Online Reporter
Edgar Vhera, Zimpapers Business Writer
STAKEHOLDERS in the cotton industry have welcomed the recent decision by the Mutapa Investment Fund (MIF) to clear legacy debts owed by its subsidiary, Cottco Holdings, amounting to approximately US$5 million, within the next six months.
MIF, the country’s sovereign wealth fund, manages a broad portfolio that includes NetOne, National Railways of Zimbabwe, ZimRe Holdings, Zimbabwe Power Company, Powertel, Allied Timbers, Telecel Zimbabwe, Air Zimbabwe, and the Industrial Development Corporation, among others.
The move to clear Cottco’s debts is expected to restore the company’s financial stability, streamline its operations and boost confidence across the cotton industry.
MIF Chief Executive Officer, Dr John Mangudya, disclosed this recently while appearing before the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries and Rural Development.
“We want to ensure that Cottco pays its legacy debts, which include money owed to workers (US$3,1 million), transporters (US$1 million), and farmers (about US$6 million). So, we are putting these measures in place to enable Cottco to pay farmers. We are starting with the current crop and have disbursed US$5 million so far out of the US$10 million owed,” said Dr Mangudya.
He also revealed that Cottco would introduce a credit card system for farmers to curb the abuse of inputs distributed under the Presidential Inputs Scheme (PIS). The card will be used to access inputs at registered merchants and will be linked to POSB and AFC banks, as well as to biometric data from the Registrar General’s Office.
“The card will be strictly for inputs and will contain the farmer’s biometrics to prevent double-dipping and abuse of the facility,” Dr Mangudya explained.
Cotton Producers and Marketers Association (CPMA) Chairman, Mr Stewart Mubonderi, described the development as a welcome step that could help restore the industry to its former glory.
“This is a confidence booster, and Mutapa must fulfil its promise, demonstrate commitment and take action,” he said.
CPMA Vice Chair, Mr Samson Chigaba, echoed the sentiment, saying the industry was poised for a revival following the announcement.
“Farmers are in high spirits after the pronouncement and are closely following developments, hoping this perennial issue will finally be resolved. With morale boosted, farmer fatigue will become a thing of the past, and order will return to the industry,” he said.
Cotton Council of Zimbabwe (CCOZ) CEO, Engineer Chris Murove, also welcomed the move to clear outstanding payments.
“This issue of unresolved farmer payments has severely damaged farmer confidence, with many abandoning cotton production in large numbers. Hopefully, if dues are paid on time, farmers will return to cotton growing in the upcoming season,” he said.
Zimbabwe Commercial Farmers Union President, Dr Shadreck Makombe, expressed hope that MIF would act swiftly, noting that cotton farmers had been disheartened by numerous unfulfilled promises in the past.
Zimbabwe National Farmers Union President, Mrs Monica Chinamasa, said it would be a blessing for cotton farmers to finally receive payments owed from previous seasons.
She added that the cotton industry must be better organised in future, with no side marketing and prompt payments to growers.
“What we need as farmers is an orderly and reliable market that pays well, like the tobacco sector. Contractors must be properly vetted to ensure they can fully support farmers and purchase the crop,” she said.
The 2025 cotton marketing season is gradually drawing to a close, with farmers having sold 25 million kilogrammes of seed cotton so far — less than half of the projected 61 million kilogrammes.
