President Mnangagwa yesterday saluted the private sector for playing an active role in the growth of the country's industrial sector and fostering a structural transformation towards an investment-driven economy.
Commissioning the Varun Beverages Phase 6 and 7 expansion projects in Harare, President Mnangagwa said the increasing number of investments destined for the country was testimony to the fact that the policies of his administration were bearing fruit.
Varun Beverages yesterday opened new carbonated drinks and water production lines as well as a warehouse facility.
"The increasing number of investments in our economy is a show of confidence in the robust measures implemented by my administration. This continues to create an enabling business environment, making Zimbabwe a more lucrative place to do business. Our concerted efforts are bearing fruits with the World Bank acknowledging Zimbabwe as one of the top global improvers," said President Mnangagwa.
"I applaud the critical role that the private sector is playing in growing the industrial sector and fostering a real structural transformation towards an investment-driven economy. Since 2018, Varun Beverages has demonstrated a consistent determination to be a leader in the modernisation of the manufacturing sector, particularly in the beverages sub-sector."
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He recounted the entry into Zimbabwe by Varun Beverages in 2018, and how the company had registered significant milestones in a short space of time.
"I recall the bold step taken by the company to make an initial investment of US$30 million in 2018. Subsequently, I officiated at various expansion milestones in December 2019, October 2021 and April 2023. The entry and gradual growth of the company has resulted in price stability and increased availability of beverage products in the market, especially during peak seasons," President Mnangagwa said.
"Today, we are celebrating the success of an international company that has been in existence in this country for only six years, with substantial investments in new manufacturing plants and industrial infrastructure. This is quite commendable and indeed a clear testimony of the resilience you have shown over these years."
President Mnangagwa, Vice President Constantino Chiwenga (centre), Defence Minister Oppah Muchinguri-Kashiri (second from left), Minister of State for Harare Province Charles Tawengwa (left), Varun Beverages chief executive Mr Vijay Bahl (third from left) and the firm's chairperson Mr Ravi Kant Jaipura (right) watch a performance by a traditional dance group at the commissioning of the company's expansion project in Harare yesterday
The President added that the latest investment by the firm will have a huge impact on Harare Metropolitan province and the whole country.
"I am informed that the investment we are witnessing today will make a notable economic impact within the province and the country at large. This dovetails with our quest to establish vibrant Provincial and Rural economies, with clear and distinct Provincial Gross Domestic Product (GDP). The production lines we are gathered here to commission will increase production capacity to 100 million bottles of sparkling and bottled water, from the earlier 80 million bottles per month," he said.
"I am also pleased to announce the laying of the foundation stone for the snacks business, which is expected to generate direct and indirect employment for approximately 1,000 to 1,200 families. Your plans to expand your business to include the production of dairy and juices products by end of 2025 are also commendable."
President Mnangagwa said Varun Beverages, through its investment in Mobile Pepsi Dispensing Units, has significantly transformed the retail landscape in Zimbabwe.
"This initiative has created employment opportunities for women and youth. The fact that the Varun Beverages team is taking further significant strides to reach customers and consumers at their doorsteps, is commendable. This aligns with our mantra, of leaving no one and no place behind," he said.
"To complement such initiatives, I urge our local authorities to consistently ensure the provision of reliable services for business as well as the general citizenry."
President Mnangagwa said over the past four years, Zimbabwe has been one of the better-performing economies in the region.
The President embraces two children who attended the Varun Beverages expansion project commissioning with their parents in Ardbennie yesterday. On the left is Vice President Constantino Chiwenga. - Pictures: Believe Nyakudjara
He called on both local and foreign investors to continue investing in the country across all sectors, leveraging on the abundant natural resources, demographic dividend, highly educated workforce and innovation hubs nationwide.
"Let me, therefore, exhort all business, industry and commerce players to diversify their operations into all provinces to the reach of grassroots communities. The approach will result in more jobs, broad-based empowerment and improved quality of lives and incomes among provincial and rural communities. Central to our developmental agenda is the issue of value addition and beneficiation of our agriculture and mining products, with a strong emphasis on nurturing and optimising our value chains as well as continued implementation of investor-friendly policies".
President Mnangagwa said he would ensure the provision of incentives to potential investors through relevant provincial authorities in line with the Government's devolution thrust and the Whole of Government-Approach.
"Going forward, I encourage Varun Beverages and other players in the manufacturing sector to explore options to increase exports of your products into the SADC and COMESA regions, taking full advantage of Zimbabwe's existing Trade Arrangements, including the African Continental Free Trade Area. I urge the banking sector to play its intermediation role and provide affordable financing for re-tooling efforts and working capital," he said.
"As you undertake other expansion and diversification projects, you are assured of my Government's support. Brick by brick, stone upon stone and step by step, let us, in unity of purpose, continue to build the Zimbabwe we want to live in, work and do business".
President Mnangagwa said as the current chair of SADC, Zimbabwe has a unique opportunity to advance the vision of industrialisation.
"I am pleased to see Varun Beverages expanding their production lines. This growth will benefit the sector by reducing the trade deficit through the expansion of local production."
President Mnangagwa interacts with Varun Beverages chairperson Mr Ravi Kant Jaipura (third from right) and chief executive officer Mr Vijay Bahl (second from right) during the commissioning of the firm's expansion project in Ardbennie, Harare, yesterday. Also present are Vice President Constantino Chiwenga (centre) and Industry and Commerce Minister Mangaliso Ndlovu (left)
Speaking at the same occasion, Vice President Constantino Chiwenga commended Varun Beverages Pvt Ltd for showing confidence in Zimbabwe by investing in the country.
"The continued investment by Varun Beverages is a welcome development as it is contributing significantly to our collective vision of achieving an upper-middle-class society by 2030. We are sincerely grateful to Varun Beverages for showing confidence in our country, reinforcing the message that Zimbabwe is indeed open for business. The presence of His Excellency, the President, as the guest of honour highlights the Government's steadfastness to foster a private sector-led economy," he said.
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Defence Minister Oppah Muchinguri-Kashiri commended President Mnangagwa for his "game-changing" mantra, "Zimbabwe is Open for Business", which she said had encouraged the private sector to make more investments in Zimbabwe.
Industry and Commerce Minister Mangaliso Ndlovu said Zimbabwe ought to capitalise on its SADC chairmanship to push for regional industrialisation.
"As the current chair of SADC, Zimbabwe has an opportunity to once again drive the regional industrialisation agenda and intensify our efforts to deliver on the National Development Strategy 1 as it approaches its final year of implementation. I am pleased to say Varun Beverages Zimbabwe, as a leading fast foods consumer goods manufacturer, has strategically adopted continuous investments to increase capacity as well as create new product lines," said Minister Ndlovu.
Varun Beverages chairman, Mr Ravi Kant Jaipura, said the firm has been embarking on a number of corporate social responsibility programmes as part of giving back to the community.
The firm's chief executive officer, Mr Vijay Bahl, commended President Mnangagwa and his administration for commissioning the expansion project.
He said Phase 6 will see production of drinks and 13 million bottles monthly.
In total Varun, Zimbabwe has the capacity to produce 100 million water bottles per month.
At least 150 Varun trucks were serving over 40,000 retailers daily, he added.
The event was attended by the Minister of Information, Publicity and Broadcasting Services, Dr Jenfan Muswere, Minister of State for Provincial Affairs and Devolution responsible for Harare Province Charles Tawengwa, India Ambassador to Zimbabwe, Mr Bumha Kumar, Chief Secretary to the President and Cabinet, Dr Martin Rushwaya, and senior Government officials.
