eBusiness Weekly
Tawanda Musarurwa
Beverages manufacturer Schweppes Zimbabwe, is currently producing at 50 percent of its installed capacity due to foreign currency shortages, which has affected supplies to domestic and export markets.In an interview with Business Weekly, Schweppes Zimbabwe managing director Charles Msipa, said this is notwithstanding high demand for its products.
“Our output and supplies to domestic and export markets have been averaging about 50 percent of actual demand due to foreign exchange constraints to secure adequate imported packaging.
“Domestic market accounts for 95 percent of our total output, with export markets making up 5 percent,” said Msipa.
“Demand in both domestic and export markets for our products (including Schweppes Still Water and Bonaqua water for domestic market) is very firm during this peak demand period.
“We are currently producing and supplying Mazoe cordials and Minute Maid juice drinks to both domestic and export markets — including Zambia, Botswana, Namibia, Mozambique and South Africa.”
Local manufacturers have been affected by foreign currency shortages, especially with regards to their need to import critical raw materials and equipment.
But foreign currency supplies are expected to improve going forward due to interventions by Government, notably the directive for banks to separate Nostro Foreign Currency Accounts (FCAs) and Real Time Gross Settlement (RTGS) FCAs.
Prior to the directive, foreign currency allocation was controlled by the Reserve Bank of Zimbabwe (RBZ) through a priority list framework to ensure equitable distribution and guarantee availability for critical import requirements.
Government has since secured a loan facility from Afreximbank to guarantee the 1:1 convertibility value of RTGS balances into the United States dollar and availability of the greenback for Nostro foreign currency accounts.
B F P to meet
domestic demand
Meanwhile, Msipa said the company’s Norton-based subsidiary — Best Fruit Processors (BFP) — will be able to meet domestic demand for tomato paste this year and cut on imports of such products into the country.
The plant has capacity to processes 4 000 tonnes of tomato paste annually.
Presently, Zimbabwe, together with other countries in the Sadc region import tomato paste from China and Egypt to narrow demand gaps.
However, the subsidiary is yet to commence tomato paste exports into the region.
“Best fruit processors has secured production of adequate tomatoes and processed adequate tomato paste to meet national requirements for tomato pastes and purées for 2018 and to contribute to import substitution.
“We have not yet started exporting the tomato paste into regional export markets in 2018 as we intend to satisfy local market requirements for tomato paste and puree first before supplying into regional export markets,” said Msipa.
Best Fruit is a joint venture between Beitbridge Juicing (BBJ) a subsidiary of Schweppes, which owns 70 percent of the business, and the Agricultural and Rural Development Authority (Arda), which holds the remaining 30 percent.
Schweppes Zimbabwe bought the processing facility from previous owners, Zagrinda and invested $3 million to boost its capacity.
