THE Cotton Company of Zimbabwe (Cottco) has enlisted the services of financial institutions in a desperate move to clear outstanding salaries and debts to various creditors.
The company approached creditors late last year seeking deferment of payment to 2025, as it moved to clear a balance of 10% owed to farmers from the 2022/23 season.
The move to seek financial assistance was revealed in Parliament on Wednesday by Lands, Agriculture, Fisheries, Water and Rural Development deputy minister Vangelis Haritatos.
He was responding to a question asked by Zaka South lawmaker Clemence Chiduwa regarding outstanding salaries of employees at the Cottco Chiredzi depot.
“I would like to inform the honourable member that Cottco has approached financial institutions for loans for cotton purchases and working capital which includes salaries and furthermore approached customers for pre-financing facilities,” Haritaos said in response.
“Cottco will be able to start clearing arrears once these financial arrangements are in place.
“It is important to note, however, that these arrears were actually caused by a drought year and, therefore, drought mitigation is extremely important going forward.”
Government has a shareholding of only 37% in Cottco.
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