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Source: Is Varun’s pursuit of Dairibord a game-changer or risky takeover? – herald

Nelson Gahadza

VARUN BEVERAGES’ emergence as the frontrunner to acquire a controlling stake in Dairibord Holdings represents one of the most significant corporate developments in Zimbabwe’s food and beverages sector in recent years.

The company is one of the largest global franchisees for PepsiCo, a leading American multinational food and beverages corporation.

Founded by Indian billionaire Ravi Jaipuria in 1995, it manufactures, bottles and distributes a massive portfolio of beverages — including Pepsi, Mirinda, Mountain Dew, 7Up and Aquafina — across 10 countries.

The multinational recently signed a revised agreement extending its PepsiCo bottling licence until April 30, 2049, from the earlier expiry date of April 30, 2039, according to a regulatory filing issued by the company.

The firm’s African footprint now spans Zimbabwe, South Africa, Zambia, Morocco, Lesotho, Eswatini and the Democratic Republic of Congo, while it also holds distribution rights in Namibia, Botswana, Mozambique and Madagascar.

Varun has invested more than US$100 million into its Zimbabwe operations and plans a further US$650 million investment into fast-moving consumer goods (FMCG) manufacturing, agriculture and renewable energy.

The company recently opened a US$40 million snacks, juice and dairy manufacturing complex, including a Cheetos production facility and a juice and dairy blend plant, marking another major investment in Southern Africa’s consumer goods market.

On the other hand, Dairibord Holdings is a leading manufacturer and marketer of dairy products, foods and beverages in Southern Africa.

Listed on the Zimbabwe Stock Exchange, the group operates several subsidiaries: Dairibord Zimbabwe, Lyons and NFB Logistics.

It manufactures dairy and non-dairy foods, including yoghurts, ice creams, condiments, sauces and spreads (via Lyons Zimbabwe).

Its beverages arm produces cordials, dairy blends and ready-to-drink beverages, while the logistics business operates a dedicated transport and logistics arm to manage its regional supply chain and exports.

If successful, the transaction would be more than a mere change in ownership.

It could reshape Dairibord’s strategic direction, alter the competitive landscape of the dairy industry and redefine the future of one of Zimbabwe’s major consumer brands.

Market analysts say the proposed acquisition presents a delicate balance between opportunity and risk.

While Varun could inject fresh capital, advanced technology and world-class operational expertise into Dairibord, questions have arisen regarding the potential impact on local dairy farmers, employees, minority shareholders and competition within the sector.

The speculation follows a cautionary statement issued by Dairibord advising shareholders that three major investors — Equivest Asset Management, Mega Market and Mutare Mart & Exchange — are negotiating the disposal of their combined shareholding of more than 51 percent to an unnamed third party.

If the deal materialises, it will trigger a change of control of the company.

Although the prospective buyer has not been officially revealed, market sources say Varun Beverages is in a commanding position to acquire the stake and has reportedly been quietly accumulating additional shares on the open market.

Varun continues to spread its tentacles in Zimbabwe following its entry in 2018 when it established a bottling plant in Harare.

Since then, the Indian multinational has transformed the soft drinks industry through aggressive pricing, sustained investment in production capacity and one of the country’s most extensive distribution networks.

Industry observers believe the investment firm’s strengths could now be extended towards revitalising Dairibord and positioning it for long-term growth.

Economist Mr Walter Mapfumo believes the acquisition could significantly enhance Dairibord’s competitiveness if supported by sustained investment.

“Dairibord would immediately benefit from access to a larger capital base, enabling investment in modern equipment, production expansion and product innovation.

“Varun also brings global operational experience, efficient procurement systems and stronger supply chain management. These capabilities could substantially improve Dairibord’s competitiveness both locally and within regional export markets,” he said.

Mr Mapfumo said the partnership could help reposition Dairibord amidst increasing competition from imported dairy products while creating opportunities to diversify into higher-value consumer goods.

However, he suggested that preserving Dairibord’s longstanding relationships with local milk producers should remain a strategic priority.

“The dairy value chain depends heavily on local farmers. Any restructuring that weakens these relationships could undermine raw milk supplies and negatively affect rural livelihoods,” he said.

Market observers also view the proposed acquisition within the broader trend of consolidation across Africa’s fast-moving consumer goods sector.

“Large multinational companies are increasingly pursuing strategic acquisitions instead of building businesses from the ground up because acquisitions provide immediate market access, established brands and existing distribution networks,” said one investment analyst who declined to be named.

“Dairibord already possesses one of Zimbabwe’s strongest consumer brands. Combined with Varun’s financial strength and operational expertise, there is significant potential to unlock long-term value.”

Economist Mr Eddie Cross said Dairibord had played a pivotal role in developing Zimbabwe’s dairy industry over a long period.

“Dairibord was responsible for building Zimbabwe’s dairy industry and by the time of independence in 1980, it had more than 800 suppliers, processed about 250 000 tonnes of milk annually and employed around 3 500 people.

“It supplied the entire country with a wide range of dairy products through factories in Harare, Bulawayo, Gweru, Kadoma, Mutare and Chipinge, supported by distribution centres in every major town . . . ,” he said.

“While I am saddened to see control of this once great company potentially pass to Varun, the investor has demonstrated remarkable enterprise in every sector it has entered. It is also a major dairy operator internationally. I, therefore, believe Zimbabwe stands to benefit from its investment.”

Financial analyst Mr Tinevimbo Shava said Dairibord’s production systems could undergo significant transformation through automation and advanced manufacturing technologies.

“Modern processing equipment improves efficiency, reduces wastage and enhances consistency in product quality.

“Automation across production lines can minimise downtime, improve inventory management and strengthen food safety through enhanced quality assurance systems,” he said.

He said investments in digital manufacturing technologies would also improve traceability throughout Dairibord’s supply chain, allowing better monitoring of milk collection, processing and product distribution.

According to Mr Shava, cold-chain logistics and packaging technology are among the areas likely to benefit immediately.

“Improved refrigeration systems and modern packaging technologies would extend product shelf life, reduce post-production losses and enhance export competitiveness.”

He added that Varun had already demonstrated exceptional capabilities in manufacturing efficiency, procurement and route-to-market execution.

“Dairibord’s distribution network could become significantly more efficient by leveraging Varun’s nationwide logistics infrastructure, enabling products to reach retailers faster while reducing transportation costs.”

Mr Shava also highlighted the potential procurement efficiencies arising from Varun’s global sourcing relationships and economies of scale, which could help reduce input costs and improve operational margins.

Despite the optimism surrounding the proposed transaction, analysts caution that large acquisitions rarely come without challenges.

They argue that any post-acquisition strategy should prioritise strengthening Zimbabwe’s dairy value chain by improving farmer productivity through access to finance, technical support, modern farming practices and enhanced milk collection infrastructure.

Mr Mapfumo said the long-term success of the transaction would ultimately depend on maintaining strong partnerships with local milk producers.

“The long-term success of Dairibord cannot be separated from the sustainability of Zimbabwe’s dairy industry. Investment should strengthen, rather than replace, local supply chains,” he said.

The proposed acquisition also comes at a time when many local manufacturers continue to grapple with ageing production equipment, constrained access to affordable capital and rising operating costs.

Varun has been associated with PepsiCo since the 1990s and has, over two-and-a-half decades, consolidated its business association with PepsiCo, increasing the number of licensed territories and sub-territories covered by the company, producing and distributing a wider range of PepsiCo beverages, introducing various stock keeping units in the portfolio and expanding the distribution network.

The company manufactures, distributes and sells a wide range of carbonated soft drinks (CSDs), as well as a large selection of non-carbonated beverages (NCBs), including packaged drinking water sold under trademarks owned by PepsiCo.

PepsiCo CSD brands produced and sold by Varun include Pepsi, Pepsi Black, Mountain Dew, Sting, Seven-Up, Mirinda Orange, Seven-Up, Nimbooz Masala Soda and Evervess.

PepsiCo NCB brands produced and sold by the company include Tropicana Slice, Tropicana Juices (100 percent and Delight), Seven-Up Nimbooz, Gatorade, as well as packaged drinking water under the brand Aquafina.

Varun holds franchises for various PepsiCo products across 27 states and seven union territories in India (responsible for 90 percent of the beverage sales volume of PepsiCo India).

It is also the franchise holder for the territories of Nepal, Sri Lanka, Morocco, Zambia and Zimbabwe.

Varun Beverages Limited is part of the RJ Corp group, a diversified business conglomerate with interests in beverages, quick-service restaurants, ice creams and healthcare.

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Source: Key infrastructure developments to fire re-industrialisation of Bulawayo – herald

Judith Phiri, Business Reporter

INFRASTRUCTURE development in Bulawayo has moved a gear up with key new projects dotted around the city expected to transform it into a modern, productive and inclusive city that attracts investment and create employment.

The most recent ones are the state-of-the-art US$12 million investment for the Fairgrounds Retail Centre within the Zimbabwe International Conference and Exhibition Smart City and the US$3 million Franciscan Centre that speak to Bulawayo’s goal of attaining smart and sustainable city status by 2030.

The developments are expected to drive the city’s re-industrialisation efforts signalling a promising future for the city.
Speaking at the US$3 million campaign drive for the Franciscan Centre Bulawayo ground-breaking ceremony, Bulawayo Mayor Councillor David Coltart said such developments were critical for the city.

The Franciscan Centre is going to feature conference facilities, a chapel dedicated to prayer, counselling and spiritual renewal as well as administrative office and a commercial kitchen.

“This is yet another construction project in a long history of important work done in our community. All that you are doing today is reaffirming your established commitment to our city, but this is of particular importance for the development of stable minds, which undoubtedly will contribute to the stability and development, not just of the city, but of our nation in future,” he said.

He said the development was timely and that the construction of the centre would create a new window of hope for those in need as well as feed into the city’s re-industrialisation efforts.

The Mayor said that as they seek to grow the city and attract new investment, there is a need for strong educational institutions, but also strong medical institutions such as Mater Dei Hospital.

“I want to end by assuring you that, as a city, we will provide you with whatever support we can as you take steps towards setting up this very important facility. I hope that together we can create an institution that does not just provide professional counselling services, but actually goes to the extent of saving lives, as well as stabilising families and our entire community,” he said.

Responding to enquiries from this publication on another major development taking shape in Bulawayo — the US$12 million investment for the Fairgrounds Retail Centre — the city’s Town Clerk, Mr Christopher Dube, said Bulawayo’s investment landscape has been attracting interest.

The development is to rise within the Zimbabwe International Conference and Exhibition Smart City (ZICES), being delivered by the Terrace Africa Project, which will create a modern shopping complex comparable in scale and design to Harare’s Greenfields Retail Centre, commissioned by President Mnangagwa.

Mr Dube said: “The Fairgrounds Retail Centre milestone is highly important for Bulawayo’s investment landscape because it signals tangible progress in unlocking strategic land for productive economic use.

“It will be a modern retail development that will enhance the commercial profile of the city, create employment opportunities during construction and operation, stimulate supply chain activity, and improve service convenience for residents and visitors to the ZICES.”

He said importantly, it also sends a strong message to both local and international investors that Bulawayo is open for business and ready to host transformative investments aligned with our vision of becoming a Smart and Sustainable City by 2030.

Mr Dube said that to attract more projects of this magnitude, continued focus must be placed on maintaining an investor-friendly environment with efficient municipal processes.

“Continued focus must also be placed on servicing land with critical infrastructure such as roads, water, sewerage and power connectivity, strengthening public-private partnerships, and promoting policy certainty and ease of doing business reforms,” he added.

“There is also a need for packaging bankable investment opportunities in retail, housing, manufacturing, tourism, logistics and ICT sectors, while we showcase Bulawayo’s strategic geographic position as a regional trade gateway linking Zimbabwe to SADC markets and beyond.”

Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Regional Manager, Mr Mduduzi Ncube, said there was a need to attract more high-value investments into Bulawayo.

“The entry of Terrace Africa into Bulawayo is both encouraging and instructive. To attract more projects of this magnitude, there is a need for continued strengthening of the ease of doing business environment through efficient regulatory processes, competitive cost structures and investor-friendly policies at both local and national levels,” he said.

“Strategic public-private partnerships, infrastructure development, and proactive investment promotion will also be key. Importantly, sustained engagement between the business community and local authorities will ensure that Bulawayo remains responsive, competitive, and aligned with investor expectations.”

He said, as Zida reported an increase in investment inflows into Bulawayo in Q4 2025, this was a critical indicator of the city’s re-emergence as a viable industrial and commercial centre.

Mr Ncube said it reflects growing confidence in the policy environment and the city’s economic potential.
Dr Shynet Chivasa, an institutional business analyst at Lupane State University, said such projects support the city’s policy‑driven re‑industrialisation and service‑sector modernisation.

“These reinforce Bulawayo as a viable destination for retail, logistics and tourism‑linked investments. They create employment and improve Bulawayo’s gross domestic product (GDP). Employment creation during construction is also another benefit of the projects,” she said.

She said that to attract more projects of this calibre, Bulawayo needs to move beyond isolated deals and build a repeat‑investor proposition.

Dr Chivasa said there was a need for consistent regulatory and fiscal incentives, by streamlining approvals, providing clear zoning and tax‑incentive frameworks for mixed‑use developments (retail, hotels, offices), and ensuring predictable returns on capital.

Economic commentator Mr Morris Mpala said these developments were welcome and key to the city as it tries to emerge from yesteryear’s downturn in fortunes.

“It ignites and excites other investments into the city. Bulawayo needs to showcase what investment opportunities it has to potential suitors and show that it can carry investments of this quantum in terms of return on investment (ROI). Generally, the City of Bulawayo needs to look at the ease and cost of doing business within its influence and above all bring water to the city,” he said.

He said these go a long way to cementing the status that Bulawayo is a safe destination for capital and that needs to be attained by all means necessary, while the city needs to reimagine its new industries and forgo some yesteryear business models that no longer serve it.

Other major capital infrastructure development projects currently under way in the city encompass diverse sectors, from roads to transport, education, industry and commerce, among others.

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Source: Preach hard work & production, President tells Church – herald

Samuel Kadungure

Mutare Bureau

PRESIDENT MNANGAGWA yesterday challenged the Church to encourage a culture of hard, honest work and productivity as the country accelerates its economic transformation and development agenda.

Addressing thousands of local and international pilgrims gathered for the Johane Marange Apostolic Church’s Big Sabbath Service at the Mafararikwa Shrine in Marange, Manicaland province, yesterday, the President said the Church had a critical role to play in promoting productivity and supporting national development efforts.

The service, which preceded the church’s annual Passover (Pasika) gathering, attracted thousands of worshippers from across Zimbabwe and beyond.

President Mnangagwa said the country’s economic aspirations could only be realised if citizens across all sectors, including religious communities, actively participated in productive activities that create wealth, improve livelihoods and strengthen food security.

“Our nation is marching on to Vision 2030. I challenge the Church to make loud its voice and encourage hard, honest work, production and productivity in all sectors, as we develop our country,” said President Mnangagwa.

“Kereke ngaiparidze kukosha kwekushanda nesimba. Ngaiparidze rudo, kubatana nekuda nyika yedu. Mwari akataura kuti tichadya cheziya. (The Church should preach the importance of hard work. It must preach love, unity and patriotism. God says by the sweat of your brow you will eat your food.) Our national culture, values and identity as well as the correct moral upbringing of our children are important.

“The Church has a part to play. Tinovimba nekereke kuti ibatsire kuti tirambe tichichengetedza tsika dzedu nehunhu hwakanaka senyika. Ndimi chiyedza chenyika; rambai muchibwinya (I hope the Church will help us preserve our cultural values and norms as a country. You are the light of the world; continue shining).”

President Mnangagwa also said the Church should continue providing spiritual guidance while encouraging its members to contribute meaningfully to national development through enterprise, innovation and increased production.

He commended the Johane Marange Apostolic Church for investing in key sectors such as education, entrepreneurship, skills development, sports, recreation and mining, saying the initiatives were helping to improve livelihoods and stimulate economic growth.

“That is commendable,” he said.

He encouraged the church to expand its empowerment projects, describing them as practical examples of how faith-based organisations can contribute to national development.

“The many empowerment projects you have undertaken demonstrate how your church contributes towards the growth of our economy.

“Tinotenda. Well done.”

The Government, he added, would continue implementing reforms designed to remove barriers to production and support the growth of businesses and entrepreneurship.

“Hurumende icharamba ichidzikisa mitero yemalicences and levies kuti vanhu vawane kushanda zvakareruka (The Government will continue to review downwards fees and levies to improve the ease of doing business),” he said.

“Our ZANU PF party policies will continue to promote access to more economic opportunities, wealth creation, jobs and a better quality of life for our people.

“Mhuri yeZimbabwe uyai, ngativakeizve nyika yekwedu, kuti tinyadzise vavengi vedu. (Let’s come together to build our country as Zimbabweans in order to put our enemies to shame). I call upon the Church to mobilise and organise congregants to participate in empowerment programmes being championed by the Government. Vemakereke, musasarire kumashure (The Church must not be left behind).

“Let us all be frontrunners in building the Zimbabwe we all want, household by household, village by village, ward by ward and district by district.”

The President also called for increased focus on agriculture and food security, urging farmers to prepare for possible climate-related challenges, including an El Niño-induced drought, by increasing the production of traditional grains and adopting climate-resilient farming practices.

He reiterated that under the ZANU PF-led Government, no one and no place would be left behind, stressing that food security remained a national priority.

President Mnangagwa also applauded Manicaland province for its growing contribution to the national economy, citing achievements in wheat production, dairy farming and manufacturing.

He encouraged businesses and communities in the province to embrace technology, expand exports and take advantage of emerging economic opportunities to further drive growth.

The President thanked John Marange Apostolic Church high priest and spiritual leader Mutumwa St Nimrod Taguta, church leaders, traditional leaders and ZANU PF officials for promoting peace, unity and prayer for Zimbabwe and the African continent.

President Mnangagwa was accompanied by Chief Secretary to the President and Cabinet Dr Martin Rushwaya, Defence Minister Oppah Muchinguri-Kashiri, Minister of State for Manicaland Provincial Affairs and Devolution Advocate Misheck Mugadza, Youth Empowerment, Development and Vocational Training Minister Tino Machakaire, legislators and senior Government officials.

The annual Passover gathering, held from July 1 to 17, is one of the largest religious events on the church’s calendar and attracts thousands of pilgrims from Zimbabwe and neighbouring countries.

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Source: Growing reserves guarantee stability of local currency — Prof Ncube – herald

Debra Matabvu

ZIMBABWEANS can now keep their savings in Zimbabwe Gold (ZiG) as the local currency has become stable owing to a combination of measures that are boosting confidence in the unit and encouraging its wider use, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.

He said the foreign currency reserves supporting ZiG, which had grown to US$1,6 billion by June, were being built from 5 percent of the surrender amount from exporters and royalties from minerals.

Responding to questions from The Sunday Mail, Prof Ncube said the reserves were critical in guaranteeing a stable exchange rate of around US$1:ZiG26.

“Building foreign reserves is a critical pillar of bolstering currency and general macroeconomic stability,” Prof Ncube said.

“In addition to the mineral royalties that go into foreign reserves, 5 percent of the surrender amount from exporters goes towards building reserves. This has gone a long way in adding to the $1,6 billion worth of reserves. This amount is more than 100 percent of the entire domestic currency, ZIG, in circulation. This has also reduced the gap or premium between official exchange rate and the parallel rate, and, hence, reducing harmful arbitrage activities. Confidence in the ZIG has improved as a result and one can now keep their savings in ZIG.”

However, one of the most significant interventions has been the reduction of the Intermediated Money Transfer Tax (IMTT) on ZiG transactions from 2 percent to 1,5 percent, while retaining the 2 percent rate for transactions conducted in United States dollars.

“The reduction in the IMTT from 2 percent to 1,5 percent for ZIG transactions, while maintaining it at 2 percent for USD transactions, has supported and encouraged the public to transact more in ZIG,” added Prof Ncube.

“This increases demand and use of the local currency, the ZIG. These differentiated transaction cost rates have turned IMTT into, not just a revenue mobilisation measure, but a potent instrument for the promotion and support of the local currency.”

The Government has also introduced tax compliance measures aimed at deepening the use of the local currency within the corporate sector.

Companies are now required to pay 50 percent of their quarterly corporate income tax obligations in ZiG, while taxpayers are expected to settle taxes in the currency in which they trade.

“Paying half the corporate taxes in ZiG means even if the company trades in USD, it will be forced to sell some of the USD to acquire ZiG in order to meet the tax obligation. Thus, business has embraced the ZiG, and demand for it is increasing.”

Minister Ncube says these measures have created additional demand for the local currency, particularly among businesses that generate most of their revenues in foreign currency.

The growing uptake of ZiG is viewed as an important step towards the country’s long-term objective of establishing a fully functional domestic currency system anchored in stability, confidence and sustained demand.

With reserves growing, exchange rate volatility easing and the share of transactions conducted in ZiG steadily increasing, policymakers believe the foundation for a durable and widely accepted local currency is becoming firmly set.

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Source: No tribe is superior to the other: VP Mohadi – herald

Raymond Jaravaza

Bulawayo Bureau

ZIMBABWE is erasing the colonial-era hierarchies of culture, replacing them with a revolutionary equity where no culture is superior to another and where no one and no place is left behind, Vice President Kembo Mohadi has said.

He said this while addressing thousands of people gathered at the Mposi High School grounds for the second edition of the revived Lemba Cultural Annual Festival in Danga, Mberengwa, yesterday.

“Today we stand on this historic, vibrant and sacred soil of Mberengwa with a deep sense of humility, revolutionary pride and profound respect. We join the great Lemba people, the timeless custodians of an ancient sacred and fiercely guarded legacy. It is not merely a ceremonial duty but a pilgrimage to the very wellspring of our African civilisation. We are erasing the colonial-era hierarchies of culture, replacing them with a revolutionary equity where no culture is superior to another and where we leave no one and no place behind,” said VP Mohadi.

Communities such as the Lemba, he added, have an important role to play in supporting and transforming indigenous knowledge systems into opportunities that benefit both present and future generations.

“Today (yesterday) is more than a cultural gathering. It is a celebration of identity, heritage, resilience and the invaluable contribution of the Lemba people to the history, civilisation and development of Zimbabwe and the Southern African region.

“The celebrations strike at the very heart of who we are as a sovereign nation. It speaks to our past, defines our present and charts a luminous path towards our shared destiny. Heritage is not a dead relic of a long-gone era; it is the living and breathing DNA of our national consciousness.”

He said the celebrations are the golden thread that connects people to their ancestors, anchors their identity in the storms of globalisation and fuels their collective resolve to build a prosperous Zimbabwe.

VP Mohadi was accompanied by Sport, Arts, Recreation and Culture Minister Anselem Sanyatwe; Minister of State for Midlands Provincial Affairs and Devolution Owen Ncube; Chief Mposi and the Special Adviser to the President on Monitoring and Implementation of Government Programmes and Projects, Dr Joram Gumbo.

Also present were legislator Tsitsi Zhou, Chief Ngungumbane, other traditional leaders, Government officials and villagers.

The Lemba are predominantly found in Mberengwa and other parts of Midlands, Masvingo province and across South Africa.

The community’s cultural ties remain strong, with a delegation having travelled from South Africa to join members from 12 clans, namely, Hamisi, Seremani, Madi, Sadiki, Mani, Haji, Sarifu, Nemanga, Bakari, Tovakare, Dumha and Hasani, in festivities that marked the revival of their ancestral traditions.

The Lemba Cultural Annual Festival marked a significant milestone following efforts to revive the event last year.

The celebrations were held under the theme “Our heritage and our strength: Lemba people in united Zimbabwe”.

The festival was last organised in 1972, according to one of the event organisers, Dr Takavafira Zhou.

“Prior to the revival of the annual celebrations last year, the last Lemba Cultural Festival was held many years ago. Much work has been invested and we are proud to say that this year’s event was a resounding success, judging by the large number of people who travelled from all corners of the country and from South Africa,” said Dr Zhou.

Chief Mposi said they were committed to preserving the culture and heritage for future generations.

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