NEW: Cottco receives US$30 million boost from Treasury

Online Reporter

TREASURY has injected US$30 million into the Cotton Company of Zimbabwe (Cottco), to enable the company to buy raw cotton from farmers in the current selling season.

The selling season opened in May.

Cottco chairperson Mr Sifelani Jabangwe, said the amount received will enable the firm to cover outstanding payments.

“We are pleased to announce that, following yesterday’s Cabinet meeting, our company has been allocated a total of US$30 million to buy cotton from farmers.

“Prior to this meeting, we were facing challenges to make payments to our farmers because our coffers had just 40 percent of the total amount required to pay for the total deliveries to be made during this season,” said Mr Jabangwe.

Zimbabwe Farmers Union (ZFU) director Mr Paul Zakariya, said farmers welcome Government’s intervention.

“This is a welcome gesture, and we believe this has come through the Government to ensure that all the cotton that was produced under the Presidential scheme is paid for,” said Mr Zakariya.

Cotton Producers and Marketers Association chairman Mr Stewart Mubonderi, said delays in payment were pushing farmers into illegally side-marketing the crop.

“Delay of payments to the farmers was a major challenge. We hope that from this new financial injection we will see a great improvement.

“Farmers were ending up doing side marketing because they will be in need of money while the proper channel was not forthcoming with payments. We hope all these will be the things of the past and hope Cottco will ensure smooth flow of payments throughout all channels,” said Mr Mubonderi.

To date, 54 000 tonnes worth US$80 million have been delivered, against the target of 96 000 tonnes.