LIVINGSTONE MARUFU
Local companies should capitalise on the existing trade agreements within the region and the whole of Africa to expand their operations and foreign currency, President Emmerson Mnangagwa said yesterday.
His calls come at a time when various companies are grappling with forex challenges amid indications that the auction system is overwhelmed by the local market’s demand.
Speaking at the official opening of Varun Beverages expansion project, Mnangagwa said the operationalisation of the production line and setting up of an additional plant is “most timely not only in respect of satisfying the ever growing local market but with regards to the potential in the regional market”.
“All sectors of the economy must equally take advantage of Zimbabwe’s existing trade arrangements within Africa and beyond.
“The operationalisation of the African Continental Free Trade Area (AfCFTA) with a market of more than 1.2bn people must be fully utilised and exploited,” Mnangagwa said.
RJ Corp chairman Ravi Jaipuria said the group has embarked on an expansion drive to earn elusive forex. RJ Corp is Varun Beverages parent company. “With this new expansion we will increase our export of beverages, preforms and plastic closures to Zambia, DRC, Botswana, Malawi and other neighbouring countries, which will bring in sizable foreign exchange into Zimbabwe.
“We promise you that no external or internal factors will ever be able to derail us from the path of responsible enviro-socio-economic business,” Jaipuria said.
Mnangagwa was confident that such investments across all sectors of the economy will help the country to build back better and emerge stronger from the pandemic.
Varun Beverages, which unveiled its seventh production line yesterday, has made tremendous growth since 2018. The new plant has a capacity of producing 400 bottles per minute of bottled water and cordials.
Overall, Varun Beverages production has increased to 60m bottles and cans per month from around 15m in around 2018.
The investment and roll out of Mobile Dispensing Units by Varun Beverages has changed the beverage retail landscape and created employment opportunities for youth and women.
Varun Beverages has direct employment of over 2000 local Zimbabweans, distributors and its employees and transporters amount to 3500 people as indirect employment.
In the outlook, Varun Beverages wants to invest in new avenues of fresh investment in FMCG products like juices and dairy.
