Smart partnerships…From left Cotton Producers and Marketers Association chairman Stewart Mubonderi, Lamar Flemming president and chief executive Dari Gregori, Mashonaland West resident minister Webster Shamu and Chinhoyi mayor Test Micheals inspect cotton crop during a field day recently.

ZIMBABWE’S cotton farmers are expected to get their cash on time this year following the injection of more than $30 million into the sector by European investors.

The investors, comprising of Italy’s Lamar Fleming, France’s Devcot SA and Mambo Commodities, and their local partners Carp Global International, last year availed $10 million pre-finance for the crop in Zimbabwe to Cottco Holdings.

Lamar Fleming president and chief executive Dario Gregori said the investors were impressed with last season’s crop and were more than willing to continue investing in Zimbabwe.

“The consortium, after the good performance of last year’s contract and being informed that this year’s crop is expected to be larger, is ready to avail pre-financing that is more than double or treble the amount we put in the 2016/2017 season,” he said on the sidelines of a field day in Chinhoyi on Friday.

The pre-finance capital is expected in the country during the first quarter of this year – shortly before cotton harvesting.

The latest development comes as the country is experiencing cash shortages due to a huge trade deficit, low manufacturing production and illicit financial inflows among other things, resulting in banks putting a cap on withdrawals.

Market experts said, despite getting their money on time, the fresh capital will also help farmers to retool and adequately prepare for the next farming season. 

Gregory highlighted that the investors imported about 10 000 metric tonnes of cotton last year from Zimbabwe and are expecting to import more this year.

“The cooperation of the local partner Carp Global has been essential in achieving the positive completion of this contract. It is their knowledge of the pre-financing procedures both locally and internationally, their logistics support in the planning and execution of the deliveries from the ginneries to Johannesburg that has made this contract a success,” he said. 

Gregory, Mambo Commodities president Chris Harman and Carp Global team met with Agriculture minister Perrance Shiri, Cotton Council of Zimbabwe president Paul Mangwana and Edward Tome Zimbabwe National Farmers Union treasurer general to discuss ways to boost cotton production.

Mashonaland West resident minister Webster Shamu said the coming in of foreign investors to support the country’s agriculture sector was commendable.

“When investors come like this we should not be tempted to engage in corrupt activities that discourage investment. We want investors to come with their capital and knowledge, which we can utilise for economic development,” he said at the same event.

Shamu noted that President Emmerson Mnangagwa’s new government is also seeking investors to set up textile industries in Zimbabwe.

“We want to have our own factories so that we can make our own clothes that we export to other nations,” he said adding that cotton value addition will help improve farmers’ lives.

Cotton Producers and Marketers Association chairman Stewart Mubonderi said the country was confident of achieving its 200 000 metric tonnes target this year due to improved government intervention.

“Most farmers received their inputs on time and we are expecting a good crop this year despite threats of a drought because cotton has the ability to thrive in harsh climatic conditions,” he said.

Cottco Chinhoyi area manager, John Khata, said his company was expecting 5 000 tonnes of cotton from planted 6 000 hectares in Chinhoyi.  

“Despite the little rains we have received so far, we are expecting increased cotton production this year compared to last year due to improved yields.

National cotton output increased to 72 000 tonnes last year, up from 28 000 tonnes produced in 2016, according to the Agriculture Marketing Authority.

Cotton used to be one of the country’s largest foreign currency earners before production slumped due to viability challenges resulting from inadequate funding and poor practices.