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Nqobile Tshili, [email protected]

BULAWAYO’S diversified manufacturing company, Arenel Foods (Pvt) Limited, has doubled its workforce to 600 driven by the increased production capacity after widening its product portfolio to consolidate domestic market share and grow its export footprint.

Taking advantage of the improved investment climate under the Second Republic led by President Mnangagwa, the firm has in the last few years introduced a range of new products in response to market needs while positioning itself for cut-throat competition with enhanced production efficiencies anchored on modern technology absorption.

The company has become one of the shining examples of Bulawayo’s re-industrialisation drive as it has transformed from traditional sweets and biscuits production lines to venture into mealie-meal production and is in the process of installing a bread oven as it sees more business opportunities in the country while doubling employment figures.

Other products include salad cream, corn snacks, instant porridge, soups, cordials, carbonated soft drinks and bottled water.

Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, visited the company on Friday to get first-hand appreciation of its operations and was briefed about the growing employment figures.

Arenel Foods compliance officer Mr Stephen Ncube, took the minister through the various plants in which he showcased growth profiling with a positive impact on jobs.

He said the company now employs at least 600 workers from about 350 five years ago.

“Five years ago we were employing about 350 employees but the numbers have grown to about 600 and in terms of capacity utilisation we are about 50 percent and as the economic fundamentals improve we are likely to improve our capacity utilisation,” said Mr Ncube.

“We have acquired state-of-the-art equipment and we are actually expanding. We are buying more equipment, more plants and we are in the process of installing and commissioning a new biscuit oven and also a new bread oven, which will be our new product line. We are expanding and we are in the process of commissioning a pasta plant.”

The senior company official said Arenel was seeing a lot of investment opportunities at home hence it continues to pour out money into the economy with US$8 million having been injected into the business five years ago out of a total investment of US$26 million pumped in so far. Mr Ncube commended the Government saying accessing foreign currency through the Reserve Bank of Zimbabwe’s auction system has enabled the country’s growth. He, however, said the system needs to be fine-tuned for the benefit of the sector.

The company also raised concerns over legacy debts and power challenges, which Prof Ncube said will be quickly addressed by the Government.

Arenel Foods Limited exports products to countries such as South Africa, Botswana, Namibia, Zambia, Malawi and Mozambique. In his remarks, Prof Ncube said he was impressed by the growth rate of the company.

“I have been very impressed by the growth rate. For example, when I came here five years ago, it was a small company but it basically doubled in size.

“The footprint in terms of buildings, the number of employees from about 350 to over 600 employees that is growth averaging 20 percent a year,” said Prof Ncube.

“I’m even asking myself if our figures are correct when we say the manufacturing sector is growing at 2,5 percent per annum. I didn’t see 2,5 percent but 20 percent growth.”

He said he would take on board some of the issues that the company raised so that the Government continues to support its growth trajectory.

“This is an old company that goes back to the 1940s and 1950s, so I wanted to find for myself how they have expanded and also assess which policies seem to have assisted them and I have been very impressed,” said Prof Ncube.

“I also wanted to understand their challenges so that we can keep changing our policies so that we can continue fine-tuning and unblocking the blockages.”

The minister also visited the newly commissioned Baker’s Inn plant in Belmont, which has modern and automated equipment to improve efficiency and productivity.

“The quality of technology speaks to the depth of industrialisation that is taking place in Zimbabwe. I’m seeing robot-controlled machinery, they acquired their equipment through South Africa from Europe,” the minister noted.

“It is state-of-the-art equipment for this type of business. To see this bread being made in the way it is being done and the volumes of bread that are being made here is really impressive.

“The plant supplies the entire southern region; Bulawayo, Matabeleland North, Matabeleland South, Midlands, so, it is a very good coverage,” said Prof Ncube.

He said the Government has supported the company’s retooling processes through duty-free importation of equipment and availing foreign currency through the auction system.

Prof Ncube commended Baker’s Inn for leading the sector in reducing the price of bread to US$1 at the beginning of the year.