DEVELOPMENT of quality, affordable and resilient infrastructure is enabling industries to access markets, boosting trade as well as positioning the country to produce locally made products for the world, President Mnangagwa has said.
This enabling environment, that has been created by the Second Republic in just five years, has resulted in increased investor confidence in the country as shown by the huge appetite by foreign companies to invest in Zimbabwe — thereby enhancing prospects of becoming an upper-middle-class economy by 2030.
At the same time, various policies that are being championed by President Mnangagwa — such as the “Zimbabwe is Open for Business” mantra and “Friend to all and enemy to none” foreign policy thrust — have seen several multi-nationals flocking to Harare, helping in the modernisation and industralisation of the country.
Coupled with the “Nyika Inovakwa Nevene vayo” thrust, this will enable the country to leapfrog its development, anchored by the National Development Strategy 1 (NDS1) which positions the private sector at the forefront of economic empowerment, inclusive growth and employment creation.
This was manifest yesterday when President Mnangagwa officially opened the US$20 million Varun Beverages water and bottle closure plant in Harare, bringing the company’s total investment in Zimbabwe since 2018 to more than US$1,1 billion.
“I am enthused to be with you today to commission the US$20 million fourth phase of the Varun Beverages expansion project. The fact that you have invited me to officiate at this commissioning ceremony demonstrates that you are indeed walking the talk with regards to fulfilling your pledges and commitments. It also highlights the confidence which Varun Beverages and other investors have in the progressive policies and conducive business operating environment being fostered by the Second Republic,” he said.
The President added that the vibrancy of the economy, through modernisation and innovation by both Government and the private sector, bears testimony to the good and conducive policies that are in place in the economy.
“Such investment projects as the one we are witnessing today, as well as those by other investors, are quite crucial as they significantly contribute to economic growth and create employment for our citizens.
“The fact that Varun Beverages Zimbabwe will no longer be importing but manufacturing preforms locally, is commendable. This is in line with my Government’s policy of import-substitution and export development.
“It is my hope that this investment will translate into the production of more affordable goods, while at the same time reducing reliance on imports, which saves on the much-needed foreign currency. Going forward, the rise in production capacity will enable the company to not only cater for the domestic market,” said President Mnangagwa.
The entrance of Varun Beverages, which is owned by Indian billionaire, Mr Ravi Jaipuria, has brought prices of soft drinks down, created thousands of jobs and placed Zimbabwe as a key player in the regional soft drinks industry.
President Mnangagwa tours the Varun Beverages water and bottles closures plants.
Since 2018, after heeding President Mnangagwa’s “Zimbabwe is open for Business” mantra, Varun Beverages has invested more than US$1 billion in the country and its beverages have brought prices of soft drinks down.
This confidence in Zimbabwe is borne from industry’s appreciation of the conducive environment for investment.
“The development of quality, reliable, sustainable and resilient infrastructure in energy, roads, water as well as other regional and trans-border infrastructure, among others, is enabling access to markets, thereby facilitating trade and gradually increasing demand for our products.
“This is part of my Government’s initiatives to focus on industrialisation as well as increasing our production and productivity capabilities in a highly competitive global landscape. This is also in line with Sustainable Development Goal 9 on building resilient infrastructure, promoting sustainable industrialisation and fostering innovation,” said President Mnangagwa.
“Our friend to all and enemy to none policy thrust with the external world is resulting in a systematic transformation of value addition and beneficiation through private sector led growth.
“As such, the manufacturing sector is now on a rebound and capacity utilisation has increased sharply. This has also seen locally made products continually increasing their share on shop shelves around the country.”
Furthermore, the President assured investors that his administration “is continually working towards improving the sustainable investor-friendly environment”.
“My Government is continually working towards improving the sustainable investor-friendly business environment. This in turn, should attract more foreign direct investment into our country and generate employment in all sectors of the economy.”
He urged local authorities, who have often been the weak link, to step up to the plate and create enabling environments for investors.
“On their part, local authorities are implored to play a pivotal role in ensuring that businesses access consistent and efficient services to foster local industralisation. It is my expectation that the local authorities will proactively work towards attracting new investors through the provision of affordable serviced land and other incentives.”
President Mnangagwa said Government officials must shake-up and catch on to innovation which can leapfrog the country’s development while at the same time urging Varun Beverages to take advantage of the one billion people market that is available through the African Continental Free Trade Area.
“This is in addition to the already existing markets created under various bilateral and regional trading agreements under Comesa, and SADC. We must ‘Make in Zimbabwe’ for the world,” he said.
To achieve this, the President said Zimbabwe has adopted a global value chain approach which is increasing its participation in the regional and global supply chain.
Women and the young are the major beneficiaries of Varun Beverages’ investment with 2 000 benefiting directly and more than 20 000 indirectly.
The ceremony was attended by Government ministers and the Chairman of Varun Beverages, Mr Jaipuria, who expressed his delight with the enabling environment that has been created by the Second Republic.
“It was in June 2018 when the President inaugurated the Varun Beverages plant with one production line and a total production capability of approximately 12 million bottles in a month. We promised His Excellency and the people of Zimbabwe that we would be investing more in Zimbabwe and shall develop the market to ensure our Pepsi products reach every small village and every Zimbabwean should be able to get our products at arm’s length.
We added four more production lines and four backward integration lines to make it a total of nine production lines with a total capacity of 80 million bottles and cans per month. This expansion could obviously happen with affordable prices, more consumers, latest go to market systems and investment in the retail infrastructure and credits extended to the distributors and wholesalers,” he said.
The fourth phase that was commissioned yesterday will produce 550 bottles per minute, while the fifth phase is an investment in a state-of-the-art warehouse facility.
“With this new expansion we will increase our export of beverages, preforms and plastic closures to Zambia, the Democratic Republic of Congo, Botswana, Malawi and other neighbouring countries, which will bring sizeable foreign exchange into Zimbabwe,” Mr Jaipuria said. – The Herald
