Govt seeks to set up sugar mill

The government is preparing to establish a new sugar milling company in the Lowveld region after its unsuccessful attempt to purchase Tongaat Hulett, one of the country's major sugar estates. Tongaat Hulett, based in South Africa, faced financial difficulties and was placed under business rescue in 2022 after accumulating significant debts due to an accounting scandal. In July of the same year, the business rescue practitioners announced their plans to sell Tongaat's operations, including those in Zimbabwe, to Kagera Sugar in Tanzania.

Reports suggest that the government submitted a bid to acquire Tongaat's estates through the Sovereign Wealth Fund, now known as the Mutapa Investment Fund. However, the government has decided to set up a new sugar mill in the Lowveld instead. The Industry and Commerce ministry issued a statement inviting both local and international investors to participate in the development of this new sugar mill.

The establishment of this mill aims to benefit local farmers in the region by providing alternative milling options for their sugarcane. More details can be found in the official notice, which highlights the government's readiness to receive proposals regarding this initiative.

Tongaat Hulett's operations, including Hippo Valley, account for more than 50% of Zimbabwe's sugar production. The government has been working with Tongaat and local banks on Project Kilimanjaro, which involves opening up 4,000 hectares of virgin land for sugarcane cultivation. Under this project, the government is responsible for selecting the farmers who will receive land for cultivation. Hippo Valley Estates has confirmed that it donated the Project Kilimanjaro land to the government. The company will collaborate with the government to support newly-resettled farmers in developing and cultivating the land.