Economic pulse racing
MUTARE is set to have its own wheat milling plant, thanks to the massive US$25 million investment by Fast Moving Consumer Goods (FMCG) distributing company, Mega Market.
Once completed, the plant will be one of the biggest in the country, with a capacity to mill 300 tonnes per day. Construction is already at 40 percent and the six silos being constructed along with the plant will have a storage capacity of 20 000 tonnes of wheat. Mega Market managing director, Mr Shiraan Ahmed told The Manica Post that the wheat milling project will be a game changer as it will cascade positive benefits down the value chain and grow Manicaland’s economy in line with Government’s thrust of achieving an upper middle income economy by 2030.
“We want to satisfy the local demand and then expand into regional markets with focus on Zambia and the Democratic Republic of Congo. DRC is a huge consumer of flour. Right now they are getting most of their wheat from South Africa, so if we tap into that market, we will definitely make huge profits,” he said.
Mega Market has applied for Special Economic Zone Status to enable them to boost their competitiveness. With the SEZ status, Mr Ahmed said their cost of production will be much lower, hence allowing them to compete with South Africa, where most of Zimbabwe’s imports are coming from. The company will engage local farmers to grow wheat to feed into the mill and minimise wheat imports.
“We have already had discussions with some farmers and they are really keen to work with us. Hopefully, we can build on that and get sufficient wheat to feed into the mill. We will also buy whatever wheat is available from other farmers in the country and import the balance to sustain our operations,” he said.
Mr Ahmed said meeting local demand will not be a challenge as Government has already put in place some measures to increase wheat production. Zimbabwe requires at least 400 000 tonnes of wheat a year, but has been importing wheat owing to low production.
“We will definitely ensure that we meet both local and export demand because this is our biggest market. Our distribution channels are already in place,” Mr Ahmed said.
The wheat mill is expected to generate about 150 direct jobs for both skilled and unskilled personnel, and many more indirectly.
“Some of these skilled people are outside the country and this will be an opportunity for them tocomebackhome.Thereisalsoamassiveopportunity for skills development for locals who are willing to work hard and earn a living. Prospects are also bright for farmers in the region as this project will create employment in the farms and improve their productivity,” he said.
He said many other supportive industries, the transport industry for example, will also benefit fromtransportingwheatandthefinishedproduct. Dairy farmers will also get wheat bran, which can be used for stock feed.
Minister of State for Manicaland Provincial AffairsandDevolution,DrGwaradzimbasaidshe is keen to see the Mega Market project receiving all the support it can get as it is key in the development of the province.
“This is the type of development we want to see under devolution. We want to see the resuscitation and of industries so that they can grow and sustain local and foreign demand. That is the only way for us to solve the country’s economic challenges. We need production and exports — that is the thrust we have adopted in Manicaland,” said Dr Gwaradzimba.