Thursday, June 1, 2023

‘Tongaat pivotal for Zim’s economic turnover’

….circulates millions of United States dollars across the country

Beatific Gumbwanda

CHIREDZI-Zimbabwe’s sole sugarcane producer, Tongaat Huletts Zimbabwe (THZ), which is the biggest employer outside government, has a much large potential to help Zimbabwe’ economic turnaround through its support to more than 200 indigenous companies under its supply chain system.
More than ZW$ 20 billion and close to US$ 100 million dollars is circulating annually across the country.
Masvingo Chamber of Small to Medium Enterprises (SMEs) in collaboration with the Lowveld Business Development Association (LOBDA) organized an annual supplier’s conference with Tongaat Huletts Zimbabwe (THZ) which was held at Clevers Hotel in Chiredzi recently, where the sugar giant indicated that they are circulating billions of dollars to indigenous companies through its supply chain system.
Weston Jemwa, THZ’s Supply Chain and Procurement Executive said the company has close to 30 000 line items from both Hippo Valley and Triangle which they purchase annually from its various procurement sectors in the Carpex and Packaging, Logistics, General, fleet and mill which suppliers should select their specialty from.
“We have a sustainable procurement policy where we tray and balance all our suppliers nationwide as we are a national company. 50% of the sugar we produce is being consumed in Harare, so as a company we try to balance our suppliers from across the country as we also need them to support us.
“We have close to 30 000 line items where suppliers choose from, even local companies, from Masvingo Province, should have a piece from that cake. We do not need a situation whereby one asks me what to supply. A lot of people are vying for low hanging fruits as most companies are scrambling towards sugar transportation, that is not only the service we need from local companies. Imagine during that time of quail birds, everyone wanted to have them, and some even sold their cattle to get into that business,” said Jemwa.
Jemwa also said from April to date, they have an expenditure of close to US$ 100 million and ZWL$20 billion which was paid to close 200 companies in Zimbabwe, with 119 companies being from Masvingo province.
“We have 119 local suppliers from Masvingo province who from April to date have paid ZW$ 2 billion and US$4.3 million while ZWL$16 billion and US$60 million has been paid to other suppliers across the country,” added Jemwa.
Masvingo Chairman for Chamber of SMEs, Venancio Kurauone also said the company should also act as guarantors to the local suppliers to help their growth.
“The company should have an Enterprising Department to capacitate local suppliers by being their guarantors in order for them to be able to supply huge quantities of products without financial hiccups,” said Kurauone.

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