LIVINGSTONE MARUFU
Tongaat Hulett says it has enough money for the production and
marketing of sugar for the local and export market despite the effects of
coronavirus and lockdown which restricted movements of goods
locally and internationally.
The development comes at a time when the whole trade and economy
came to a halt after 5.59m people were infected with the virus and 350
000 succumbed to the pandemic.
In its trading update for May, Tongaat chairman Dan Marokane
said the company remained operational during the lockdown
to support the health sector and to ensure minimal disruption in the
supply of critical goods and services.
“Due to the special dispensation granted to the company as an
essential service provider, the production and marketing of sugar
in the local and export market is progressing as planned. The demand
for sugar in the local market has remained strong.
As a result, the company is adequately funded and is able to meet
its working capital requirements,” Marokane said.
He said as one of the country’s key sugar producers, the company
was designated as an essential service provider and exempted from the
lockdown and granted permission to continue operating to ensure people
get sugar.
Following the outbreak of the coronavirus pandemic and its rapid
spread across the globe, Zimbabwe, like many other countries worldwide declared a state of emergency and put the country on lockdown
with effect from 30 March 2020 in terms of the provisions of SI 82 and
SI 83 of 2020. The company has to date invested a total of ZWL$13m
in Covid-19 mitigation measures in the workplace.
In addition, Tongaat has taken robust steps to assist central, provincial and local governments and communities in combating the pandemic. The company has not, to date, experienced any major disruptions to its operations with all key activities that include sugar cane maintenance, harvesting, sugar packing and distribution operations progressing satisfactorily.
Sugar milling for the season commenced on May 5 2020 following a successful off-crop programme.
He said although the country has recorded relatively few cases of
infection and mortalities to date compared to other countries, the
trajectory, and impacts of Covid-19 are extremely uncertain.
As part of its risk mitigation strategy, the company has developed
a robust Business Continuity Plan premised on the worst-case scenario
that the pandemic may take a turn for the worst and that the lockdown
period may be extended for most of the season with highly disruptive
consequences for the business.
Key considerations that have or are being factored into the plan include
the adequacy of critical supplies for the duration of the lockdown.
