Cottco engages banks over 2024 marketing season
THE Cotton Company of Zimbabwe (Cottco) is on a crusade to engage financial institutions with a view to raise funds towards settling cotton farmers’ outstanding payments from the 2023 season, as well as build funds for the upcoming 2024 marketing season.
In a recent X (formerly Twitter) post, Cottco said it continued to strongly collaborate with its financiers who are a key component in the rural transformation trajectory.
“Fruitful deliberations were held with CBZ, FBC, CABS and Ecobank on funding in preparation for the 2024 season intake,” said the post.
Cottco acting chief executive Mr Munyaradzi Chikasha said his organisation was in talks with financiers to extinguish farmer debts and source funds to pay farmers for the upcoming 2024 season.
“Indeed, as Cottco we are strengthening our collaborations with various local financial institutions as we continue to source funds to pay the outstanding US$4 million balance that we owe farmers from the previous season. We have paid US$19, 6 million to date and we are hoping to pay the outstanding balance by end of March 2024,” said Mr Chikasha.
He said their collaboration with financiers was also critical as preparations for the forthcoming season get into motion, particularly for the financing of woolpacks, ginnery spares and fuel.
Cottco is targeting an intake target of 60 000 tonnes this coming season and in partnership with Grain Marketing Board (GMB), chemicals such as post emergence herbicides, pesticides as well as top dressing fertilisers are being swiftly moved.
“Farmers who planted cotton have already started receiving the inputs. For farmers in areas such as Muzarabani and the Lowveld area, we are driving operation “#donjemumunda” in an effort to encourage more of them to take advantage of the existing planting window that ends on February 15,” Mr Chikasha added.
Cottco had distributed 3 112 862 kilogrammes of seed with potential to cover 207 524 hectares to 158 706 farmers by January 19, as they chase their 260 000 hectares’ target.
During last year’s World Cotton Day celebrations in Harare, Cottco board chair Mr Sifelani Jabangwe lamented the liquidity crunch that hit the financial sector resulting in them failing to pay farmers their dues on time.
“The main challenge with cotton production is that it’s a 13-month industry from the time we prepare for planting until the time we get income from export proceeds.
“Farmers want payments within six months but this year we had liquidity challenges with our bankers and we could not draw down to pay farmers on time,” the Cottco board chair said at last year’s commemorations.