cautioned that regulators must monitor the market to ensure fair competition and prevent smaller bakeries from being disadvantaged.
“While there are potential competition concerns associated with any large merger, the overall outlook remains positive. The acquisition is expected to strengthen the bakery sector through investment in modern equipment, enhanced productivity and expanded production capacity,” he said.
Deputy Director for Business Development in the Office of the President and Cabinet (Manicaland), Mr Albert Muziti, said the acquisition is expected to contribute positively to provincial economic output in both the short and long term.
“The acquisition of Lobels will improve provincial GDP through increased production, higher demand for flour and expanded employment opportunities. The benefits will be even greater if future production facilities are located within Manicaland,” he said.
Development economist, Mr Albert Nyawo, said the deal aligns with the province’s broader industrialisation ambitions, and can help retain more economic value within Manicaland.
“This acquisition has significant positive implications for economic growth and development in Manicaland because Mega Market is headquartered in the province,” he said.
Mr Nyawo said greater integration of activities ranging from wheat production and milling to baking and distribution would strengthen local value chains, boost household incomes and increase revenues for local authorities.
