Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Nestle not compliant yet

Nestle not compliant yet

By Editor
Thursday, 08 December 2011 10:40

HARARE – Nestle Zimbabwe Private Limited (Nestle) is yet to submit a revised 
indigenisation compliance proposal, chief executive Kumbirai Katsande has 
Indigenisation Minister Saviour Kasukuwere rejected Nestle’s initial 
proposal last month saying it was insufficient and fell far short of the 
minimum 51 percent indigenous shareholding as required by the Indigenisation 

Nestle had proposed to dispose of 25 percent equity to the Nestlé Zimbabwe 
Pension Fund, while the remaining equity would go to the firm’s employees 
under an employee ownership and empowerment scheme.

The Swiss-backed food processor has been under spotlight after a spat with 
President Robert Mugabe over the rejection of milk from his Gushungo Dairy 
Farm citing that it was substandard and contaminated, prompting Mugabe to 
publicly assign Kasukuwere to nationalise the company.

Speaking at the company’s commercial dairy revival project in Kwekwe on 
Tuesday this week, Katsande said the company was yet to resubmit their 
proposal pending housekeeping issues at the food giant.

“We are yet to submit our proposal. The direction we have is that we will 
soon submit,” he said, adding he had no capacity to answer questions 
relating to the compliance plan since he was answerable to the company’s 

According to government’s indigenisation requirements for the manufacturing 
sector, foreign-owned firms must cede only 26 percentage shareholding to 
locals, and work to increase the share holding to 51 percent over four 

Details of the resolution indicate that the foreign manufacturing firms may 
maintain the 26 percent threshold for locals, but must increase the 
threshold to 46 percent in the third year before finally meeting 51 percent 
in the fourth year.

Nestle is set to spend over $14 million over a period of seven years towards 
resuscitating the country’s  dairy herd, through contracting small scale 

Katsande said capacity utilisation among dairy processors remains below 30 
percent due to reduced milk production and so the company said it was 
committed to improve it by working with local dairy farmers.

The programme will establish milk production and collection centres 
throughout all the provinces of the country.

“Working with local dairy farmers can revive the country’s dairy industry to 
the great heights of yester years when national milk production was 260 
million litres per year and the country had over 200 000 dairy cows,” he 

Currently Zimbabwe’s national milk production is a measly 50 million litres 
while the country’s national herd of dairy cows is less than 40 000.

Nestle plans to face lift its Harare plant at a total cost of $27 million 
are steaming ahead despite calls by government for the firm to fully 
indigenise, in a move that indicates confidence in its local operations.


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