Mauritius-based Group expands Zimbabwe agribusiness footprint with Dendairy acquisition

Zimbabwe’s dairy industry is poised for a significant restructuring after the Competition and Tariff Commission (CTC) approved the acquisition of dairy processor Dendairy (Pvt) Ltd by Vamara Group Limited, a subsidiary of the Mauritius-based Export Trading Group (ETG), subject to conditions designed to safeguard fair competition.

The transaction involves Vamara acquiring 100% of Dendairy’s shareholding, consolidating ETG’s footprint in Zimbabwe’s agriculture and food processing sectors while positioning the dairy processor for operational stabilization and future expansion.

Strengthening the dairy value chain
The regulator’s assessment focused on the vertical relationship between the two businesses. ETG already operates in Zimbabwe through multiple subsidiaries spanning agricultural inputs, chemicals, logistics, food processing, energy and metals. One of its units, Edurate Investments, manufactures stockfeed, a critical input in dairy farming that directly influences milk production.

Because the merger links stockfeed production with dairy processing, the CTC classified the transaction as a vertical merger, examining potential competition risks such as customer foreclosure or restricted access to key inputs for rival firms.

However, the commission concluded that these risks were limited. Competing stockfeed suppliers, it noted, would still have access to significant alternative demand through contracted dairy farmers across the country.

Approval with competition safeguards
While approving the deal, the CTC imposed a key condition requiring Vamara and Dendairy to maintain non-discriminatory trading practices across the supply chain.

“In light of the analysis, the commission approved the transaction on the condition that Vamara Group Limited and Dendairy trade with their suppliers and customers on fair and non-discriminatory terms,” the regulator said.

The commission also highlighted that stockfeed accounts for nearly 80% of the cost of milk production, meaning preferential supply arrangements could distort competition if left unchecked.

ETG expands Zimbabwe footprint
Founded in 1967 in Kenya, Export Trading Group (ETG) operates in 48 countries across six continents, spanning agricultural inputs, logistics, food processing, energy, minerals and metals, technology and supply-chain optimization.

Its subsidiary Vamara Group Limited runs a consumer-packaged-goods business rooted in Africa. Dendairy produces UHT milk, ice cream and dairy-blended juices, operating two farms in Kwekwe and sourcing additional milk from contract farmers.

The acquisition follows years of financial strain, including foreign-currency shortages that limited imports. For ETG, which already owns ZimGold Industries, the deal strengthens its agribusiness strategy as the COMESA Competition and Consumer Commission reviews the transaction expected to improve supply chains and stabilize milk output.