Zimpapers Logo

Golden Sibanda Senior Business Reporter
NESTLE Zimbabwe has invested $30 million since 2011 to increase production of its Cerevita and Cerelac cereals as the company looks to increase exports to the region.

Newly appointed regional manager for Zimbabwe, Zambia and Malawi Mr Ben Ndiaye said plant production capacity expansion was in preparation for exports to Malawi and Zambia.

The new regional boss replaced Mr Kumbirayi Katsande, the former cluster manager for the Nestlé Equatorial Africa south cluster (Zimbabwe, Zambia and Malawi) who was appointed chairman of Nestlé Zimbabwe (Pvt) Ltd with effect from October, 1 2014.

A Senegalese national, Mr Ndiaye has 26 years’ experience in the Nestle group.

Mr Ndiaye said apart from increasing capacity of the Cerelac and Cerevita manufacturing lines, the company had also invested towards general upgrade of operating efficiencies of the factory and construction of a new office block and laboratory.

“Exports to Zambia and Malawi are being stepped up. Part of the factory expansion is to enable us to produce for exports to these markets,” he said in response to e-mailed ques- tions.

Mr Ndiaye said Nestlé has invested heavily in expanding its production capacity and enhancing distribution of its products over the last four years, which shows confidence in the country.

He reckons that, as applicable to almost any businesses in the country to remain competitive, they must reduce the cost of doing business. “Reduction of waste is one of our key strategies so that we offer our consumers quality products at a competitive price.

“Like all investment projects during the short term, financial costs and depreciation rates are high and only start reducing as production increases in the medium to long term,” he said.

The fact that Nestlé is investing and has been in Zimbabwe for 55 years, Mr Ndiaye said, meant Zimbabwe had opportunities for business growth based on consumer loyalty to its brands. Nestle specialises in the manufacture of nutrition, health and wellness products .

In response to enquiry on the present condition of the company, Mr Ndiaye said Nestlé Zimbabwe was a company with a strong reputation with its customers, consumers, suppliers and other stakeholders and this will continue to be strengthened.

It also has dedicated employees whose commitment to the success of the company is commendable.

“As any company operating in an increasingly volatile world, we have to ensure business growth and profitability while driving efficiencies in cost management,” he said.

However, he said that any business had periods of low economic activity, but strong presence and quality brands that satisfy customers, help to ride over short-term challenges.