Astra sets sights on local market, region

Published: 03 February 2014

Astra Industries is now focusing on expanding both its local and regional operations after regulatory authorities approved a deal to have local and foreign investors take over the Reserve Bank of Zimbabwe's 63 percent stake at the consortium.

The company's managing director, Mr Mackenzie Mazimbe, said the transaction, which saw Astra management and Japanese investor Kansai Plascon form Hemistar Investments, subsequently taking over the central bank's stake, was approved by the Ministry of Youth, Indigenisation and Economic Empowerment, as well as the Reserve Bank of Zimbabwe's Exchange Control Division, the Competition and Tariffs Commission and the External Loans Co-ordinating Committee. Japanese investors hold 49 percent in the consortium, the maximum allowed under the Indigenisation and Empowerment Act, while locals control the remainder.

The RBZ sold the stake in the company as part of its disposal of non-core assets held through Finance Trust of Zimbabwe (FTZ), its investment arm, as it mobilises resources to pay off its debts.

"All the requirements pertaining to the investment were completed by December 31 last year, meaning we are now compliant with every requirement in the country, including the indigenisation laws," he said.

He added that the company, which is now focusing on expanding its market share, plans to resume projects that had been mothballed due to a lack of working capital.

"The partnership has increased our competitiveness, hence we are now looking at taking advantage of both domestic and regional opportunities to ensure the group remains in a profitable position," he explained.

The ZSE-listed manufacturing concern has a heavy presence in Botswana, Zambia and Mozambique. Astra will in the first quarter of this year concentrate on implementing the working strategy crafted with their partners late last year, according to Mr Mazimbe.

"We are very active in the Sadc region, but we intend to take advantage of the growth of new markets to expand and consolidate our market share.

"The focus will be directed on both existing and emerging markets, capitalising on the technical expertise of our new partners. Most of the strategies to be implemented were decided last year.

"It is important that such kind of Foreign Direct Investments (FDI) be promoted and yield results. This will help the country realise its projected economic growth targets," he noted.

Astra Industries and Dulux Zimbabwe dominate the paint manufacturing industry on the local market. Kansai Plascon was founded in 1918 and is in the top 10 global paint companies with a corporate office in Sandton, Johannesburg, that supports the manufacturing sites in South Africa, Namibia, Botswana and Zambia.

- sundaymail

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