Zimbabwe economic news roundup: Inflation, Dairiboard, Meikles
Zimbabwe on course to meet inflation target
The country is on course to meet its target inflation rate of 4.5% by year end, ac-cording to Finance Minister Tendai Biti. The month-on-month inflation rate has steadily decreased for the past few months. In August, the year-on-year inflation rate dropped 0.6% from the July rate of 4.1%to 3.6%.
Biti attributed the decline in inflation to increased competition and liberalization of the economy. – The Herald
Dairibord installs new technology
Dairibord has installed new technology to convert milk solids at its dairies in Bulawayo and Chipinge to boost production capacity. The company plans to invest a total of $5 million in capital projects this year in an attempt to increase production and market share, including more capacity to move raw milk to its milk production division.
Expected to come online in November, the investment cost the group $550 000. Capacity utilisation at Dairibord is estimated at around 35% due to shortages of raw milk supply.
The country’s monthly milk demand is approximately 5 million litres, complemented by imports from South Africa and Zambia.
Currently, the milk division is capable of providing 1.6 million litres. The company also announced plans to penetrate the Botswana ice cream market by November, following the acquisition of an ice-cream machine at its Harare depot. The new machine has the capacity to produce 12 000 sticks per hour, which is enough to supply the entire SADC region. The ice-cream unit is currently operating at 80% capacity. – News-Day
Meikles Stores restocks
Meikles Limited has embarked on an intense restocking exercise in the Meikles Stores, according to newly-appointed CEO of the Stores division, Fidelis Goredema.
Apparently, imports form a major part of the new stock, which will be sold in the company’s seven retail outlets across the country.
Goods are being delivered from Singapore, China, Mauritius and South Africa and should reach the Greatermans, Meikles and Barbours stores by the fourth quarter. – The Herald