The Sunday News
Njabulo Bhebe, Business Reporter
ONE of the country’s largest tea and beverage producers, Tanganda Tea Company is set to tap into the South African market through its packed tea product as it seeks to consolidate its position in the region as the largest producer of tea.
Tanganda Tea Company is among the many Meikles Limited Group-owned companies. In its latest trading update the company revealed that plans of making inroads into the South African market were now in motion with funds for promotion purposes already secured with approval from the Reserve Bank of Zimbabwe (RBZ).
“The much-needed RBZ authority to increase promotional spend in South Africa has been secured. This will help to support market penetration efforts to grow packed tea exports,” said Group executive chairman, Mr John Moxon.
According to the Food Agriculture Organisation (FAO) South Africa’s black tea export market is worth about R20 million a year, while the country imports about 16 million kilogrammes of tea a year for domestic use. The Group also noted the good performance in export of its other products such as macadamia nuts, avocados as well as coffee.
“Export earnings from macadamia nuts, avocados and coffee grew by 78 percent from US$4,5 million in the prior year to US$8 million in the year ended 31 March 2020. As a percentage of total exports, these three crops contributed 43 percent up from 25 percent in the prior year. Contribution of the high value crops to the company’s export earnings is expected to rise to 60 percent by March 2022 as the bulk of them reach maturity. In volume terms, macadamia and avocado export sales grew by 129 percent and 39 percent respectively,” said Mr Moxon.
In a bid of ensuring that production continued despite the electricity cuts that bedevilled the country in the beginning of the year, the company engaged in a massive solar project with some stages having been completed while others expected to follow in the coming months.
“To mitigate the inefficiencies caused by power shortages in the country, the company has embarked on a 7,5 MW solar project covering all estates and Mutare factory. Phases 1 to 3 of the project covering Ratelshoek, Tingamira and Jersey estates are already under implementation. Ratelshoek’s 1,8 Mega Watt solar plant is expected to be completed by September 2020. Tingamira’s 1,6 Mega Watt and Jersey’s 2,0 Mega Watt plants are expected to be completed by December 2020. By end of December 2020 we would have implemented 72 percent of the project. This project is expected to result in an efficient and integrated power supply system that will give impetus to the growth and maturity of our high value crops and efficient crop processing,” he said.
