Innscor Africa is stepping up investment in Zimbabwe’s manufacturing sector, planning to deploy about US$139 million in capital expenditure in the current financial year, after spending US$121.2 million in the year to June.
The planned investment represents a further increase in capital spending by the diversified food and manufacturing group, which raised its investment from US$74 million to US$121.2 million in the previous financial year, a 64% increase.
A significant portion of the new spending will be directed towards expanding production capacity across Bakery, National Foods, Colcom, Irvine’s and Rutanhi, Innscor’s beverages business, which now incorporates the recently acquired Tanganda.
The investment push comes as the group enters the new financial year from a stronger financial position. Innscor reported US$1.24 billion in revenue for the year ended June, up 14%, while profit increased to US$102 million, roughly double the previous year.
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The company said the expansion programme would be financed primarily through internally generated funds, supported by debt capacity.
“Strong operating cash flows, together with available borrowing facilities,” will provide the funding base for the investment programme, according to the company.
The scale-up is significant because Innscor is committing more capital even after substantially increasing investment in the previous year. The group’s capital expenditure has therefore risen from US$74 million to US$121.2 million and now to a planned US$139 million, reflecting a sustained push to expand productive capacity rather than a one-off investment cycle.
The businesses receiving investment span some of Zimbabwe’s largest food-manufacturing operations, from flour and baked products to meat, poultry and beverages. The inclusion of Tanganda also broadens the investment programme following Innscor’s acquisition of the beverage business.
The strategy comes against a wider push by Zimbabwean manufacturers to increase local production and reduce dependence on imported finished products.
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