admincompliance plans.
However, the Swiss company has repeated its commitment to its operations in the country.
In Zimbabwe, Nestle manufactures foodstuffs for babies and also makes cereals and powdered milk under various brands.
Nestle Zimbabwe said it was committed to continuing its operations, adding that the operating environment, although fraught with challenges and uncertainties, was “stable”.
“Nestle Zimbabwe has been in Zimbabwe for 53 years both in times of economic downturns and in times of prosperity and surely the company will manage the situation as it comes to secure its survival for a long time to come,” said Nestle Zimbabwe executive director Mr Farai Munetsi.
Independent economic analyst Mr Moses Moyo said the company would be on the Government’s checklist for indigenisation compliance.
“Despite doing well and enjoying a good market share the indigenisation policy is still a scare for the company and this has to be settled to enable it to be certain of its future, especially with threats that have previously been made against it,” said Mr Moyo.
Mr Munetsi said Nestle Zimbabwe’s “indigenisation proposals” were still under consideration by the Government and added that the two parties “are still in discussion” over the issue.
Zimbabwe is a key market for the company in the Southern African region.
Last September, Nestle Zimbabwe set up a new cereals manufacturing line and upgraded another.
The manufacturing plant in Harare is operating at 54 percent of capacity, above the average capacity for most manufacturing companies in Zimbabwe although there is room to ramp this up.
Mr Munetsi said it was difficult to measure the company’s market share as “products are not consistently in the market” while there is also strong competition from imports.
Analysts said companies such as Nestle Zimbabwe are likely to continue encountering problems that persisted in the country last year.
These include a tight liquidity crunch that has driven up the cost of borrowing, as well as erratic and unreliable power and water supplies. — BDLive.
Online Reporter