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Business Writer
ZIMBABWE Stock Exchange listed tea processing giant Tanganda Tea Company says its investment in solar energy and vast improvement in national power supply is yielding favourable results by reducing cost it incurs in sourcing power.
Last year, the largest producer, packer and distributor of tea completed the installation of three solar power plants with capacity to generate a combined 4,4 megawatts (MW) to reduce reliance on the national grid and costly diesel-powered generators.
In a trading update for the third quarter ended 30 June 2023, the company noted that demand for its products remains fairly strong.
“Our investment in solar is yielding results by reducing the cost of power. Fortunately, power supply from the national grid to the operations improved in June 2023 and the future looks promising in power supply from both our own solar system investment and improvement in supply from the national utility.”
The investment by Tanganda came at a time when the country was experiencing acute power shortages due to constrained power generation.
The power deficit was caused by limited production at Hwange Thermal Power Station, the country’s second-largest power plant, which was not able to produce at optimal levels due to aging equipment and frequent breakdowns.
However, the power supply has tremendously improved with the commissioning of the US$1,5 billion Hwange Thermal Power Station Units 7 and 8 Expansion Project in Matabeleland North Province, which has added 600 MW to the national grid.
The country is already feeling the positive impact of this massive investment, which has been facilitated by the Second Republic, and is a critical enabler towards the realisation of the National Development Strategy 1 (NDS1) and Vision 2030 targets.
On financial performance in the period under review, Tanganda said revenue was $32 billion which was 45 percent ahead of $22 billion achieved in the previous financial year in inflation adjusted terms while revenue for the nine months ended 30 June 2023 of $100 billon grew by 61 percent from prior year of $62 billion.
It noted that due to late onset of the rainy season, bulk tea production was four percent below comparable period last year and in-turn bulk tea export volumes were 12 percent below prior year.
Packed tea sales volumes were seven percent below prior year as the rapid decline in local currency saw volumes with some of the major customers decreasing. To counter the impact, the company said it continues to develop alternative trading channels.
Macadamia production was in line with prior year with the marketing season commencing earlier than prior year with 260 tonnes of current year crop already exported in addition to 475 tonnes that had remained unsold at the end of last year.
It said avocado production was 38 percent below prior year as a result of biennial bearing phenomenon coupled with the impact of the extensive pruning carried out on 55 hectares of mature trees in a bid to rejuvenate them.
Online Reporter