GLOBAL packed foods giant Nestle has agreed to re-open its Zimbabwe plant after extracting guarantees from the inclusive government regarding the security of its operations and staff following threats President Robert Mugabe’s supporters.
The Swiss-based company announced a temporary shut-down of its Zimbabwe factory after weeks of pressure from the local indigenisation lobby and government officials to resume purchases of milk from a dairy farm owned by President Mugabe’s wife, Grace.
Revelations of the commercial relationship with Gushungo Dairy Estates had sparked off global media headlines and threats to boycott Nestle products, forcing the company to stop sourcing milk from the farm.
However, Welshman Ncube, the Industry and Trade Minister, said a deal had been hammered out following consultations with the dairy industry, Nestle Zimbabwe and Gushungo Dairy Estates.
Under the agreement, supplies from Gushungo will now go into a pool processed by Dairiboard Zimbabwe and other companies. Nestle Zimbabwe would then source its requirements from the general pool.
The Affirmative Action Group (AAG) led protests against Nestle’s decision to suspend milk purchases from Gushungo while Empowerment Minister Saviour Kasukuwere said the move was tantamount to the company imposing sanctions on the country.
Minister Ncube said he had been asked to intervene in the dispute by both President Mugabe and Prime Minister Morgan Tsvangirai as the government sought to placate investors made nervous by the saga.
The inclusive government is trying to re-engage the international community and promote investment to help re-build an economy battered by years of political bickering and international sanctions.
(newzimbabwe)
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