Online Reporter
Ray Bande
Senior Reporter
MUTARE-based fast-moving consumer goods (FMCG) giant, Mega Market, has acquired iconic bread manufacturer Lobels Bakery in a deal expected to pave the way for the establishment of a modern baking hub in the eastern border city while strengthening the company’s growing footprint in Zimbabwe’s food manufacturing sector.
The acquisition, understood to be valued at more than US$20 million, marks a significant milestone in Mega Market’s diversification strategy and adds one of Zimbabwe’s most recognised bread brands to its expanding investment portfolio. The move is expected to boost bread production capacity, create employment opportunities and enhance the availability of baked products across Manicaland and beyond.
Lobels Bakery joins a growing list of companies associated with Mega Market’s business interests, which include relationships with leading brands such as Dairibord, Turnall Holdings, Tanganda Tea Company and Meikles.
Industry observers believe the acquisition has the potential to transform Mutare into a strategic baking and distribution centre, leveraging Mega Market’s extensive logistics network and manufacturing infrastructure.
Speaking on the sidelines of a tour by the Special Advisor to the President on Monitoring and Implementation of Government Programmes and Projects, Dr Joram Gumbo, on Wednesday, Mega Market (Pvt) Ltd managing director and chief executive officer, Mr Muhammad Shiraan Ahmed, confirmed the acquisition of one of the country’s oldest and most recognisable bakery brands.
Mr Ahmed said the investment reflects the company’s confidence in Zimbabwe’s economic prospects and its commitment to expanding local production.
“We are firm believers in keeping value, skills and employment within our borders. It is one more way in which we build the economy brick-by-brick, bolt-by-bolt and beam-by-beam,” he said.
He commended Government efforts aimed at improving the business environment and promoting investment.
“We welcome the measures that Government has put in place to reduce the cost of doing business and improve the ease of doing business. These initiatives strengthen competitiveness and create opportunities for Zimbabwean products to access regional markets.
“We also appreciate the continued support for domestic investment. While foreign direct investment remains important, domestic direct investment plays an equally critical role because profits generated locally are reinvested into infrastructure, businesses and employment creation within the country,” said Mr Ahmed.
The businessman said Mega Market remains committed to reinvesting its earnings into productive sectors of the economy.
“Every cent of profit generated by our businesses is reinvested into expanding infrastructure, growing operations and creating jobs for Zimbabweans. We believe sustainable economic growth is driven by local investors who remain committed to developing their communities,” he said.
The acquisition represents another major chapter in Mega Market’s remarkable growth story.
Founded in 2000 as a modest retail operation selling mackerel fish from a small shop along Herbert Chitepo Street in Mutare’s central business district, the family-owned enterprise has grown into one of Zimbabwe’s leading FMCG packaging, manufacturing and distribution companies.
Its latest acquisition comes less than a year after the commissioning of a US$25 million milling plant in October 2025. The facility has the capacity to process 300 tonnes of wheat daily, creating strong synergies with bakery operations and positioning the company for vertical integration within the food value chain.
Mega Market has also recently ventured into trailer assembly, establishing a manufacturing plant in Mutare that produces haulage truck trailers for local and export markets.
From its headquarters in Nyakamete, the company now operates an extensive distribution network serving customers across Zimbabwe and the wider region. Its operations include modern warehousing facilities for rice, frozen products and general merchandise, as well as manufacturing plants producing flour, mealie-meal and noodles.
The company also markets several of its own brands, including Mega, Ideal, Top Chef and Ekono Rice.
Founded in Bulawayo by brothers Benny and W. Lobel, Lobels Bakery began operating as Wonder Bakery before being rebranded as Lobels in 1957. The company became one of Zimbabwe’s most recognisable bread manufacturers and established a strong presence in households across the country.
The Lobel family exited the business in 2002 when it was acquired by Ceuvost Services, a consortium that included businessmen Livingstone Gwata, Herbert Nkala, Freddy Mtanda and Brigadier-General David Chiweza.
With fresh capital, expanded manufacturing capabilities and access to Mega Market’s extensive distribution network, industry analysts expect the acquisition to inject new momentum into the 68-year-old bread brand as it seeks to consolidate its position in Zimbabwe’s competitive baking industry.
The transaction also underscores growing confidence among local investors in the country’s manufacturing sector and highlights the increasingly important role of domestic investment in driving industrialisation, value addition and employment creation.
