ZIMBABWE – Nestle Zimbabwe has inaugurated US$2.5m cereals manufacturing line, aimed to boost operations to meet local demand and exports.
The expansion, according to The Herald, will result in over 30% incremental volume through put as the food and beverages concern expands capacity, targeting to triple its US$400,000 monthly exports in the medium term.
Officiating at the launch of the new line, Industry and Commerce Minister Dr Sekai Nzenza, said the investment by the food company will go a long way in expediting the country’s industrialisation strategy.
“I would like to commend Nestle Zimbabwe for this investment worth US$2.5 million, which will contribute towards our industrialisation agenda and improve capacity utilisation and employment creation in line with the recently launched National Development Strategy 1,” said Minister Nzenza.
The commissioning ceremony coincided with the launch of two products i.e. Nestlé Cerevita Instant Sour Porridge and Nestlé Cremora with Milk.
According to the company, the new products have over 80% local content which is expected to enhance their affordability on the local market and competitiveness in export markets.
Nestlé Cerevita Instant Sour Porridge is fortified with iron and vitamins B1, B5, and C which makes it a healthy and nutritious offering with a unique sour taste.
While, Nestle Cremora with Milk is a coffee and tea enhancer with a twist for that creamier taste.
“I would like to commend Nestle Zimbabwe for this investment worth US$2.5 million, which will contribute towards our industrialization agenda and improve capacity utilization and employment creation in line with the recently launched National Development Strategy 1.”
Zimbabwe Industry and Commerce Minister – Dr Sekai Nzenza
Nestlé Zimbabwe managing director Eunice Ganyawu-Magwali highlighted that the company is focused on evolving its strategies and making changes needed to deliver balanced growth.
“We unlock the power of food to enhance quality of life for everyone today and for generations to come. The new products fit into Nestlé’s nutrition, health and wellness strategy,” she said.
The commissioning is in line with Nestlé Zimbabwe’s transformation plan which was rolled out towards the end of 2019.
Pillars of the transformation plan include import substitution, local value chain development, expanding the manufacturing capacity, increasing capacity utilisation, innovation and renovation of product portfolio focusing on use of local ingredients, digital transformation, empowering communities and leading the sustainability agenda.
The new business model has seen Nestlé Zimbabwe reducing the foreign currency component required in the business to 20% from 85%.
In the past 10 years, the food and drink processing concern has invested over US$40m in the Southern African country.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE
