A chance visit to Malawi by South African philanthropist Imtiaz Sooliman four years ago has resulted in the growth of an export-oriented nutritional supplement business that is providing much-needed foreign exchange for the poor southern African nation.
The product, known as Sibusiso (blessing in isiZulu), is now being snatched up by hospitals in South Africa, where state dieticians are reporting good results among patients with tuberculosis, HIV and malnutrition, among other ailments.
The local sales helped to generate revenues of about R18 million last year for Rab Processes, the Malawian family-owned business that produces the supplement.
The company, which has invested about R10 million in the supplement so far, has capped the net profit generated from the product at 15 percent in order to ensure its affordability.
Rab Processes shareholder Gaffar Jakhura said the production line had created about 25 jobs in Malawi. In addition, hundreds of Malawian farmers were involved in producing ground nuts and soya, the supplement's primary ingredients.
The owners plan to set up a second production facility in South Africa, probably in Gauteng, when the Malawian unit hits a capacity ceiling. A Dutch shareholder, Henk Kroese of Belfel Trading, is involved in the development of the South African leg.
Sooliman said of the business model: "If there is such a thing as capitalism that cares, that is the ideal motto for this business."
A medical doctor, Sooliman is the founder of Gift of the Givers, a disaster relief organisation that has disbursed R230 million in funds since its establishment 15 years ago. He developed the supplement a year after designing a R60 million food parcel programme for the South African government.
"In the process of delivery I found … the food didn't enhance the quality of health of the people. I realised there was something seriously wrong. Why were top-branded products not having an impact on the health of the people? Yes, they were full, but they were not better," he said.
Severe nutrition deficiencies in the Malawian population that he noted on his 2004 visit provided the impetus to develop a new supplement.
Tuesday, 5 February 2008
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