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LARRENCE Gwati is a proprietor of LG Foods, one of the biggest indigenous food manufacturing and pre-packaging firms in Bulawayo.
In venturing into business, Gwati had to take major risks in life, parting with some of his most valuable assets. He had to sell his house in Emganwini high-density suburb and three motor vehicles to raise capital to start the now fledging basic foods manufacturing company.
LG Foods started from humble beginnings in 2005, as Gwati through the aid of his supportive wife, Vongai and two assistants, pre-packaged fine salt, matemba and soya chunks at the backyard of their home in the high-density suburb of Cowdray Park.
“I once worked in the food manufacturing industry and it is from this background that I developed a passion to start my own company that would provide basic commodities,” said Gwati.
As LG Foods’ market base continued to increase, Gwati had to lease a factory shell in Kelvin West industrial sites in 2007 in an effort to improve on production and quality of products.
The company remains one of the few indigenous companies that managed to weather the storm at the height of the country’s economic downturn as hyperinflation took its toll.
Upon surviving that era, Gwati keeps on dreaming big.
“We have set ourselves a target of attaining blue chip status in the near future and we are working hard to achieve that. Late last year we moved from pre-packaging to manufacturing and our product line includes peanut butter, mealie-meal, juices (both dairy and syrups) and maputi (sugared and coloured as well as salted).
“Most indigenous business persons falter during trying times because they lack proper business acumen and are not innovative enough to guard against a turbulent economy of which our country is always exposed to,” narrated Gwate.
LG Foods supplies its wide range of products to a number of retail outlets in Bulawayo as well as Hwange, Victoria Falls and Plumtree and has set sights at spreading its wings into the Midlands Province.
“We have set out at tapping into a number of markets and this will see us exploring areas such as Gwanda, Beitbridge, Zvishavane, Shurugwi and Gweru where we might even set up distribution centres depending on the demand of our products,” Gwati said.
As part of its effort to explore the foreign market the company intends to have its products certified by the Standard Association of Zimbabwe.
To the manufacturer, product certification acts as an effective and credible marketing tool, both locally and internationally. It enhances production efficiency and minimises wastage. It protects the manufacturer from unfair competition.
To the consumers, it provides confidence that the product has been certified in terms of safety and reliability. It gives a guarantee that the product is being manufactured under an effective system of testing, control and monitoring and provides protection against inferior or sub-standard products.
“We intend to have three of our products certified by SAZ before the end of this year or early next year and as such we are working tirelessly to improve their quality as well as improving on hygiene at our workplace.
“Our dairy juice is already a hit in neighbouring Zambia and we believe this product can perform well in other countries such as Botswana and the Democratic Republic of Congo including our peanut butter as such we need to have them certified by SAZ,” Gwati said.
He however, bemoaned the demise of Bulawayo’s industries and cited the need for government to come up with laws that promote investment.
“It saddens me to see that a number of factories in Bulawayo have closed down and either turned into funeral parlours or churches. This is not a good sight at all for the city and the country’s economy as a whole. There is need for government to create a conducive environment for investors. My heart bleeds to see a company like Sugar Refinery deserted like that . . .” Gwati said.
He also noted that there was a tendency among the big and dominant retail outlets to overlook products manufactured by local companies in preference for those coming from Harare or imports from South Africa and Botswana.
Zimbabwe imported goods worth more than R5,6 billion from South Africa in the first three months of the year, raising worries over the growing import bill and fears that the country was fast becoming a supermarket of the neighbouring country.
Figures released by the South Africa Revenue Service recently, showed that Zimbabwe only exported goods worth a paltry $460 million creating a trade deficit of more than R5,2 billion.
“Some of the big supermarkets in Bulawayo are shunning goods that are being supplied by local manufacturers preferring those coming from Harare and imports despite the fact that our products will be much better in terms of quality.
“It’s high time that this notion that products manufactured by Bulawayo firms are inferior comes to an end as it is one of the reasons contributing to the demise of the city’s industries. Local manufacturers should be promoted to improve production as well as competitiveness,” Gwati said.
The LG owner took a swipe at service providers’ lack of showing a human face in the wake of a myriad of challenges facing businesses in the country.
“Service providers should have a human face when dealing with companies instead of taking litigation measures in the event of non-payment. They should extend companies an olive leaf to pay their dues through payment plans. However, I am glad that the current Bulawayo City Council understands the challenges which are faced by companies and is now accepting payment plans.
“The local authority seems to understand the period which we are coming from but as companies we shouldn’t take advantage of this and default on payment of bills but should honour their obligations. The revival of the city’s industries needs concerted efforts by various stakeholders as we seek to bring back the good old glory days,” Gwati said.
As part of its social corporate responsibility, the company has over the years been sponsoring the Southern region women soccer league and this year introduced a men soccer team which is plying its trade in the Bulawayo Division Three league.
LG Foods employs over 20 workers and has over the years invested over $30,000 for the purchase of machinery at its Kelvin West factory.
Online Reporter