The SADC regional integration drive has led to a surge in investments and industrialisation, driven by efficient transport logistics, collaboration and improved ease of doing business, manufacturers have said.
The Fertiliser, Seed and Grain (FSG) company, a major business in Mashonaland Central, supports the climate-proofed Presidential Inputs Scheme as a significant supplier. Its Zimbabwe operations use around 50 percent local raw materials, but with operations in four SADC countries, FSG can move raw materials around when sourcing materials.
On Wednesday, Minister of State for Mashonaland Central Provincial Affairs and Devolution Christopher Magomo, accompanied by officials from the Ministry of Industry and Commerce, toured the FSG plant in Bindura.
As part of the Meridian Group with parallel operations in Zambia, Mozambique and Malawi, FSG has invested US$1,2 million this year towards expanding its fertiliser processing plant.
The investment led to the acquisition of two lines of granular machines, boosting production to an impressive 1 500 tonnes per day from 900 tonnes per day.
With a production capacity of 350 000 tonnes a year, FSG presently meets half the national fertiliser demand.
During the tour, FSG managing director Mr Steve Morland said the port of Beira facilitates the movement of raw materials to Zimbabwe, contributing to regional industrialisation.
"Regional logistics are helping in moving our products to Zimbabwe. The bulk material is backloaded into rail wagons in Zimbabwe," he said.
"This has resulted in industrialisation in the region. We share ideas, strategies and leverage on logistics with our sister companies in different SADC countries. We envision a better and more efficient railway service so that we can move our products at a better price. One of our challenges is congestion in Beira, but it is not bad news because it can be improved."
Since setting up in Bindura in 2010, FSG has fostered strong relationships and received support from the Government and local leadership.
Presently, the company is producing Compound D for the Presidential Inputs Scheme, with an annual output of 150 000 to 170 000 tonnes, along with 150 000 tonnes of top-dressing fertiliser.
With a workforce of 250 permanent employees and 200 seasonal workers, FSG sources around half of its raw materials locally, including lime, clay, sand and phosphate rock.
Minister Magomo reaffirmed FSG's status as a company of national interest given Zimbabwe's agrarian economy.
He commended FSG for investing US$6 million in infrastructure development and US$20 million in raw materials, effectively bolstering the provincial gross domestic product.
The railway system needs to be improved to enable bulk transport of raw materials, agreed Minister Magomo-- a development that would reduce pressure on the recently rehabilitated roads.
"I am impressed that they are also using local raw materials and this contributes to lower prices and accessibility of the product," he said.
"They employ a large number of people across the SADC region. The company is one of the industrialisation investments in the country," he said.
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About 150 companies are set to participate during the SADC Industrialisation Week which will take place ahead of the 44th SADC Summit to be held in August this year in Zimbabwe.
The SADC Industrialisation Strategy and Roadmap was formulated in the context of existing national and regional policies and specifically the August 2014 Summit held in Victoria Falls, Zimbabwe.
It was held under the theme: "SADC strategy for economic transformation: Leveraging the region's diverse resources for sustainable economic and social development through beneficiation and value addition."
The summit directed that industrialisation takes centre stage in SADC's regional integration agenda.
