Adverse Economic Conditions Slow Down Zimbabwe’s Kilimanjaro Sugarcane Project

Project Kilimanjaro to clear virgin land for sugarcane farmers has slowed down with adverse economic conditions in Zimbabwe; Hippo Valley Estates Limited revealed in the Reviewed Abridged Interim Financial Results for the six months ended 30 September 2020.

A total of 2700 hectares has been clear on the 4 000 hectares of virgin land to be cleared for allocation to indigenous farmers on a cost recovery basis in Chiredzi.

Tongaat Hulett Chairman Dan Marokane says “Project works have been slowed down on account of delays in obtaining the requisite funding from financial institutions at the back of adverse economic conditions.”

“While alternative funding structures for completion of the project are being considered, some 80 hectares of maize has been planted on the cleared land, whilst an additional 1 500 hectares will be planted to sorghum in partnership with Government as part of efforts to improve food security in the country.”

Sugar production for the six months ended 30 September 2020 was 147 960 tons (2019: 152 076 tons) marginally lower than the same period in prior year according to Hippo Valley’s Reviewed Abridged Interim Financial Results.

“The Company’s own cane deliveries amounted to 744 672 tons (2019: 763 386 tons), a decrease of 2%, while private farmers collectively delivered 427 831 tons (2019: 469 914 tons), a decrease of 9%,” Makorane says.

“Industry cane quality for the period was lower than the prior season resulting in a cane to sugar ratio of 8.14 (2019: 8.11).”

“Total industry sugar production from the current harvesting season is forecast at between 430 000 tons and 440 000 tons (2019: 441 000 tons),” says Makorane.

Hippo Valley Estates with undertaking work on the Project Kilimanjaro Company in partnership with Triangle Ltd, Government and local banks.

‘On completion, Project Kilimanjaro will contribute significantly to the industry target of full utilization of installed milling capacity of 600 000 tons sugar by 2024/25, positioning the country to be one of the most competitive sugar producers in the region and globally,” Tongaat Hulett Chief Executive Officer, Aiden Mhere says.