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Economy: President Mugabe’s great promise

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THE major highlight of the recent 15th Annual National People’s Conference was President Robert Mugabe’s promise that the economy is on the rise and distressed companies would come to life in 2016.
After years of slow progress, marked by a harsh operating environment, the economy this year received several boosts, chief among them the signing of 12 mega deals between Harare and Beijing early this month, setting the tone for the hugely anticipated take-off.
“The economy is becoming better and next year, we expect things to be better. Some dead companies will become alive. The economy is on the steady road to recovery. Some companies are now back on their feet,” said President Mugabe.
And he was right.
A presentation by Industry and Commerce Minister Mike Bimha at the conference without doubt pointed towards an economy on the road to recovery.
He made a prescient point.
To those, especially in the media, wont on focusing on company closures and job losses there was a reminder of new developments of companies reviving, opening shop and expanding.
“This presentation gives an overview of the manufacturing sector in terms of measures adopted by the Government to put the industry on a firm recovery path as well as achievements made to date,” said Minister Bimha during his presentation.
New investments
Delta Beverages: commissioned a new Chibuku plant in Bulawayo worth US$17 million.
Nestle Pvt Ltd: invested in an Egron Plant Upgrade project worth US$8 million.
African Distillers Limited commissioned a new cider plant that improved output by 59 percent.
Dairibord Zimbabwe Holdings Limited: A new sterilised milk plant valued at US$4 million was commissioned with a capacity to produce 24 million litres of sterilized milk per annum.
Alpha Omega Dairy Company invested in chocolate manufacturing plant and launched 11 brands of ice creams.
Star Africa Corporation, refurbished 60 percent of its sugar production plant.
Olivine Industries: Willmar invested a total of US$ 29 million in Olivine Industries in September 2015.
Trade Kings Zimbabwe (Pvt) Ltd: Trade Kings Zambia is investing US$50 million over five years (2015-2020) into fast moving consumer goods.
Quest Motor Corporation has started assembling of Zhongtong buses at its Mutare plant.
Deven Engineering signed an agreement with Yutong of China in February 2015 for supply of bus kits to be assembled at its plant.
Bata Shoe Company has adopted a new strategy of Associate Business Units expected to increase capacity utilisation from 30 to 85 percent.
SamZim: In May 2015, a Korea based telecommunication manufacturing giant Samsung signed a US$10 million transaction with a local company, Cranbal Investments, to set up a television and refrigerator assembly in 2016.
Capri: The company launched a new refrigerator plant worth US$12 million in June 2015. Production is expected to increase from 5 000 units to 18 000 units per month.
Nico Orgo: The Company acquired two blending plants in Bindura expected to increase production from 15 000 tonnes to 120 000 tonnes of fertiliser per annum.
Dorowa Minerals Limited: In August 2105, Dorowa secured US$ 5million from the Reserve Bank of Zimbabwe to boost phosphate production. This is expected to raise full production to full capacity.
Sable Chemicals negotiated a US$24 million loan facility from Afrexim Bank to fund the installation of an ammonia terminal in Maputo in order to supplement local production. A new business model of importing ammonia in light of the reduced electricity supply is now being implemented.
ZISCO: Efforts to resuscitate the company remain top of the agenda.
INCREASE IN CAPACITY UTLISATION;
Cooking oil: Production level of cooking oil has increased from 4,5 million litres per month to 12,1 million litres against domestic demand of 9-10 million litres.
Sugar: The enactment of the SI 126 of 2014 reduced sugar imports and local production currently stands at around 480 000 tonnes against national demand of 300 000 tonnes of sugar per annum.
INVESTMENT APPROVALS
Blue Ribbon Industries: A total capital injection of about US$40 million will be made in 5 years by a Tanzanian company Bhakresa.
Anchor Yeast Pvt Ltd: is a merger between Anchor Yeast and a French investor, Societe Industrelle Lesaffre. The total capital injection will be US$8, 4million.
Apollo Tyres: This is a vendor-financed investment transaction where UK Apollo Tryes Limited will dispose 40 percent of its shareholding in Apollo Tyres Zimbabwe to an indigenous player.
Polyoak Packaging: The project will bring capital injection of US$3, 2 million into the economy, technology transfer and employment creation of about 28 people.
ART Holdings: Total value of investment is US$17million.
Willowton Group: The Company will set up a US$40 million plant in Mutare for cooking oil processing employing about 100 people.
Goldenglo Candle Manufacturing Pvt Ltd: An investment plan worth US$ 820 000 will be realised and about 100 people will be employed.
PEPSI is a joint venture between a local company, Glaciem Pvt Ltd and Varun Beverages, an Indian company. The venture will bring capital injection worth US$30 million.
There is no doubt that this is an economy on the rebound and that President Mugabe’s promise will surely come to pass.

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