The Manica Post

Nestlé Zimbabwe: It’s back to serious business

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EDITOR - Nestlé Zimbabwe is back to serious business. The giant Swiss firm is not looking back on meeting the satisfacti­on of its market. At a time other companies are whining about a harsh economic environmen­t, Nestlé is casting its eyes beyond the horizon.

Nestlé has gone extra strides in capacitati­ng its supply chain. The organisati­on has embarked on a one million dollar heifer project to boost milk production in the country. The heifer project is meant to benefit diary farmers across the country. The country has for the past years importing milk from neighborin­g Zambia and South Africa to meet domestic demand.

Over and above procuremen­t of the heifers outside the country, the company is also bankrollin­g the training of beneficiar­y farmers to ensure maximum output. Nestlé Zimbabwe has departed from the rogue investor attitude of crying foul over everything yet there is much more to do inside the business environmen­t. Are there no businesses in Syria today? If businesses are still open in Damascus, why should an organizati­on with a sound management fail to operate in Zimbabwe which is teeming with hoards of peace?

Enemies of Zimbabwe have since the land reform been harping about a failing agricultur­al sector. And then what? If the agricultur­al sector is failing to meet local demand, is that not good enough reason to celebrate the birth of a market? The Zimbabwe Associatio­n of Diary Farmers report that the country’s annual milk production stood at 120 million liters while production is hovering slightly above half the amount.

It is a misnomer for a country with such a temperate climate to be found wanting in milk production. It is organizati­ons with a mindset similar to Nestlé’s that see opportunit­y where others are seeing gloom. In the same mediocre thinking, some have been rubbishing the land reform program which has seen a complete overhaul of fortunes for some industriou­s farmers.

Opportunit­y does not climb up a tree to be identified, instead, it is those with scanning eyes that see opportunit­y in the dark alleys of fortune. Such are Nestlé’s eyes.

The government of Zimbabwe has through the Ministry of Industry and Trade gazetted a trade instrument barring foreign produced goods that the Zimbabwean industry has the capacity to produce. This instrument, known as Statutory Instrument 64 of 2016 has triggered a domestic demand boon for local manufactur­ers especially in the household consumptio­n goods.

Companies that relocated their manufactur­ing plants elsewhere in the region are salivating and going green with envy over the protected domestic market in Zimbabwe. Case in point, local petroleum jelly manufactur­ers are smiling all the way to the bank since the departure of one major petroleum jelly company supplying the domestic market. The said organizati­on has moved manufactur­ing operations from its Zimbabwean firms into the region and has since seen the death of its Zimbabwean market by the hand of SI64.

Closing manufactur­ing plants and moving machinery into neighborin­g countries left scores of workers jobless and without any means of survival.

It is quite disturbing to see organizati­ons interested only in enjoying the purchasing power of a people they do not want to support.

If such organizati­ons were aware of the consumptio­n potential of the said market, howbeit that they ignore their need for jobs?

Government-Industry relations must be mutually benefittin­g and any organizati­on that is not conscious of this reality must not expect to enjoy government’s benevolenc­e. Meanwhile, all kudos go to Nestlé for complement­ing government’s agrarian reform and for its sensitivit­y to customers with varied buying powers through designing products in different packages, quality and pricing regimes.

Chigumbu Warikandwa.

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