Pic credit: Zbc News
Story by Jeremiah Gora
President Emmerson Dambudzo Mnangagwa has hailed the commissioning of Varun Beverages Zimbabwe’s new Cheetos snacks manufacturing plant as another major milestone in the country’s industrialisation drive, saying the local production of the globally recognised brand reflects growing international confidence in Zimbabwe’s economy and investment climate.
Officially opening the new plant and laying the foundation stone for a forthcoming juice and dairy blending facility in Harare today, President Mnangagwa said the additional US$20 million investment by Varun Beverages would boost industrial diversification, create jobs and integrate Zimbabwe’s manufacturing sector into regional and global value chains.
“It is my distinct pleasure to be part of another milestone in Zimbabwe’s industrialisation journey here at Varun Beverages as we commission the new production plant of the world-famous Cheetos brand, here in Zimbabwe. The local production of such globally celebrated brands serves as an endorsement of the country’s economy, policies and ability to deliver high quality, internationally competitive products,” said President Mnangagwa.
The President said the latest investment demonstrates growing investor confidence in Zimbabwe and aligns with Government’s vision of transforming the country into an upper middle-income economy by 2030.
“The added US$20 million investment by Varun Beverages also marks industrial diversification, creation of employment opportunities for our people and manufacturing sector-integration into both regional and global value chains,” he said.
President Mnangagwa noted that when he inaugurated the company’s first plant eight years ago, it operated only one production line with a monthly capacity of about 10 million bottles.
“I am pleased to note that this complex has significantly expanded into a world-class manufacturing hub, with the addition of five more production lines, which include the production capacity of nearly 120 million bottles per month,” he said.
He added that the company now provides direct employment to about 2,000 people while also creating indirect opportunities for women and youth entrepreneurs.
“The company’s impressive growth strategy illustrates what can be achieved through consistency, sustained investment and strong collaboration between Government and the private sector,” said the President.
President Mnangagwa urged the company to continue prioritising worker welfare as it expands operations.
“Workers are the central drivers of long-term company success. It is your human capital base which acts as key agents in productivity, innovation and organisational resilience. Workers must therefore be appropriately taken care of,” he said.
The Head of State also applauded Varun Beverages for venturing into the juice and dairy sector, saying the planned facility would unlock more opportunities within agriculture and nutrition value chains.
“This forward-looking investment will broaden the footprint in the beverage and nutrition segment through both the dairy and fruit sectors while generating more downstream economic opportunities,” he said.
President Mnangagwa revealed that Zimbabwe’s economy has recorded average annual growth of 5.5 percent since the opening of the company’s first industrial line, with the manufacturing sector projected to grow by 3.4 percent.
“The manufacturing sector is expected to anchor this thrust through a projected growth of 3.4 percent. This is primarily driven by strong linkages with agriculture and mining, while capacity utilisation is now surging beyond 60 percent,” he said.
He said Government had set aside resources to support industrial re-tooling, modernisation and working capital requirements while improving the business environment.
In a major policy announcement, President Mnangagwa disclosed that Cabinet had approved the reduction of several regulatory fees and compliance costs affecting various sectors of the economy.
“In this regard, yesterday, Cabinet approved the slashing of numerous regulatory fees, licences and compliance costs, including those related to manufacturing, financial, real estate and health care sectors,” he said.
The President also welcomed Varun Beverages’ proposed investments in renewable energy generation amounting to about 500 megawatts, with solar projects earmarked for Matabeleland South, Mashonaland Central and Mashonaland West provinces.
“Ventures in the renewable energy sector are most welcome and dovetail with our quest for sustainable green industrial development,” he said.
President Mnangagwa reaffirmed Government’s commitment to creating a favourable investment environment and urged the company to utilise Zimbabwe’s strategic location and trade agreements to expand exports across the SADC region and the African continent.
“Zimbabwe is Open for Business and will continue to be a safe, secure and competitive investment destination,” he said.
In closing, the President described the new plant as “a symbol of transformation” and another important step towards building the Zimbabwe we all want.
