Online Reporter
Edgar Vhera
Stakeholders in the cotton industry have welcomed the recent decision by Mutapa Investment Fund (MIF) to clear its subsidiary, Cottco Holdings’ legacy debts, totaling approximately US$5 million, within the next six months.
MIF, the country’s sovereign wealth fund, has an expansive portfolio under its wings, including NetOne, National Railways of Zimbabwe, ZimRe Holdings, Zimbabwe Power Company, Powertel, Allied Timbers, Telecel Zimbabwe, Air Zimbabwe, and Industrial Development Corporation, among others.Cottco’s debt clearance move is expected to restore the financial stability of Cottco, facilitate the streamlining of its operations, and bolster confidence across the cotton industry.
MIF chief executive officer (CEO), Dr John Mangudya, revealed this recently when he appeared before the Parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries and Rural Development.
“We want to ensure that Cottco pays its legacy debts, which is money it owes to workers (US$3,1 million), transporters (US$1 million) and farmers (about US$6 million).
“So, we are putting these measures in place so that Cottco will be able to pay farmers. We are starting with the current crop and we have disbursed US$5 million so far out of the US$10 million (it owes),” Dr Mangudya said.
He revealed that Cottco would also introduce a credit card system for farmers to curb abuse of inputs distributed under the Presidential Inputs Scheme (PIS).
The card will be used to access inputs at registered merchants. The system will be linked to the banks, POSB and AFC and the biometrics from the Registrar General’s office.
“The card will only be for inputs and contain the biometrics of the farmer to prevent double dipping and abuse of the facility,” Dr Mangudya said.
Cotton Producers and Marketers Association (CPMA) chairman, Mr Stewart Mubonderi, said this was a welcome development which could bring the industry back to its former glory.
“This is a confidence booster and Mutapa must fulfil its promise, demonstrate and act,” he said.CPMA vice chair, Mr Samson Chigaba, concurred, saying the industry was set for a reboot with these pledges.
“Farmers are in high spirits after that pronouncement and are religiously following and praying that this perennial problem is dealt with once and for all.
“Now, farmer fatigue will be a thing of the past as morale will be boosted and sanity prevailing in the industry,” he said.
Cotton Council of Zimbabwe (CCOZ) CEO, Engineer Chris Murove, said the clearing of the outstanding balance was a good development.
“This issue of unresolved farmer payments has done serious damage to the confidence of farmers, some of whom have abandoned growing cotton in droves.
“Hopefully, if their outstanding dues are paid in time, farmers will return to growing cotton this coming season,” he said.
Zimbabwe Commercial Farmers union president, Dr Shadreck Makombe, said he hoped MIF would act swiftly as cotton farmers were dejected by many unfulfilled promises in the past.
Zimbabwe National Farmers union president, Mrs Monica Chinamasa, said it would be a blessing for cotton farmers to receive money owed over the past seasons.
She said in the future the cotton industry must be properly organised with no side marketing issues and prompt payments of growers.
“What we need as farmers is an orderly and ready market that pays well, like tobacco.
“Contractors must be properly vetted to make sure they can support farmers fully and to buy the crop,” she said.
The 2025 cotton marketing season is gradually coming to an end as farmers with farmers currently sold 25 million kilogrammes of seed cotton, less than half the projected 61 million kilogrammes.
