Multi-million Dr Nkomo projects start operations

08 May, 2016 - 00:05 0 Views
Multi-million Dr Nkomo projects start operations The factory where the canning plant in Esigodini will be housed

The Sunday News

The factory where the canning plant in Esigodini will be housed

The factory where the canning plant in Esigodini will be housed

Dumisani Nsingo, Senior Business Reporter
A MULTI-million tomato canning plant which was initiated as part of the late Vice-President Dr Joshua Nkomo’s industrialisation vision has started operating in Norton, with hopes that another similar project set for Esigodini will be running before the end of the year.

The tomato processing and canning factory is a public-private partnership arrangement between Zagrinda, a company owned by Arda and Development Trust of Zimbabwe (DTZ) and beverage manufacturer, Schweppes Zimbabwe.

Zagrinda is owned by Arda and DTZ on a 50-50 basis. The tomato processing and canning project together with another one, which is earmarked to start in Esigodini, Matabeleland South Province were part of the late Vice-President Dr Nkomo’s industrialisation vision, which he spearheaded through the DTZ.

The investment to be channeled towards the two projects is estimated to be over $2 million.

Arda board chairman Mr Basil Nyabadza confirmed that operations at the Norton plant started at the beginning of this month.

“We have started operations at the Norton plant and as I speak we are taking tomatoes for processing taking a total of 100 tonnes on a daily basis and we are operating at full capacity but since it is something which is just starting there might be some few challenges,” Mr Nyabadza said.

He said work at the Esigodini plant was underway with operations expected to start before the end of the year.

“We are, however, yet to start operations at Esigodini largely due to cash-flow problems and we are hoping that the successful opening of the Norton plant will assist us to expedite the launch of the Esigodini plant.

“Already 80 percent of the equipment is available and we are waiting to import the other 20 percent which is largely new technology and work is in progress and definitely by September the plant will be operational,” Mr Nyabadza said.

Around 70 percent of the manufactured products would be for the export market while the remainder will cater for the domestic market. Namibia is especially keen to find investors in tomato paste production to support its fish industry.

It has a huge industry exporting fresh and canned fish.

With a 1 572km coastline, Namibia has a strong fishery industry. Fish products represent 25 percent of the country’s exports which are primarily to Europe and Asia, mainly to industry in Malaysia, China and Japan. Its main products include cultured fish, mussels, abalone, sea cucumber and urchin. The industry has recently ventured into aquaculture to produce black and red tilapia, African catfish and carps.

Since dollarisation, Arda invested about $600 million in various projects through PPPs.

Arda, a state-owned company owns 22 estates and some of its household estates include Katiyo Tea Estates, Arda Transau Estates which was allocated to diamond mining companies operating in Marange to relocate families affected by their activities.

Arda also owns Chisumbanje Sugarcane Estate where it built a multi-million dollar ethanol plant, Green Fuel, its biggest investment since the adoption of the multi-currency system in 2009.

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