Vamara Group Limited acquires Dendairy

ZAMBIA – The Competition and Tariff Commission (CTC) approved the proposed acquisition of dairy processor Dendairy by Vamara Group Limited, a subsidiary of Mauritius-registered Export Trading Group (ETG), subject to conditions.

CTC said it initially received a partial merger notification in May last year before the transaction was fully notified in July 2025.

The acquisition is a vertical integration to control the entire dairy supply chain. Animal feed is the largest single cost in dairy farming, accounting for up to 80% of total production expenses.

Because ETG owns Edurate Investments, a company that manufactures stockfeed, the merger connects the supply of upstream agricultural inputs with Dendairy’s downstream processing facilities, reducing costs.

The CTC raised concerns that ETG could use its control over cattle feed to give Dendairy lower prices, putting other dairy farmers at a disadvantage.

Consequently, the CTC approved the deal on the strict condition that Vamara Group, Dendairy, and their affiliates conduct all trade with suppliers and customers on non-discriminatory terms.

Dendairy is one of Zimbabwe’s notable dairy processors, producing a range of products, including UHT milk, ice cream, and dairy-blended juices.

The company also operates two dairy farms in Kwekwe and works with contract farmers to supplement its raw milk supply.

Dendairy has reportedly navigated significant financial and operational challenges in recent years, prompting an ownership restructuring.

In 2021, Dendairy was reported to be in discussions to merge with Dairibord, Zimbabwe’s largest dairy producer, but the deal allegedly collapsed over certain structural disagreements.

In early 2019, Dendairy reported severe difficulties in acquiring foreign currency to import essential raw materials for production.

Vamara Group is a Mauritius-registered FMCG company wholly owned by the Export Trading Group (ETG). ETG is a multinational conglomerate spanning agricultural inputs, logistics, and food processing across 45 countries.

In Zimbabwe, ETG already operates the ZimGold consumer brand and previously invested US$20m to revive the David Whitehead textile factory. 3DZ Capital is an investment company owned by Daryl Archibald, a director at Dendairy.

ETG Group already has a diverse footprint in Zimbabwe through several subsidiaries operating in agricultural inputs, chemicals, logistics, food processing, energy and metals.

The CTC noted that one of ETG’s subsidiaries, Edurate Investments, manufactures stockfeed, a critical input in dairy farming.

Additionally, CTC added that the link between Vamara’s feed business and Dendairy’s milk production network, including its own farms and contract farmers, could create opportunities for preferential treatment.

The Common Market for Eastern and Southern Africa (COMESA) Competition and Consumer Commission (CCCC) was notified about the transaction as part of regional merger monitoring requirements.

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