Associated Foods Zimbabwe Ltd (AFZ) is Zimbabwe’s leading producer of peanut butter, jams, nut spreads, and canned tomatoes and fruit. After successfully installing a new state-of-the-art production line, the company is now eyeing the export market in addition to serving the domestic market.
AFZ was established on 1 January 2016, as a result of a merger between Zimbabwe’s leading producers of jams and peanut butter – Honeywood Enterprises Ltd and Spread Valley Ltd. Norfund’s 17 million NOK investment contributed to partly-finance the merger and provided capital expenditure to facilitate improvements, such as the installation of a new peanut butter production line. In addition, Norfund’s investment also provided working capital.
”The new state-of-the-art production line is
all computerised, with human hands only at the
packing stage. More importantly, the quality of our
products has vastly improved. It is now world class,”Simba Nyabadza, Director and majority shareholder at AFZ
By combining the manufacturing strengths of Honeywood Enterprises, and the sales, marketing and distribution skills of Spread Valley, the new company is now benefiting from economies of scale and is adding value for stakeholders, including its customers. The company is now also able to developing products for export.
AFZ plans to expand its local raw material sourcing via outgrower schemes. This will result in increased employment throughout the agribusiness value chain in Zimbabwe.
Improved productivity and product quality will increase the consumption of local produce and thereby reduce dependence on imported goods. This is especially important as most African countries struggle to build their foreign currency reserves, and must therefore promote processing and consumption of quality local goods, while limiting imported goods.