BUSINESS REPORTER
Nestlé Zimbabwe has commissioned a US$2.5m cereal manufacturing line which will result in over 30% incremental volume through put in cereals as the food and beverages concern expands capacity to meet local demand and exports.
The commissioning was done in Harare Thursday alongside the launch of two new products, Nestlé Cerevita instant sour porridge and Nestlé Cremora with milk.
Current exports average US$400,000 per month and the target is to triple that in the medium term, according to Bruno Olierhoek, Nestle’s market head East and Southern Africa.
He said the launch of two products seeks to address the relevance of the food and Beverage Company’s portfolio in “delighting the traditional consumer taste preference of Zimbabweans and offering superior consumer value”.
The milestones, Olierhoek said, are key pillars to Nestlé Zimbabwe transformation plan which was rolled out towards the end of 2019 focused on future proofing the business in Zimbabwe.
Additional pillars of the transformation plan include import substitution and local value chain development, expanding the manufacturing capacity and increasing capacity utilisation and digital transformation.
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, Nestlé Zimbabwe has invested over US$40m, a testament to its commitment and belief in the future of Zimbabwe according to Olierhoek.
Nestle has been in Zimbabwe since 1959, a journey that has been characterised by commitment and dedication to Zimbabwe, according to Olierhoek.
“Nestlé has in both good and challenging times, continuously innovated around its portfolio and investing in capacity and capability to secure our commitment to the future of Zimbabwe while growing sustainably and offering value to all our stakeholders,” he said.
Industry and Commerce minister Sekai Nzenza said the investment by Nestle “attests to the confidence that your company has in the potential future of Zimbabwe”.
“Having a strong presence in 189 countries, we are proud that you continue to find Zimbabwe as a favourable investment destination,” Nzenza said.
She said the commissioning of the equipment was in line with Zimbabwe’s thrust to increase local production in line with the Local Content policy.
