Notes From Africa: Dairibord, Tomato Jos, ReelFruit, Nile Breweries, Varun Beverages
Here's the latest in ESM's regular series, Notes From Africa, which brings you the latest retail, consumer goods and food and beverage stories from across the African continent. Past editions can be found here.
Ghana: Government Launches Cassava And Yam Processing Plant
The Ghanaian government has inaugurated a 10 million cedi ($1.6 million) yam and cassava processing unit in the Krachi East District of the Oti region. The factory has an hourly processing capacity of 120 yams into chips in its first phase of development. The second phase of the project, expected for 2022, will enable the installation of a processing line of cassava into French fries and snacks, requiring 700 tonnes of raw material per year. The factory is expected to generate 254 jobs, according to local media reports.
Zimbabwe: Dairibord To Unveil New Milk Processing Plant
Zimbabwean dairy products manufacturer, Dairibord Holdings, plans to commission a new milk processing unit in the second half of the current financial year. With a total cost of $1.5 million, the plant, which will produce mainly ice cream and yogurt, is intended to replace the main processing unit based in Harare, which is considered less efficient. This project is part of a new expansion strategy initiated by the company to get a larger share of the dairy market.
Nigeria: Tomato Jos To Boost Corn And Soybean Production
Nigerian agribusiness company Tomato Jos plans to launch a $9.2 million agricultural project, with $1.2 million in co-financing from USAID, to boost maize and soybean production in the city of Kaduna. The project will run for three years and is expected to benefit 4,000 smallholder farmers, who will work as contract farmers with Tomato Jos. These farmers will be trained in modern farming techniques to ensure the quality of their crops and increase their productivity. They will also receive funding to fully manage their farms. At the end of the project, it is expected that 3,600 tonnes of corn and 400 tonnes of soybeans will be produced. In addition, the financing will enable the Nigerian company to increase not only its grain storage capacity but also improve its operations and productivity.
Uganda: Nile Breweries To Boost Local Cassava Production
The Ugandan subsidiary of brewing giant AB InBev, Nile Breweries Limited, has signed a five-year memorandum of understanding with the National Agricultural Research Organisation (NARO) to boost commercial cassava production in the country. This partnership aims to improve the quality and quantity of locally-produced cassava, which will be used to produce beer. To this end, the two partners plan to identify the best cassava variety suitable for beer production. NBL operates two plants, located in Jinja and Mbarara, with a total production capacity of 3.6 million hectoliters of beer per year.
Zimbabwe: Varun Beverages Unveils Packaged Drinking Water Production Line
In Zimbabwe, the local subsidiary of Varun Beverages has commissioned a production line for packaged drinking water. At a total cost of $12 million, the unit will be able to produce 15 million bottles for consumption each month. This new investment is set to bring the company's total production capacity for drinking water and non-carbonated beverages to 66 million bottles per month. In 2020, Varun Beverages Zimbabwe recorded sales of $93 million and an after-tax profit of $22 million.
Nigeria: ReelFruit Raises $3 Million For Expansion
Nigeria's leading dried fruit snack brand, ReelFruit, has secured $3 million in funding. The financial support will enable the company to increase its monthly dried fruit production capacity from six to 30 tonnes. To this end, the manufacturer is to acquire a new processing plant in Ogun State, which is expected to generate 200 direct jobs. To sustain a steady supply of good quality raw materials, the company plans to implement an agricultural extension program involving 250 registered mango and pineapple growers.