The Sunday Mail
Tawanda Musarurwa
Agro-processing firm Schweppes Holdings’ strategy to enhance its internal value chains will save the country at least US$1 million in imports, a senior company official has said.
The group’s import substitution strategy, which includes the establishment of an agribusiness division last year, is also expected to provide impetus for the revival of the local agricultural sector.
Schweppes Zimbabwe commercial director Unaiswi Nyikadzino said the strategy is based on activating agricultural activity as a first step to drive industrial growth.
“Import substitution is also a key part of our business strategy, where current initiatives will save us US$1 million worth of imports, which is quite significant in this forex-thirsty environment,” she said.
The group has, resultantly, invested significantly in the horticultural value chain directly and indirectly to support business growth, not only for its business, but other local manufacturers as well.
Schweppes’ tomato and citrus processing plants in Beitbridge and Norton have helped to facilitate import substitution for many local manufacturers using tomato paste and fruit juice concentrates as inputs in their business operations.
“The key to success in our field for import substitution and increase in exports is increased fruit production. That’s currently the only limiting factor to significant volume and value growth. There is need to unlock the land and climate potential to drive industrial growth,” she said.
“Based on this realisation, we set up an agribusiness division last year whose mandate is to run with public -private partnerships and our own internal investments into horticultural feedstock production.
“We continue to invest in agronomy practices to improve yields, quality and output of fruit and ,thus, incomes for out-growers and feedstock supply for our processing plants,” she said.
Agro-based industrialisation is a key component of the Zimbabwe National Industrial Development Policy (2019 to 2023), which was launched recently.
And import substitution is a trade and economic policy which advocates replacing foreign imports with domestic production.
These agricultural products provide critical raw materials for a number of industrial firms. In respect of the ZNIDP, one of its key goals is “coordinating to strengthen linkages between agricultural producers and the agro-processing industry.”
In line with the aims of the ZNIDP, Nyikadzino added: “We will continue to contribute fully to economic development in Zimbabwe for upstream and downstream economic impact as well as to penetrate new global markets.
“This business thrust has us working closely with the agricultural ministry and other relevant authorities to stimulate increased fruit production, which has export potential from both a fresh and processed perspective ,as well as reducing forex burden of inputs for local manufacturers.
“We have significant competitive advantage as a nation for the growth of agribusiness and there is need for public and private sector investment in that area,” she highlighted.
Schweppes Holdings Africa Limited is a diversified local business with significant investments in the last 10 years in both beverage manufacturing and fruit processing through its subsidiaries — Beit Bridge Juicing and Best Fruit Processors.
