Youth Entrepreneur of the Year Award winner Sipho Mzima
Manufacturing is a the backbone of any industrialised economy — like Gauteng’s. And food manufacturing and agro-processing are important sub sectors for the value chain, as they add value to primary agricultural produce that would fetch a limited price unprocessed.
Sipho Mzima (32), who hails from the Vaal, and his business partner and high school classmate Velasco Mboweni (32) recognise the importance of the sector and are making their own impact by venturing into soy-based food manufacturing through their company Nambitha Nutritional Products.
Nambitha Nutritional Products recently won the Manufacturing category in the Township Entrepreneurship Awards, as well as being named Youth Entrepreneur of the Year.
The company was started after Mboweni approached Mzima in 2007 with a proposal to venture into specialised manufacturing. Mzima was studying marketing and advertising, while Mboweni had been working in a wheat manufacturing environment.
The duo were introduced to soy manufacturing by the World Initiative for Soy in Human Health and assisted by Joint Aid Management. Mzima says they took about two years to set up operations.
Nambitha Nutritional Products now sources about 300kg of soybeans a month from farmers in the Free State and Kwa-Zulu Natal and manufacture about 300 units per day of the Nambisoy smooth drink. The drink comes in four different flavours and an unflavoured option. The company has created five permanent jobs and three part-time positions.
Soy is highly nutritious, is filled with protein, rich carbs, fibre, minerals, vitamins and iron and is suitable for people who are looking to achieve a balanced diet, vegetarians, or those suffering from chronic illness.
Locating a manufacturing business in the township has a number of advantages. The improving supply of electricity and water, soon to be followed by broadband in Gauteng, helps to lower the cost of doing business in the province. Transport costs for staff, often a limiting factor in employment, are low as the workplace is near to home rather than in faraway manufacturing hubs. Distribution costs are also low if distribution is within the township.
Nambisoy is currently sold in townships around Orange Farm and Sedibeng through direct sales as well as through sales agents. The company is currently in talks with wholesalers in the area to start stocking the product.
“Our growth potential is in retail stores such as Pick n Pay, Spar, Shoprite and other retail stores. The business has the potential to sell its products in a commercial market. The company has the potential to be an employment vehicle in a township,” says Mzima.
In the short term the company can benefit from spreading its wholesale and sales agent network to other parts of Gauteng such as Ekurhuleni, Johannesburg and Tshwane.
Mzima says he would advise anyone to go into the field of manufacturing for the sake of the economy of the country. “It is not that difficult to operate a food and beverage manufacturing company; it just needs patience and discipline.”
In its economic plan, the Gauteng government promotes manufacturing because of its forward linkages with the global value chain and export potential. Nambitha Nutritional Products can benefit from successful penetration of new markets.”