Hippo Valley engages Govt
LIVINGSTONE MARUFU
Hippo Valley Estates Limited is engaging the government regarding the issuance of title deeds for the various land parcels it occupies. This initiative aims to secure land tenure, enable access to credit using land as collateral, and boost agricultural investment.
In 2025, the Government of Zimbabwe launched a nationwide initiative to issue bankable title deeds to farmers, targeting completion for all qualifying resettled farmers by June 30, 2026. The programme aims to convert various land tenure documents—including 99-year leases, offer letters, and A1/A2 permits—into Deeds of Transfer, granting full private ownership and transferability.
Approximately 384,000 farmers, consisting of 360,000 Model A1 and 24,000 Model A2 farmers, seek to unlock the economic value of their land, allowing them to use it as collateral for credit, secure investment, and facilitate legal inheritance.
In a joint statement accompanying half-year results ended September 30, 2025, Hippo Valley Estates chairman Canaan Dube and group CEO Tendai Masawi said the company is seeking to benefit under the same initiative.
“The company is actively engaging with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to obtain title deeds for land previously held under offer letters, and 99-year leases, as well as for land historically protected under Bilateral Investment Promotion and Protection Agreement [BIPPA] arrangements,” Hippo Valley said. This will help the company access more credit to ramp up production at its estates.
Post the reporting period, the group’s harvesting season ended positively with 1,771,051 tonnes against 1,765,801 tonnes, resulting in sugar production reaching 221,017 tonnes against 219,112 tonnes due to good operational efficiencies. The season ended with improved production performances against targets, supported by increased mill uptime and an efficient cane delivery system reliant on company-owned equipment.
Building on strong operational results in both agriculture and manufacturing, the business closed the interim period with increased profits. “Revenue marked a 10% growth from prior year, largely driven by a 14% increase in industry sales volumes and the benefit of better average price realisations from the local market where industry sales volumes shot up by 10%. Sales volumes were adequately supported by increased production in the prior year, which resulted in significant opening stocks and good current year operational performances with production above prior year and targets.
The business continues to prioritise the local market, with excess sugar sold into low priced export markets. While export sales volumes rose by 61%, a significant portion of the sugar earmarked for the export market remained in stock due to logistical challenges in transporting the sugar to the port through rail and this impacted on the potential to further increase revenue although claw back is anticipated in the second half of the year,” the company said.
Profit after tax fell 4% to US$17.075m during the period under review from US$18.36m posted during the comparable period.
Adjusted EBITDA, which excludes non-cash movements in the fair value of biological assets, increased to US$14m from US$29m in the prior year.
The US$12m improvement in adjusted EBITDA is supported by a US$10m increase in revenue and a US$2m decrease in costs, driven by Project Zambuko cost optimisation initiatives, retooling with critical equipment, and a successful off-crop campaign.
Cash outflows for investment activities increased by US$1.5m to support the retooling strategy, particularly for agricultural equipment to eliminate outsourcing. Additionally, the replanting of roots was accelerated after resolving prior challenges with contracted companies.
“These efforts were meant to foster improvements in yield and maintain an efficient cane haulage system which has to date delivered per targets. However, due to funds tied up in stock, the business relied on short term loans to cushion cash flow gaps during the past six months which were concentrated with private farmer payments, agriculture inputs and cane haulage fuel,” Hippo said.
With more sales volumes expected in the last six months, the business anticipates opportunities to lower borrowings. In light of ongoing liquidity demands associated with cane payments, elevated cost pressures, and broad macroeconomic uncertainty, the directors have resolved to declare a dividend. The division of proceeds remains before the courts.
More effort will continue on sales, particularly exports which are currently below management targets, and the company will consider alternative disposal plans to promote raw sugar uptake.
