Colcom eyes Angola

HARARE - Innscor Africa’s meat processor Colcom Foods Holdings (Colcom) plans to set up a unit in Angola.

The move is part of the Zimbabwe Stock Exchange-listed firm’s drive to expand its footprint in Africa.

Its sales and distribution executive, Thabani Dhliwayo, said the company — currently operating at below 40 percent capacity — expects the Angolan venture to be fully operational in the next two years.

“We have already established contacts in Luanda and are sending a container with samples in the next month,” he told a Zimbabwe-Angola Business Association forum.

Dhliwayo said Colcom will “use a differential strategy” for the Angolan market.

“We will sell to those who afford our products. Angolans are prepared to pay the premium price we charge,” he said, adding that the Angolan venture “is the beginning of a massive expansion project”.

Apart from Zimbabwe, Colcom also operates in Malawi and South Africa.

“At the moment we are concentrating on Angola because in this southern Africa side, we have a lot of competition,” Dhliwayo said.

According to Angolan Finance ministry statistics, the country imports about 80 percent of its requirements.

It mostly imports its meat products from Brazil.

In terms of performance, Dhliwayo said Colcom has maintained a steady output.

“Compared to last year’s performance, I can safely say that we have not moved. We produce about a hundred tonnes per month,” he said.

He said the recent imports controls imposed by government will help boost production.

“We look forward to more efforts like this by government to promote local industry,” Dhliwayo said.

In order to control the influx of cheap chickens that were threatening the viability of domestic industry, poultry importers are now required to acquire a licence from the Industry ministry in addition to one issued by the ministry of Agriculture.

Colcom manufactures pork, beef and chicken products.

Last month, government also banned importation of fresh fruit and vegetables, arguing that increased local production will meet domestic demand.

The ban will mostly impact supplies of tomatoes, potatoes, mangoes, grapes and apples from neighbouring South Africa.

In the half year to December 2013, Colcom recorded a $34 million turnover, up 13 percent from prior comparable period.

Operating income went up 108 percent to $3,8 million while at $3 million profit before tax was up 89 percent.

Tax charge stood at $788,799 resulting in after tax profit of $2,2 million, an uplift of 87 percent .

Basic earnings per share were 1,2 cents. The group declared a 0,4 cents dividend per share.

Its balance sheet increased to $40,6 million, up 8,9 percent, while the net asset value was $27,7 million having improved 7,3 percent for the year.

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