BLESSING MADZIWANZIRA
ZIMBABWE’S second largest cotton firm, Southern Cotton Company (SCC), is targeting a 355% increase in production in the 2019/2020 farming season to 25 000 tonnes from the current 5 500 tonnes due to high demand of cotton on the market.
This is despite the harsh economic challenges, characterised by crippling power cuts of up to 18 hours daily, causing companies lose huge sums of money in potential revenue.
“We are aiming to produce 25 000 tonnes in the 2019/20 farming season from the 5 500 tonnes we have been producing,” SCC managing director, Caos Nzenze, told journalists at Tafuna ginnery in Shamva on Friday.
Nzenze disclosed that SCC was failing to produce enough cotton seed to satisfy the market due to low production caused by rolling power cuts. This has resulted in the cancellation of contracts due to late delivery of products. The company has also lost thousands of dollars in potential revenue due to late deliveries. He bemoaned penalties charged for delays.
“Last time we delayed the delivery by 28 days and we were fined the amount above US$20 000,” Nzenze said.
SCC is also battling delays in the issuance of export licences. This will result in the company being slapped with penalties and sometimes, orders are cancelled.
