BY PRIDE MUZATRABANI CAPACITY utilisation at food manufacturing concern, Associated Foods Zimbabwe (AFZ), is set to jump to 75% from the current 35% following fresh equity investment from Spear Capital, a private equity firm.
Spear Capital is a private equity firm targeting high-growth companies across the Southern African Development Community.
Following the investment, which will be channelled towards improving operations, Spear Capital became an AFZ shareholder, the firm said in a statement.
AFZ is the producer of the Mama’s and Farmgold brands which include peanut butter, jams, snacks, cereals, baked beans and canned products.
Mama’s peanut butter is one of Zimbabwe’s most recognised basic commodity products that is now available on most supermarket shelves.
The firm said apart from enabling AFZ to introduce new products, technology and markets, the Spear Capital investment will also be channelled towards other projects in line with the country’s environmental, social and governance requirements.
“With the coming of Spear Capital, we will focus on development and implementation of the environmental and social management system,” said AFZ operations executive Joseph Mavu.
The new investment will also be channelled towards creating sustainable jobs through farmer out-grower schemes where the company sources its raw material from.
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“We work closely with local smallholder farmers who supply us with raw materials. This will reduce hunger and poverty in the societies we operate in,” said Mavu.
He was, however, not at liberty to disclose the value of the new injection.
Through the Spear Capital injection, AFZ will increase groundnuts and tomato contract farmers to 2 500 farmers from the current 1 100 farmers.
He said out-grower schemes guarantees raw materials for AFZ product ranges.
AFZ recently scooped the most improved manufacturer for the year 2021 gong at the Buy Zimbabwe 2021 awards.
The agro-processor was also voted second runner-up manufacturer of the year for 2020.
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