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Zimbabwe: Cairns Foods to Export to DRC, UK
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Financial Gazette (Harare)
1 May 2008
Posted to the web 2 May 2008
Shame Makoshori
Harare
ZIMBABWE Stock Exchange-listed Cairns Holdings says its flagship subsidiary, Cairns Foods, is to embark on an export drive into the Democratic Republic of Congo (DRC) and will revive its canned fruit exports to the United Kingdom.
The Reserve Bank of Zimbabwe owns 65 percent of Cairns Holdings, which in turn controls 100 percent of Cairns Foods and 60 percent of biscuit maker, ME Charhons.
Francis Dube, the marketing director for Cairns Holdings, told The Financial Gazette this week that the food giant had studied the risks associated with the DRC market and was convinced it could gain a sizeable market share in the mineral rich economy.
"The export sector is a strategic sector for us," he said. "Our exports in the region have been mostly to Zambia, followed by South Africa.
"We are in the process of opening up in the DRC. In Botswana, our exports have been growing," added Dube.
A number of Zimbabwean entrepreneurs have burnt their fingers in the DRC after plunging into the market without thorough market research.
Despite being attracted by the big spending Congolese, Zimbabwean companies face communication-related problems in the DRC.
Top financial institution, FBC Bank, which had established a bank in that country, later pulled out under unclear circumstances.
"Logistic are a problem in the DRC, but there is certainly high demand for our products like wines and spirits.
"There is money in the DRC; it is only the logistics. If you do not manage your logistics you lose money," he said.
Dube said exports to the United Kingdom, which had been suspended because of the unavailability of tin plate, would soon resume.
He said it was imperative to give serious attention to exports given the foreign currency shortages facing Zimbabwe.
"Exports make up 10 percent of Cairns Foods business but we intend to grow (them) very seriously.
"We have two major targets to achieve before the next Zimbabwe International Trade Fair next year -- to grow the export business to 20 percent, and to fully establish our Wonder Foods brands," he said.
Export trade promotion body, ZimTrade, has been encouraging local companies involved in the manufacture of leather, food, wines and other products that are in high demand in the DRC, to minimise local risk by venturing into the export market.
ZimTrade's advice is premised on the need to capture the DRC market much earlier than South African companies following the end of a four-year civil war.
In the year ending August 31, 2007, Cairns Foods achieved a 14 percent growth in sales, contributing $81 billion to the holding company's attributable profits.
Cairns Holdings chief executive Phillip Chigumira said Chompkins maintained its dominant 80 percent share of the potato-processing sector.
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