Minister chides manufacturers for bypassing wholesalers

Business Review Writer

Industry and Commerce Minister Sithembiso Nyoni has chided manufacturers for bypassing wholesalers and supplying directly to retailers and the informal sector.

Nyoni said this during a tour of  National Foods in Harare, and expressed concern that the practice was “distorting” the traditional value chains and would lead to chaos in industry and commerce if unaddressed.

She said: “We are putting order in the commerce sector by ensuring that manufacturers deliver to wholesalers and these are accessed by retail (operators) rather than what is happening now, whereby companies are delivering to the informal sector.

“That is distorting that value chain. If we do not address that, we are killing the wholesalers and bringing chaos to the market.” 

The new Industry minister Nyoni explained that retail value chains created jobs and order, adding that it was Government policy to ensure the value chain was alive to sustain those jobs.

“National Foods understands this, and together we will correct this and ensure we address the distortions that are happening right now,” she said.

National Foods  is one of the largest manufacturers and marketers of food products in Zimbabwe and the Southern African region. It is owned by Innscor which acquired shareholding in National Foods in 2003 and today holds a 37.82% share with Tiger Brands holding a 37.45% share.

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