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Business Reporter
SUGAR processor, Tongaat Hulett, says it has channelled ZWL$13 million towards fighting Covid-19 in the workplace while 150 000 litres of ethanol worth ZWL$4 million have been donated to the State for production of sanitisers.

In a special trading update released Thursday, Tongaat Hulett said ZWL$6 million had also been extended to Masvingo province. “The company has to date invested a total of ZWL$13 million in Covid-19 mitigation measures at the workplace.

“In addition, the company has taken robust steps to assist central, provincial and local governments and communities in combating the pandemic,” it said.

“The company has to date donated 150 000 litres of ethanol worth ZWL$4 million to the State for the manufacture of sanitisers, ZWL$6 million to Masvingo Province to assist with the procurement of surgical gloves, masks, critical equipment and materials for the rehabilitation of eight districwt hospitals, which are designated Covid-19 isolation centres.”

Tongaat said it was implementing key measures in the workplace to fight Covid-19 by adopting initiatives that include rigorous Covid-19 information and awareness campaigns, reducing the number of employees reporting physically at the workplace and capacitating critical staff who are not required to perform physical tasks to work from home where possible.

The sugar producer said it has, however, not experienced any major disruptions on its operations with all key activities that include sugar cane maintenance, harvesting, sugar packing and distribution operations progressing satisfactorily.

“Sugar milling for the season commenced on May 5, 2020 following a successful off-crop programme.

“Although the country has recorded relatively few cases of infection and mortalities to date compared to other countries, the trajectory and impact of Covid-19 is extremely uncertain.

“As part of its risk mitigation strategy, the company has developed a robust Business Continuity Plan (BCP) premised on the worst case scenario that the pandemic may take a turn for the worst and that the lockdown period maybe extended for most of the season with highly disruptive consequences for the business,” said Tongaat.

Key considerations that have or are being factored into the BCP include adequacy of critical supplies for the duration of the lock down. This is particularly relevant considering the requirement of South African-based services and supplies for the mill start-up phase and for the rest of the sugar milling season, it said.

“This requirement has necessitated a close working relationship with procurement teams across the Tongaat Hulett operations in the region to ensure timeous delivery of key supplies particularly in relation to deliveries across borders.”

Due to the special dispensation granted to the company as an essential service provider, it said the production and marketing of sugar in the local and export market was progressing as planned with demand for sugar in the local market remaining strong.

“As a result, the company is adequately funded and is able to meet its working capital requirements,” it said.

On Tuesday the company increased the wholesale price of sugar with the move having a similar knock-on effect on the retail price. The retail price of 1kg brown sugar is now pegged at ZWL$63,84 with a 2kg packet at ZWL$127,68 while 5kg is now selling at ZWL$319,20 and 10kg at zwl$638,40.

The retail price of white sugar now ZWL$67,21 for 1kg, ZWL$134,42 for 2kg, Zwl$336,04 for 5 kg and ZWL$672, 09 for 10kg.