ZIMBABWE’S sugar industry is poised for growth as new investors have joined the sector in a move meant to revitalise operations, while ensuring the industry’s long-term viability.
Vision Group, which includes investors from Zimbabwe and Pakistan, officially assumed its position as the new owner of Tongaat Hulett Zimbabwe after acquiring the agro-processing firm through a debt-to-asset swap transaction process.
The development comes at a time when the company was facing acute financial challenges that threatened sugar processing.
Speaking during a stakeholders’ engagement luncheon held at Hippo Valley Country Club this Tuesday, Vision Group Director, Mr Rutenhuro Moyo said they are committed to turning around the sugar industry in Zimbabwe, which is one of the lifelines of the country’s economy.
“We want to stabilise operations as they are now. They have been unstable for a while since they went into business rescue in September 2022, which delayed capital programmes. We believe that is our first order of business. We think there is an opportunity to grow the business in terms of yields and area under cane, as well as innovate. We are also looking at possibilities to produce other by-products, such as carbon dioxide for the industry,” he said.
The coming on board of these investors is expected to drive strategic diversification while stabilising the company’s operations.
“The Vision Group is African-owned. They have a vision to create an African agri-processing giant. They are committed long-term, with proven track records in African businesses. We are committed to transparency, open engagement, and generating strong financial returns for investors,” Chief Executive Officer for Vision Sugar, Mr Gavin Dalgeish said.
“What is key right now is moving away from BRPs. With a new investor on board, we are liberated from negotiating with banks for credit lines. We can negotiate better terms with suppliers, rather than relying on cash-up-front deals that strain our cash flow due to lack of trust. Having a strong parent company allows us to focus on running operations effectively,” Tongaat Hulett Zimbabwe’s Chief Executive Officer, Mr Tendai Masawi noted.
Sugarcane outgrowers believe the sugar industry can return to profitability with proper management and transparency amongst key players in the sector.
“There is significant unrealised potential in the sugar industry. Currently, we are yielding around 90 tonnes per hectare, but we can average 115 tonnes. By optimising the entire value chain from growing to milling, processing, refining, and marketing, we can unlock value. The sugar industry is a key driver of Masvingo province’s GDP. We welcome investors, but as sugarcane outgrowers, we expect transparent business practices. As business partners, we look forward to a collaborative relationship,” one of the Sugarcane outgrowers said.
Tongaat Hulett operates Zimbabwe’s two sugar mills in Triangle and in Hippo Valley, with a combined capacity to process 3.5 million tonnes of sugarcane annually.
Vision Group acquired Tongaat’s assets and operations in Zimbabwe as well as in South Africa and Mozambique.
