Business / Companies
'We are not going anywhere,' BAT tells Zim Govt
11 Jun 2014 at 15:12hrs | Views
British American Tobacco Plc has engaged the Government to commit its long-term presence in the country.
BAT Zimbabwe managing director Lovemore Manatsa yesterday said the Government was one of the key stakeholders that the company was engaging to reassure them that they had no plans to exit the country.
Manatsa was speaking on the sidelines of a tour of the company's Southerton plant by Information, Media and Broadcasting Services Minister Jonathan Moyo this morning.
"As BAT Zimbabwe, as BAT Plc we are not divesting out of Zimbabwe. If anything we are investing . Over the last four years we have put in $5,4 million into infrastructure, marketing and distribution part of the business.
"So that was the basis of our engagement with key stakeholders including the Minister of Information to put across our point that we are not divesting from Zimbabwe," said Manatsa.
The MD said BAT's commitment to Zimbabwe was express in its full compliance to the country's indigenisation laws.
"At this stage we are fairly confident that we are considered an indigenous player in the country through two vehicles our Tobacco Empowerment Trust which owns 10,74 percent of the company and 10 percent which is owned by the Employee Share Ownership Trust which are both independent of BAT as a company and already up and running," he said.
In 2012, it ceded a 26 percent stake to Zimbabweans in compliance with indigenisation laws, compelling foreigners to give majority shareholding to locals.
The 20,74 percent shareholding alloocated to the two empowerment vehicles translated to four million shares worth a combined $20 million.
Meanwhile the company, which has an installed production capacity of 2,3 billion sticks per annum said it is currently operating at around 70 percent of that capacity.
This makes it one of the most effective industries in the country at present. Average industrial capacity currently stands at just below 40 percent, according to the Confederation of Zimbabwe Industries.
Manatsa said they can easily reach full production capacity, but have had to cut back on production due to limited local demand.
"Right now we are running about 70 percent of that capacity reason being a function of demand...we have got more than enough capacity to supply the market, it is a function of demand or the consumer offtake in the market," he said.
BAT Zimbabwe managing director Lovemore Manatsa yesterday said the Government was one of the key stakeholders that the company was engaging to reassure them that they had no plans to exit the country.
Manatsa was speaking on the sidelines of a tour of the company's Southerton plant by Information, Media and Broadcasting Services Minister Jonathan Moyo this morning.
"As BAT Zimbabwe, as BAT Plc we are not divesting out of Zimbabwe. If anything we are investing . Over the last four years we have put in $5,4 million into infrastructure, marketing and distribution part of the business.
"So that was the basis of our engagement with key stakeholders including the Minister of Information to put across our point that we are not divesting from Zimbabwe," said Manatsa.
The MD said BAT's commitment to Zimbabwe was express in its full compliance to the country's indigenisation laws.
"At this stage we are fairly confident that we are considered an indigenous player in the country through two vehicles our Tobacco Empowerment Trust which owns 10,74 percent of the company and 10 percent which is owned by the Employee Share Ownership Trust which are both independent of BAT as a company and already up and running," he said.
In 2012, it ceded a 26 percent stake to Zimbabweans in compliance with indigenisation laws, compelling foreigners to give majority shareholding to locals.
The 20,74 percent shareholding alloocated to the two empowerment vehicles translated to four million shares worth a combined $20 million.
Meanwhile the company, which has an installed production capacity of 2,3 billion sticks per annum said it is currently operating at around 70 percent of that capacity.
This makes it one of the most effective industries in the country at present. Average industrial capacity currently stands at just below 40 percent, according to the Confederation of Zimbabwe Industries.
Manatsa said they can easily reach full production capacity, but have had to cut back on production due to limited local demand.
"Right now we are running about 70 percent of that capacity reason being a function of demand...we have got more than enough capacity to supply the market, it is a function of demand or the consumer offtake in the market," he said.
Source - BH24
