National Foods is recording significant growth in production and capacity utilisation following the successful commissioning of three new manufacturing plants under a US$23 million recapitalisation and expansion programme.
The country’s leading food processing company commissioned a biscuit manufacturing plant, pasta production facility and cereal plant last year as part of efforts to boost output, enhance efficiency and strengthen its position in the market.
The investment is already yielding positive results, with the new facilities operating at high-capacity levels and contributing to increased revenue and employment creation.
National Foods Group Chief Executive Officer, Mike Lashbrook said production across the new plants continues to rise steadily, reflecting strong demand for the company’s products.
“Our production levels have steadily increased. The pasta plant is operating at an average of 80 percent. The biscuit plant is at 100 percent and the cereals plant at 90 percent. Our monthly revenue as a group is now between 12 and 15 percent. Since we commissioned the plants, our workforce has increased by 300 people, which translates to around 15 percent. This speaks to good growth on this side,” said Lashbrook.
Encouraged by the strong performance of the new facilities and a favourable business environment, National Foods is preparing for another major investment drive aimed at expanding its manufacturing footprint.
Lashbrook revealed that the company plans to invest a further US$25 million in additional production facilities beginning next year, while also setting its sights on regional and international export markets.
“I must say the business environment is quite ok. This is increasing our appetite to do business here. We intend to establish more production plants to the tune of US$25 million, beginning next year. We also intend to make inroads into the export markets once our production peaks,” he said.
The expansion by National Foods reflects growing confidence among investors in Zimbabwe’s manufacturing sector, which continues to benefit from efforts to modernise industry, improve productivity and enhance competitiveness.
Government has identified industrial recapitalisation as a key component of economic transformation under the National Development Strategy 2 (NDS2), which seeks to accelerate industrial growth, create employment opportunities and increase value addition across key sectors of the economy.
Speaking at the Annual Exporters Conference in Bulawayo earlier this year, President Emmerson Mnangagwa reaffirmed Government’s commitment to creating an enabling environment for investment and industrial development, highlighting measures aimed at boosting local production and expanding export capacity.
As National Foods continues to ramp up production and invest in new facilities, the company is positioning itself to play an increasingly important role in Zimbabwe’s industrialisation drive and export-led growth agenda.
