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Savanna Tobacco seeks to raise $10 mln for expansion

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HARARE


Savanna Tobacco’s major shareholder Adam Molai is seeking to raise $10 million in the next 12 months to finance its various investment projects across the SADC region as the company intensifies expansion programme.

“We are working on scaling up our tobacco business continentally. Effectively in the next 12 months we will be raising $10 million dollars to drive the various investments that we are pursuing,” he said.

Molai said the appointment of a new Regional CEO eight months ago had seen the company open three new markets in the region while the group is currently in the process of acquiring another factory in which he hoped will be completed in the next three months.

“We appointed a group CEO who is responsible for driving the continental agenda. We have since entered three new markets and we are looking at more markets in the SADC region; acquiring and building new factories in those parts. Two months ago we acquired a factory in Zambia for cigarette manufacturing, we launched it and it’s now producing,” he said
Molai who has several business interests including in liquid fuel logistics, lubricants distribution and retailing, says he was looking for good investing opportunities.

 


“I know it sounds crazy for me to say this but there is a case for ‘great’ investment cases in Zimbabwe but those great businesses are limited. Where are the value chains for businesses? We have a great climate for agriculture but what are we doing with it .We have a lot of  underutilised assets. If we capitalise on those then we won’t be needing value chains. As Zimbabwe we need to look at the basics and capitalise on them,” he said.
Molai said venture capital in Zimbabwe had the potential to make great businesses work.
“I’m always out there looking for opportunities where we can do what we have done with Dharwizi. It is possible to make great things in four years’ time not in the usual 10 years that everyone talks about,” he said.
Molai said the $4.5 million investment in transports logistics company Dharwizi (JV with Ram Petroleum)
had given them seven times more in return since inception.

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