THE Industrial Development Corp-oration of Zimbabwe’s Agrotech division intends to go into partnership with a consortium of local businessmen to form a tobacco processing company.
The company will be registered as Africa Tobacco and is expected to be operational by the end of the year.
“In the partnership, the consortium is bringing in their expertise as they have vast experience in the tobacco industry,” an IDC official said.
The official said they were looking forward to raising US$3,6 million and IDC is contributing 30%.
“We are currently sourcing working capital of about US$600 000,” he said.”We are going to use the money to buy equipment and build the plant.”
The plant will be at Sunway City Industrial Park.
The company will be exporting processed tobacco regionally and to European markets.
In an interview, IDC group financial controller, Peter Madara, said the company intended to process the locally produced leaf tobacco to cutrag on a short- to medium-term basis and ultimately venture into cigarette manufacturing.
“The corporation is exploring the possibilities of going into partnership with manufacturers of existing brands in targeting the international market,” he said.
Agrotech is a strategic business unit registered under the IDC.
“A similar vehicle is being created under Motec Holdings to spearhead the motor componentry ventures,” Madara said.
The IDC has several other new projects under way. These include mushroom farming, tobacco and sanitary pads manufacturing.