Savanna Tobacco, of Zimbabwe, plans to invest at least US$2 million in a tobacco leaf-processing factory in Mozambique, the company’s chief executive Adam Molai said cited by online newspaper NewsDay.
Molai said that the company had plans to expand further in Southern Africa and that in Mozambique most of the investment would be used to build the factory and buy equipment whilst remaining funding would be used for promotion.
“We sell our products in Mozambique and, taking into account the size of that market, we thought we should start local production,” Molai said.
Molai also said that the company’s turnover had been growing and was expected this year to increase by 40 percent against 2013, and that the factory’s production stood at 72 percent of installed capacity.
Savanna Tobacco exports its products to countries such as Cyprus, Angola, South Africa and Zambia.
Tobacco production in Zimbabwe returned to growth in 2009 and this year is expected to be over 200,000 tons. (macauhub/MZ)