ZIMBABWE – Schweppes Zimbabwe, a major player in the region’s non-carbonated beverage sector, is investing US$28 million in a new citrus project to stabilize its Mazoe Orange Crush supply.
This effort is aimed at enhancing the reliability of its orange supply chain and expanding its market reach into Botswana.
Schweppes has faced challenges with fluctuating supply and inconsistent quality from local farmers. To address these issues, the company acquired 4,000 hectares of government land two years ago and plans to cultivate 700 hectares initially.
The project, which is part of a long-term strategy to ensure a steady supply of oranges, is expected to yield significant benefits over the coming years.
Schweppes anticipates that the project will eventually generate US$31.5 million in export revenue, boosting its regional market position.
With this investment, the company aims to control its supply chain more effectively and reduce the risks associated with external sources.
According to an analysis by Equity Axis, the citrus project could have mixed effects on Zimbabwe’s local industry and consumers. On one hand, it promises to invigorate the local agricultural sector, creating job opportunities and stimulating economic growth.
Meanwhile, it may intensify competition among citrus farmers and potentially affect their market share. Whereas consumers might benefit from more consistent product quality the initial investment could lead to higher production costs and price increases in the short term.
Moreover, current citrus suppliers could face challenges as Schweppes takes greater control of its supply chain. While some suppliers might see a reduction in their market share, the project could open new opportunities for collaboration and knowledge sharing within the agricultural sector.
Previous investments and future plans
In 2021, Schweppes announced a US$35 million investment in citrus production over 10 years, focusing on a 2,700-hectare plantation.
This plan aimed to boost production and value addition at the Beitbridge Juice Processing Plant. At that time, the company was processing 20,000 tons of fruit annually, with a goal of reaching 40,000 tons. However, limited local supply and competition from export markets presented challenges.
The new plantation included 300 hectares reserved for community development in Beitbridge, supported by Schweppes.
Additionally, the Beitbridge plant was set to be powered by a mini-solar power plant, and the Zhovhe Dam to supply water for irrigation.
“This investment will not only increase our local production but also enable us to explore new export markets and provide additional job opportunities for the local community,” Charles Msipa, Managing Director of Schweppes Zimbabwe, stated.
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