GOVERNMENT intends to increase its shareholding in Cottco as part of plans to turn around the struggling firm, Reserve Bank of Zimbabwe (RBZ) governor, John Mangudya, has said.
The government currently holds a 37 percent stake in the company after a debt-to-equity swap of US$56 million in 2015. Mangudya told Parliament’s committee on Lands and Agriculture this week that the cash strapped firm was struggling to access credit lines from local banks because of its high credit risk status.
This comes as Cottco is struggling to pay farmers $1,5 billion for the 2020 cropping season, leaving the sector in disarray. “Cottco has been failing to secure a deal to pay farmers for produce that was delivered last year. They have approached us for bank guar
Subscribe to The Financial Gazette
This is premium content. Subscribe to read article.