President Mnangagwa lauds Varun Beverages USD20m investment.

Harare (New Ziana) – President Emmerson Mnangagwa on Thursday lauded Varun Beverages for expanding local soft drinks production through a new US$20 million investment and assured the company and others of strong government support.

The company, which produces a range of soft drinks, topped its initial 2018 investment of US$30 million to expand production in response to growing local and regional demand.

President Mnangagwa, commissioning the expansion project, said it was in line with the government policy thrust of upping local production to reduce imports, and increasing exports instead.

The new US$20 million investment in production capacity had significantly increased output, to meet local and regional demand for the company’s products.

The Indian company, which set up shop in Zimbabwe a few years ago, exports to several regional countries, and is eying more markets on the continent.

President Mnangagwa said more markets were opening on the continent through the operationalisation of the African free trade agreement, and companies like Varun Beverages were positioning themselves strategically to capture a good chunk of this.

“When I initially came here to officiate the USD30 million first phase, it was then Varun outlined the organization’s vision regarding investment in Zimbabwe,” he said.

“In October 2019, I again came to commission the second phase before committing to the third phase in 2021. We talked at length and I promised you that Zimbabwe is open for business and we would go out of our way to promote investment.

“I am happy to say you’re walking the talk. All this technology is coming to Zimbabwe for the first time, I wish to congratulate you,” he said.

President Mnangagwa said investment such was Varun Beverages’ was critical for local economic growth, and job creation, and government would do everything possible to both encourage and support it from a policy standpoint.

Africa, he said, was now a liberalised market of more than one billion people, and government was encouraging local producers to tap into this more.

“This is in addition to the already existing markets created under various bilateral and regional trading agreements such as Comesa and Sadc. We must ‘make’ in Zimbabwe for the world,” he said.

Indian ambassador to Zimbabwe, Vijay Khanduja said Varum Beverages was an example of strengthening economic relations between the two countries.

He said the new investment by the company was testimony of the conducive environment the government was creating for business in Zimbabwe.

“Varum Beverages is an example of a successful Indian investment in this country where over USD500 million has been invested with other companies. These investments are a pillar in strengthening the relationship between the two (countries),” Khanduja said.

Company chairman, Ravi Jaipura said Varun Beverages was looking at introducing new products such as juices and dairy-based soft drinks in response to market demand.

New Ziana