Zimpapers Logo

Business Reporter

OLIVINE Industries, one of Zimbabwe’s largest food producers, will commission two new production lines in August this year as the company seeks to expand its domestic and regional production capacity and food supply, chief executive officer, Mr Sylvester Mangani, said.

The new lines will produce margarine and tomato sauce.

“Between now and July, we will be receiving various pieces of machinery; some are already on the site and we are targeting to launch the new plants in August,” said Mr Mangani.

In 2019, the African Development Bank approved a US$8,25 million corporate loan to Olivine Industries to support the company’s food production expansion plan.

However, Olivine, which is partly owned by Wilmar International, one of the largest companies listed on the Singapore Stock Exchange, had to use its own resources after the regional bank delayed release of the funds.

The regional bank expressed concern over how and when the Reserve Bank of Zimbabwe would facilitate settlement of the funds owed to foreigners, also known as blocked funds it took over after Zimbabwe changed its currency in 2019.

All US dollar balances, the anchor currency under a multi-currency regime introduced in 2009, were converted to Zimbabwe dollars at a central bank prescribed exchange rate of 1 to 1 in 2019.

Zimbabwe operated a US dollar anchored multiple currency regime from 2009, after the local unit was decimated by inflation, until February 2019 when the Government reintroduced the domestic currency.

“We are happy with the progress and we confident that our August target will be met,” said Mr Mangani adding that the construction of the building was almost complete

Zimbabwe industries have continued on an upward growth trajectory anchored on the gains achieved in the past two years.

The Ministry of Industry and Commerce said it was encouraged with the current growth, also being supported by establishment of new companies.

With most of these achievements being recorded during the period of the Covid-1 pandemic, the Government is optimistic that the diversification and innovative methods being adopted by local industries will leap frog the economy in line with set objectives of Vision 2030.

Further, this is also in line with the ministry’s own strategic thrust to implement various industrialisation strategies to promote and improve the manufacturing sector contribution to the economy.

The ministry’s strategy takes into account the National Development Strategy (NDS) 1 pillar, “Moving the Economy up the Value Chain and Structural Transformation”.

Once Olivine’s production reaches full capacity, the new investment can potentially support 200 to 300 local farmers through the company’s corporate farming model.

Incorporated in 1950, Olivine is one of the largest food producers in Zimbabwe, manufacturing well-known products such as margarine, cooking oil, and canned goods.  Olivine has been bolstered by the experience and track record of its majority shareholder, Wilmar.