adminHe told New Ziana the local market was flooded with cheap imports, while export markets offered competitive prices.
“We are presently exporting to Zambia, Democratic Republic of Congo (DRC) and Malawi.
“These markets give us a fair value for our products which are facing stiff competition from cheap South African oils and other products which enter the country duty free,” he said.
Mr Mushangari said production levels at Olivine Industries stood at 32 percent, noting this was being affected by lack of working capital and aged machinery.
He said production costs were higher compared to South Africa as most processes at the company were still manual.
“In some cases we have replaced some old machinery with modern technology, but overall we are still manual in many sections,” Mr Mushangari said.
He said production capacity would only rise if the company secured fresh investment capital.
“We are looking at capital injection so that the volume of business can grow,” he said.
He said although Olivine Industries preferred the export market, it was failing to adequately supply the local market due to capital and operational constraints.
Apart from cooking oil, the company produces laundry soaps, margarine and baked beans. — New Ziana.
derick.khumalo
Online Reporter