eBusiness Weekly
Tinashe Makichi
Singapore-based Wilmar International and India’s Midex Group have announced plans to invest in Zimbabwe’s sugar industry.
The local sugar industry is currently dominated by South African-owned Tongaat Hullet Zimbabwe.
Surface Wilmar Zimbabwe CEO Sylvester Mangani told the Business Weekly that the plan to venture into the sugar industry is part of the group’s long-term investment plans in the country.
“The scope is there to venture into sugar provided an environment for that investment is provided by Government,” said Mangani.
For decades the closely integrated Tongaat Hullet operation had a monopoly on sugar (and ethanol) production in Zimbabwe. But there have been some new entrants who are upsetting the current status quo and generating new forms of sugar politics in the Lowveld.
Economically, sugar remains vital for Zimbabwe. Together with tobacco, these export commodities have played a huge role in generating foreign currency and their contribution to the country’s gross domestic product has been significant.
At the core of Wilmar’s strategy is a resilient integrated agribusiness model that encompasses the entire value chain of the agricultural commodity processing business, from origination and processing to branding, merchandising and distribution of a wide range of agricultural products.
It has over 450 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The Group is backed by a multinational workforce of about 92,000 people.
Wilmar’s portfolio of high quality processed agricultural products is the preferred choice of the food manufacturing industry, as well as the industrial and consumer food catering businesses.
Following an investment by the Singapore-headquartered company in partnership with the Midex Group, local cooking oil manufacturer, Olivine Industries is slowly crawling back from the wilderness following the completion of its $15 million Phase One projects, which includes the revival of its margarine plant.
