SOMI expanding to optimize its value chain
MATSAPHA – Companies like the Eswatini Oil Mill Industries (SOMI) are expanding in order to have their value chain completed within the boundaries.
Such expansions have been the government’s call to local companies to have all their production chains localised in order to reduce the importation of raw material, among other things.
Yesterday, the Minister of Agriculture, Mandla Tshawuka, visited the company in Matsapha where he was updated about the expansion processes and the entire productions of the company.
The minister was shown the entire production lines within the company from processing to packaging. It was noted that the company also produces the bottles for the cooking oil on its own.
SOMI produces cooking oil and green bar soaps, among other things. The company produces the common cooking oil brands known as Somi, Yebo cooking oil, Sun Sun and others. During the visit yesterday, the minister stated as a ministry they were pleased with such expansions as it was their intention to see the development of value chains locally.
He said, therefore, the production and processing of soybeans that the company was embarking on, was a typical good example of value chain developments that government wanted.
Imports
He said it was noted that the company imports a lot of its raw material, which were soybeans. He said in response to that, they have made an agreement that in the next five years, they would like to see the importation of soybeans eliminated completely.
During his visit to the company, the Minister of Commerce, Industry and Trade, Manqoba Khumalo, said SOMI was among the companies that brought millions of Emalangeni into the country in direct foreign investments. He said SOMI was one of the projects in-line with the economic recovery strategy that was launched in 2019.
According to Khumalo, SOMI brought E450 million in foreign direct investment into the country. “The company received government’s support in the provision of land for this project. This project is a collaboration effort whose key stakeholders are SOMI, South African companies and a Singaporean company,” the minister stated.