20091225

HARARE (Reuters) - Zimbabwe's government has asked food giant Nestle to resume operations in the country, saying it guaranteed the operations of the firm and its staff from interference, state media reported on Friday.

Nestle this week temporarily shut down its factory, citing harrassment by the authorities.

The firm said it had received an unannounced visit from government officials and police on December 19 and was forced to accept a milk delivery from non-contracted suppliers. Two of its managers were questioned by police and released without charge the same day.

On Friday the Herald newspaper quoted Industry and Commerce Minister Welshman Ncube -- tasked by President Robert Mugabe and Prime Minister Morgan Tsvangirai to intervene in the matter -- as saying a deal had been reached allowing Nestle to continue operating.

"The parties have collectively reached an understanding to work together in ensuring that milk produced at Gushungo Dairies is absorbed by the local dairy processors," Ncube told the paper.

"For its part, government has given its assurance on the safety of staff and management at both Nestle Zimbabwe and Gushungo Dairies."

Nestle officials were not immediately available to comment.

Business bodies Confederation of Zimbabwe Industries, Zimbabwe National Chamber of Commerce and the Chamber of Mines welcomed the news of a resolution to the row, which Tsvangirai said on Wednesday undermined efforts to rebuild investor confidence.