The Sunday Mail
MAURITIAN businesses have a keen interest to invest and establish partnerships with Zimbabwean entities involved in the renewable energy sector, packaging and the chemical manufacturing industry, raising expectations that FDI inflows will continue to recover.
At a two-day conference for Mauritius-Zimbabwe buyers and sellers in Harare last week, the investors said they would pursue the local interests they had identified.
Engineering firm Prochem Limited, which mainly manufactures detergents, has already announced plans to establish a distribution plant in Harare after getting “overwhelming” support for setting up joint venture projects with local firms.
Prochem project manager Mr Kooshaal Tooree told The Sunday Mail Business they would return in January for further consultations and assessments.
“When we came here, we wanted to focus on household and water treatment chemicals. Our objective now is to have a distribution centre here with local people who understand the market better than us . . .
“If the volumes are encouraging, then we establish an assembly and production line locally because the main ingredients are available; so it does not make sense to bring in finished products,” said Mr Toore.
He said there was scope for investments in renewable energy for both domestic and industrial heating and lighting.
According to the Confederation of Zimbabwe Industries 2014 manufacturing survey report, many industrialists identified power shortages as one of the factors militating against business growth.
The country generates below 1 300MW of electricity against national demand of 2 200MW, and the shortfall leaves many individuals and businesses resorting to costly alternatives.
Prochem Ltd is also scouting for partnerships in packaging, particularly bottle manufacturing for household detergents.
Added Mr Tooree: “Zimbabwe is an agro-based economy and we import food and consumer goods. So, Zimbabweans can take advantage of that gap and export agriculture commodities.”
A Mauritian-based retailer of domestic and industrial utensils, Mr Kaviraj Neeloo, said the visit to Zimbabwe was an eye-opener that had created crucial links.
“We came here to get business and make money and we are happy because we have managed to establish links. We got lots of inquiries for our products. What is left now is to assess the business proposals we got and (await) orders. Right now our diaries are full of inquiries and contacts from Zimbabwe,” he said.
The visiting delegation — part of a 12-member team that was in the country to forge closer ties with local businesses — indicated there was scope to form joint ventures in clothing and textiles, leather and shoe manufacturing, vehicle spares and arts and craft.
“People have shown great interest in our products. They may be pricey but (they are) original, which is why they stand out. There are prospects of us coming here to set up shop,” said Mr Devanand Ramessur, a brake and clutch dealer.
Mauritian businesses already have a footprint on the local market.
Financial services group Loita Capital Partners International Limited acquired Metropolitan Bank of Zimbabwe, which has since been rebranded as Metbank, in May 2007 and it still enjoys a controlling stake to this day. AfrAsia now controls former Kingdom Bank. And investments have not been limited to the financial services sector.
Mauritian-based unit Alveir Management was a joint venture partner in Masawara Energy Mauritius, the parent company of the former BP & Shell assets in Zimbabwe.
