By Beatific Gumbwanda
Minister of Industry and Commerce, Nqobizitha Mangaliso Ndlovu, recently revealed government’s intention to break Tongaat Hulett Zimbabwe’s monopoly in the sugarcane milling industry by introducing new players.
He said this move was aimed at increasing competition, improve efficiency, and benefit local farmers and consumers.
Ndovu was responding to concerns that had been raised by Chiredzi Central MP Ropafadzo Makumire, in parliament recently, on government’s position in reducing sugarcane production costs which he said was the reason why Tongaat Hullett Zimbabwe’s was on a worker retrenchment drive.
“Tongaat Hulett Zimbabwe, the giant sugar producer in Zimbabwe, is currently in the process of retrenching 1 000 employees and to date, more than 100 have already been laid off. The company is citing hardships that are related to cheap imports that are coming in and the high cost of production that the company is experiencing.
“What measures is the government taking to ensure that even the cost of production remains minimum or average,” said Makumire.
In his response Ndlovu said the government had several plans to address the problem with one of them being introducing new players in the milling process saying they could not rely on one miller.
“I am not aware of the reasons why they are retrenching. I have had discussions, extensive discussions with Tongaat Hulett Zimbabwe and the importation of cheap sugar has not been raised as one of them. Our sugar is the most expensive in the continent.
“However, exporting companies increase their costs and it reduces their competitiveness. There are a number of issues that have to be addressed in the sector. Among these interventions will be the introduction of other players in the milling industry. We cannot continue to rely on one company,”said Ndlovu.
He went on to challenge farmers to up their game saying the country’s sugar production averaged a mere 40 tons per hectare, significantly lower than the optimal 130-170 tons and said it was the primary reason why Zimbabwe’s sugar was the most expensive in the continent.
“The sugar industry is vital to our economy, creating employment and supporting downstream industries. However, our farmers need to improve their yields to enhance competitiveness.
“By doing so, the industry can export larger quantities and reduce sugar prices for local consumers. It’s time for our farmers to take action and unlock the full potential of this vital sector,” said Ndlovu.
He said the medium and long-term growth of the sector lies in its ability to increase productivity in the sugarcane farming levels.
He said the average output was the core of why the sugar was not competitive and limit the country’s ability to export in large quantities.
To address this challenge, he said the first step was that the Government had designated sugarcane as a strategic crop.
Last year, Chiredzi North MP and sugarcane farmer Roy Bhila called on banks to partner with farmers and finance establishment of a mill to challenge Tongaat monopoly.
He said during his short stint as Deputy Minister of Industry and Commerce he had started enquiring about the project and had established that it was affordable for farmers if given a loan to establish their own mill.
