AFRICAN Distillers Limited (Afdis) is injecting US$5 million into boosting production capacity and reviving Zimbabwe’s domestic wine industry, the alcoholic beverage maker said yesterday.
Under the proposed investment, Afdis plans to scale up production of its total beverage capacity to 30 million litres from 18 million over the next five years.
The increased investment will be dedicated to increasing local content and fermentation technology.
During a tour of Afdis facilities yesterday, Industry and Commerce secretary Thomas Utete Wushe said the beverage maker represented the kind of forward-looking investment the government wanted to support.
“We have just been told fantastic stories about industrialisation in this province. The key highlights include an investment of over US$5 million in the coming few months to expand this plant,” Wushe said.
“We heard a figure of 18 million litres in their current production and a desire to move that to 30 million litres. That movement requires funding.”
He added: “Moving from 18 million to 30 million litres requires capital. Currently, the company cannot access affordable finance and this is something the government is taking seriously.”
The tour comes as Zimbabwe steps up efforts to reindustrialise amid a difficult economic environment marked by limited foreign direct investment, high production costs and competition from illicit trade.
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Under the Zimbabwe National Industrial Development Policy 2021–2025, the government has placed strong emphasis on rural industrialisation and import substitution as key strategies for diversifying the economy and creating employment beyond urban centres.
However, persistent challenges, including restricted access to affordable credit and the proliferation of grey market goods, continue to hamper the growth prospects of local manufacturers.
“What we are doing here is fulfilling our promise,” Wushe said.
“We at the Ministry of Industry and Commerce are committed to delivering industrialisation through rural industrialisation, working within a devolved structure.”
During the tour, Afdis also expressed concern over the resurgence of illicit alcohol and grey market products.
While government crackdowns since December 2024 helped improve sales by curbing smuggling, the company warned that black market activity was re-emerging.
“They reported a rise in sales following enforcement measures, but we are now seeing signs that new smuggling channels are developing,” Wushe said.
“We have assured them that this fight is far from over. We remain committed to protecting local industry.”
Afdis managing director Muchaneta Ndachena said such enforcement efforts had helped lift sales by 10% in recent months.
“As a company, we are seeing growth opportunities across agriculture, mining and tourism,” she said.
“However, we continue to face unfair competition from producers of illicit products who don’t pay taxes, making it difficult for us to compete on pricing.”
She also stressed the importance of a vibrant formal retail sector, saying the decline of major supermarket chains had affected distribution channels.
“Formal retail used to be a key part of our strategy. Their challenges have impacted our sales, and we hope they will be revived soon,” Ndachena said.
