Zimbabwe’s manufacturing sector received a major boost after Varun Beverages commissioned a new US$20 million Cheetos snacks manufacturing plant, a move expected to deepen industrial diversification, create jobs and strengthen local production as the company’s output capacity surges to nearly 120 million bottles per month.

The commissioning of the globally recognised Cheetos brand plant, alongside the laying of a foundation stone for a juice and dairy blending facility, marks another significant investment milestone for the beverage giant, which has grown from a single production line eight years ago into a large-scale manufacturing hub.

President Emmerson Dambudzo Mnangagwa, who officially commissioned the plant, said the latest investment was a strong endorsement of Zimbabwe’s economy, industrial policies and ability to produce internationally competitive products.

“It is my distinct pleasure to be part of another milestone in Zimbabwe’s industrialisation journey here at Varun Beverages as we commission the new production plant of the world-famous Cheetos brand here in Zimbabwe,” President Mnangagwa said.

“The local production of such globally celebrated brands serves as an endorsement of the country’s economy, policies and ability to deliver high-quality, internationally competitive products.”

The President said the additional US$20 million investment would not only broaden industrial activity but also create employment opportunities and strengthen Zimbabwe’s integration into regional and global manufacturing value chains.

“The added US$20 million investment by Varun Beverages also marks industrial diversification, creation of employment opportunities for our people and manufacturing sector integration into both regional and global value chains,” he said.

The commissioning comes eight years after President Mnangagwa inaugurated the company’s initial plant, which at the time operated only one production line with a capacity of approximately 10 million bottles per month.

Since then, the company has expanded significantly, adding five more production lines, pushing production capacity to nearly 120 million bottles per month.

“I am pleased to note that this complex has significantly expanded into a world-class manufacturing hub, with the addition of five more production lines, which include production capacity of nearly 120 million bottles per month,” President Mnangagwa said.

Additionally, the company now provides direct employment to approximately 2,000 people, while also supporting women and youth entrepreneurs through indirect economic opportunities.

“The company’s impressive growth strategy illustrates what can be achieved through consistency, sustained investment, and strong collaboration between Government and the private sector,” he said.

The latest expansion also aligns with Zimbabwe’s broader industrialisation ambitions under Vision 2030, which seeks to transform the country into an upper-middle-income economy.

President Mnangagwa said since the opening of Varun’s first industrial line, Zimbabwe’s economy had recorded average growth of 5.5 percent per annum, while Government remained focused on sustaining momentum through industrialisation, domestic value addition and job creation.

“My Administration is on course to sustain the current momentum towards achieving structural transformation for equitable, broad-based and inclusive growth,” he said.

“Emphasis continues to be on domestic value addition and beneficiation, increased productivity, as well as the prioritisation of job creation and diversification.”

The President said manufacturing was expected to anchor economic transformation, with the sector projected to grow by 3.4 percent, driven by strong linkages with agriculture and mining.

He added that capacity utilisation had now surged beyond 60 percent, signalling recovery and renewed investor confidence in the industrial sector.

“The manufacturing sector is expected to anchor this thrust through a projected growth of 3.4 percent. This is primarily driven by strong linkages with agriculture and mining, while capacity utilisation is now surging beyond 60 percent,” he said.

To support industrial growth, Government has allocated resources towards retooling, industrial modernisation and working capital while improving the business environment.

In a development likely to excite investors, President Mnangagwa revealed that Cabinet had approved the slashing of numerous regulatory fees, licences and compliance costs affecting sectors including manufacturing, finance, real estate and health care.

“In this regard, yesterday, Cabinet approved the slashing of numerous regulatory fees, licences and compliance costs, including those related to manufacturing, financial, real estate and health care sectors,” he said.

“My Administration shall not hesitate to take bold decisions towards stimulating investment, multi-pronged industrial growth, job creation and broad-based empowerment that benefit our nation and people as a whole.”

Beyond beverages and snacks, Varun Beverages is also expanding into agriculture-linked industries through a proposed juice and dairy blending facility, which President Mnangagwa said would broaden opportunities in the dairy and fruit sectors.

“Today, I have laid the Foundation Stone for the new juice and dairy blend production facility of Varun Beverages Zimbabwe,” he said.

“This forward-looking investment will broaden the footprint in the beverage and nutrition segment through both the dairy and fruit sectors, while generating more downstream economic opportunities.”

The President further welcomed the company’s plans, through its holding company RJ Corporation, to invest in approximately 500MW of renewable energy generation, including proposed solar farms in Matabeleland South, Mashonaland Central and Mashonaland West.

“These investments include renewable energy generation of about 500MW,” he said.

“Ventures in the renewable energy sector are most welcome and dovetail with our quest for sustainable green industrial development.”

President Mnangagwa said the proposed solar projects would accelerate rural industrialisation and modernisation while strengthening energy security.

He also urged Varun Beverages to support small-scale dairy farmers as part of an integrated supply chain strategy and expand exports by taking advantage of Zimbabwe’s strategic location and regional trade agreements.

“Zimbabwe is Open for Business and will continue to be a safe, secure and competitive investment destination,” President Mnangagwa said.

“The plant is thus a symbol of transformation and another building block as we build the Zimbabwe we all want, brick by brick, stone upon stone, and step by step.”