COTTCO owes farmers US$6m, delays threaten livelihoods

CLOUDINE MATOLA

The Cotton Company of Zimbabwe (COTTCO) owes cotton farmers a staggering US$6m, raising concerns over farmer welfare and industry stability.

Most cotton farmers rely on cotton as their primary source of income, and the delayed payments are straining their livelihoods.

COTTCO acting chief executive officer, Rockie Mutenha, confirmed the outstanding payments, stating that while farmers have received their US dollar component for the 2023/24 season, the local currency equivalent—valued at US$400,000—remains unpaid.

He assured farmers that efforts are underway to settle the debt before the upcoming marketing season.

“We have paid 100% of the US dollar component for the 2023/24 season. What remains is the US$400,000 portion paid in ZWL. We anticipate clearing this amount before the marketing season begins. We are still ginning, and as we sell the processed cotton, we should be able to pay the farmers,” Mutenha said.

In addition to this, COTTCO still owes US$5.6 million in legacy debt from the 2022/23 season, with half of it also expected to be settled in local currency. Mutenha revealed that the company has approached relevant authorities for assistance and hopes to clear the outstanding payments soon.

“We acknowledge that we owe farmers US$5.6m from the previous season, half of which will be paid in local currency. We are making frantic efforts to secure funds, and our applications for assistance are under consideration. We deeply value our farmers and are committed to ensuring they are paid,” he added.

Cotton Producers and Marketers Association (CPMA) chairman, Stewart Mubonderi, expressed frustration over the prolonged delays, warning that they are negatively impacting farmer productivity and driving side marketing.

“This delay is eroding farmers’ trust in COTTCO and forcing many into side marketing. Farming is a business—if farmers are not paid on time, they become disillusioned and discouraged. What’s shocking is that COTTCO has already sold all the cotton delivered, yet the farmers remain unpaid,” Mubonderi said.

He further warned that the situation could deepen poverty, particularly in cotton-dependent areas such as Gokwe, Mwenezi, Chiredzi, and Checheche, where cotton is often the only viable crop.

“This is not just about late payments; it’s about survival. Cotton is the lifeblood of these communities. If farmers continue to be shortchanged, it leads to poverty, social problems, and even crime. We call upon COTTCO to settle these debts immediately to restore confidence in the sector and improve farmers’ livelihoods,” he added.

As the 2024 marketing season approaches, pressure is mounting on COTTCO to resolve its financial challenges and restore trust among cotton farmers who remain the backbone of Zimbabwe’s cotton industry.

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