Cotton deliveries to the Cotton Company of Zimbabwe (Cottco) for 2023 season closed at 69,419mt, 48% above 2022, however the company has struggled to pay farmers.
By January 2024 Cottco had paid US$19.6m to farmers, 83% of what it owes, and just 18% of their Zimdollar dues (Z$7.2bn).
Cottco expects to clear payments by March this year.
Cottco formerly Cotton Marketing Board is 37.1% owned by the government through the Mutapa Fund.
Company secretary, Eunice Mupanduki, said liquidity in the local economy remained constrained.
Of late there had been a drop in cotton production as farmers opt for tobacco.
Zwnews
