Harare, (New Ziana) – Cotton Company of Zimbabwe (Cottco) majority shareholder, Mutapa Fund Investment, said on Wednesday it planned to re-list the subsidiary back on the Zimbabwe Stock Exchange (ZSE).

Cottco was suspended from the ZSE in 2014 over governance concerns such as failure to conduct audits.

Giving oral evidence before the Lands, Agriculture, Fisheries, Water and Rural Development portfolio committee, Mutapa Investment Fund chief executive officer, John Mangudya said taking the company back to the stock exchange was part of a revival strategy.

“We are working to ensure that Cottco goes back to the Zimbabwe Stock Exchange in terms of transparency and governance,” he said.

Dr Mangudya said Mutapa Investment Fund was also working to clear the Cottco legacy debt to farmers, transporters and workers in the next six months.

“We are happy to advise that the Mutapa Fund has put in place a US$10 million fund. We are establishing facilities and structures to ensure that Cottco can purchase cotton from farmers and settle its legacy debts. These include US$3.1 million owed to workers, US$1 million to transporters, and US$6 million to farmers,” he said.

He said US$5 million of the facility had already been disbursed for the purchase of the current cotton crop, while arrangements to clear outstanding legacy debts are being finalized.

Mangudya assured legislators that all Cottco debts, including employee salaries, would be cleared within the next six months.

“With regard to legacy payments to workers, transporters, and farmers we aim to settle all obligations within six months, on a regular and structured basis.

“We apologize and sympathize with the farmers who have continued producing and delivering cotton without timely payment,” he said.

New Ziana