KENNETH MATIMAIRE
MUTARE
Soap and cooking oil manufacturer Willowton Group has shelved its massive expansion drive at its Mutare plant owing to the deteriorating economic situation, Business Times can report.
Willowton is a South African based manufacturing firm, which now operates in three African countries including Zambia. It produces brands such as D’Lite, Sunfoil, Britelite, Sona, Sunshine D, Nuvolite, Romi and Wooden Spoon.
Having established a Zimbabwean plant in April 2016, which was officially launched in March this year by President Emmerson Mnangagwa, Willowton currently produces the first top four brands (D’Lite, Sunfoil, Britelite and Sona) at its Mutare manufacturing plant.
The firm had earmarked to expand the Mutare plant product range and operations to manufacture margarine brands, and set up a soya beans crushing line.
However, Willowton chief executive officer Bruce Henderson said plans have been put on hold.
He cited the poor performing economy, exacerbated by foreign currency shortages and the high premium on the exchange rate.
“That is going to depend on all the performance of the economy and direction of the monetary policy. The guys are saying, let’s see what exactly is happening. Let’s see the environment that we are moving into whether it (plant) is going to be 10 000 tonnes or 20 000 tonnes. It is going to be dependent on that (economy performance). Because, remember when we are doing these things, we are doing it with a long term view,” said Henderson indicating that they are currently observing the economic terrain.
Henderson said the monetary policy has to address all the long handing economic issues to allow industry and business to move forward. He suggested that government has to either reintroduce a local currency or adopt the South African rand.
“We are looking at the monetary policy whether the country is going to reintroduce the Zim dollar or adopt the rand. I’m sure that is going to be addressed by the new minister (of Finance, Mthuli Ncube). That’s is very important for our country because that all affects our raw imports,” he said.
Henderson said between reintroducing a local currency and adopting the rand, he opted for the former.
“Eventually we have to end up with our own currency. I think in a milestone there are some things that need to be in place, things like import cover and so on. We are a country that is using United States dollars that has led us at an expense especially when we can’t export. When we introduce our own currency our money comes back up to speed, our agriculture comes back up to speed,” he said.
Willowton Group was founded in 1970 in South Africa by the Moosa brothers who ran it together with their sons. The Willowton group has grown to become a leader in Southern Africa, manufacturing edible and related products including spreads, soaps, candles, baking and industrial fats.
