Zimgold builds Bulawayo plant, eyes exports

Cooking oil producer Zimgold Oil Industries is investing in a new oil extraction and refining plant in Bulawayo as part of efforts to expand production capacity and position itself for regional export growth.

The new facility is expected to strengthen the company's presence in the domestic market while creating additional capacity to support expansion into regional markets under the African Continental Free Trade Area (AfCFTA).

The investment comes as Zimbabwe seeks to revitalise local manufacturing, reduce dependence on imports and increase exports through regional trade agreements.

Speaking during a recent tour of the company's Harare operations, Zimgold chief operating officer Rodrek Musiyiwa said the firm had established itself as one of the country's leading cooking oil brands and was now looking to grow beyond the local market.

"We are happy that our brand is one of the major brands in the market and that we are producing enough to meet demand," said Musiyiwa.

"In fact, some players are now looking at exporting. This is a positive development because we have enough for Zimbabwe and, as I have just said, we are adding extra capacity."

Musiyiwa said the company was currently operating at full capacity and had secured land in Bulawayo for the construction of a modern facility that would handle both oil extraction and refining.

"You can see that we are operating at peak capacity right now and can meet market demand. We are also putting up a new plant in Bulawayo," he said.

"We are happy that we found the space and land to build a brand-new plant that will handle both oil extraction and refining. You will find us in Bulawayo very soon. The team is busy putting it together and, at the right time, we will bring it to market."

The new plant is expected to increase local edible oil production, create employment opportunities and improve Zimbabwe's capacity to serve growing demand across Southern Africa.

Musiyiwa said restoring Zimbabwe's status as a manufacturing hub would require closer collaboration between industry and government to address the high cost of doing business.

"We really want Zimbabwe to become a manufacturing hub again, and we can achieve that through efficiency and cost management," he said.

"We are saying industry should work with the authorities to identify all the areas where these costs arise and begin streamlining them."

He noted that progress had already been made through the review of licence fees and other charges affecting manufacturers.

"We are happy that we have been able to identify some of the costs associated with doing business. Some licence fees and other charges are being reviewed, and that is a positive step," Musiyiwa said.

"Anything that can be removed from our production costs is welcome, and we are happy for this process to continue through a review of the entire production cost structure so that it becomes more competitive."

The investment comes amid growing competition in Zimbabwe's cooking oil industry, with several brands now competing for market share.

"We are happy that there are now probably eight or nine players in the sector and several brands on the market," Musiyiwa said.

Industry and Commerce Permanent Secretary Tadeous Chifamba said the government was keen to support local companies seeking to expand into continental markets through AfCFTA.

"We were having a conversation on how we can look beyond the national market because we are part of Africa and the African Continental Free Trade Area, which is a US$3.5 trillion market with a growing population of more than 1.5 billion people," said Chifamba.

He said the ministry would continue working with industry players to enhance competitiveness and help Zimbabwean products gain greater access to regional and international markets.

The Bulawayo investment is expected to play a significant role in strengthening local manufacturing capacity while positioning Zimgold to take advantage of expanding trade opportunities across Africa.