Zimpapers Logo

Patrick Chitumba Midlands Bureau Chief
The process of taking back the Cotton Company of Zimbabwe by the government is almost complete, Vice President Emmerson Mnangagwa has said.

He said the move is expected to ensure cotton farmers are paid viable prices for the crop.

Many farmers had abandoned growing cotton due to poor prices offered by cotton buyers.

VP Mnangagwa told people gathered for the official opening of the $4 million Dazzle Superstore in Kwekwe last Friday that the poor prices offered by cotton buyers had prompted the government to take back Cottco.

He said the move to take back Cottco was part of the multi-million dollar revitalisation of the economy.

“We’re finalising modalities to take back Cottco and very soon we will announce the takeover of the company,” said VP Mnangagwa.

He said it was saddening to note that only 35 percent of cotton was used locally while 65 percent of the product was being exported in its raw state.

“We want local companies to process the cotton so that the country can derive maximum benefits from growing cotton,” said VP Mnangagwa.

Cottco, which started as the Cotton Marketing Board in 1969, was sold to private investors in 1994 and began trading on the bourse in 1997.

Last year, the company which was grappling with a $56 million debt, applied to the High Court to be placed under judicial management.

Trade in its shares on the Zimbabwe Stock Exchange was suspended and it also reduced the number of contracted farmers from 150,000 to around 70,000.

Turning to the state of the economy, VP Mnangagwa said the country’s future was bright.

He said Zimbabwe had all-weather-friends like Russia, China, and Belarus which he said were willing to lend millions of dollars towards the recovery of the economy.

VP Mnangagwa said the government was now working on investment packages as it moves to attract more investors.

“President Mugabe set up a team which I chair to spearhead economic recovery. Under the guidance of President Mugabe we’ve been to China and that country is in the next 10 years going to avail $10 billion to the African continent. We’re working on having bankable projects to access those funds.

“A team of Chinese experts was here to evaluate each of the mega deals signed by President Mugabe when he visited the Asian country last year to enable the financing of the projects to start,” he said.

VP Mnangagwa urged Zimbabweans to remain resolute and support President Mugabe and his pro-people policies.

“President Mugabe is a visionary. He said ‘people must get back their land’ and while the decision was not popular with Britain and her allies, he was resolute and now we’re proud owners of our natural resources. Yes, we’ve been down but certainly not out. We’re now up, we’re moving forward towards a brighter future,” said VP Mnangagwa.

Turning to his prepared speech, VP Mnangagwa commended the owner of Dazzle Superstore, Brennan De Bruyn for investing $4 million in the project.

He said he was delighted to note that Cde Bruyn, a member of the ANC in South Africa, wanted to invest in property and textile industry in the country.

VP Mngangagwa said the government was actively involved in the “Buy Zimbabwe” initiative and encouraged the retail sector to support the initiative by buying their goods from local producers.

“The government is therefore committed to making Zimbabwe a more attractive investment destination,” he said.