Vision Group signals long-term commitment to ZSE

STAFF WRITER

Vision Group, the new controlling shareholder in agro-industrial giant Tongaat Hulett Limited, has reaffirmed its commitment to maintaining a listing on the Zimbabwe Stock Exchange (ZSE), firmly dispelling speculation of a potential exit.

The investment consortium, which assumed control through a debt-to-asset rescue deal last year, is now spearheading the stabilisation and regional repositioning of Tongaat — whose Zimbabwean assets include two major sugar operations: Triangle Limited and Hippo Valley Estates.

Hippo Valley remains listed on the ZSE, and Vision Group says preserving that listing is central to its long-term strategy.

“We have not yet contacted the ZSE, but it is not anticipated at this point that we will exit. There have been no internal discussions about delisting,” Vision Group director and shareholder Rute Moyo told Business Times.

He continued: “Our local management believes strongly in the value of maintaining that listing.”

Moyo added that Vision Group will formally engage the ZSE once it secures the necessary exchange control approvals from the Reserve Bank of Zimbabwe (RBZ), with a view to reinforcing its capital markets footprint and setting out a forward-looking roadmap.

The declaration comes at a critical juncture for Zimbabwe’s capital markets, which are grappling with liquidity constraints, currency instability, and a shrinking domestic investor base. Several blue-chip firms have either delisted from the ZSE or migrated to the Victoria Falls Stock Exchange (VFEX), which trades exclusively in foreign currency.

In that context, Vision Group’s stance is seen as a rare vote of confidence in the local bourse.

“Retaining the ZSE listing keeps Hippo Valley accessible to pension funds, institutional investors, and retail shareholders,” said independent analyst Brian Mupfudza.

“It also signals that the new investor sees long-term value in Zimbabwe’s capital markets infrastructure — not just a stop-gap platform.”

Vision Group’s Zimbabwe strategy appears anchored in stabilisation, stakeholder alignment, and gradual reinvestment. With Zimbabwe’s sugar production estimated at 450,000 tonnes annually — over 80% of it from Triangle and Hippo Valley — the stakes are high.

“There’s real potential here,” Moyo said.

“Zimbabwe has ideal sugarcane-growing conditions. Our job is to unlock that value — starting with operational audits, stakeholder dialogue, and targeted infrastructure investments.”

Vision’s approach, he said, is one of “measured growth,” underpinned by a long-term commitment rather than short-term financial engineering.

Tongaat Hulett, once one of southern Africa’s leading sugar producers, was placed under voluntary corporate rescue in October 2022 after debts ballooned to unsustainale levels.

Vision Group clinched the bid to rescue the company last year, gaining control of core operations in Zimbabwe, Mozambique, and Botswana.

The transaction — hailed as one of the region’s largest corporate rescues in recent memory — brought in a mix of international capital, regional expertise, and technical know-how aimed at reviving the conglomerate’s battered balance sheet and restoring production capacity.

Industry insiders believe that with sufficient capital injection, retooling of ageing infrastructure, and improved access to export markets, Zimbabwe’s sugar output could rise significantly — potentially positioning the country as a key regional supplier once more.

Moyo also addressed concerns over Tongaat’s ongoing staff rationalisation in Zimbabwe, which some unions and observers feared signalled a long-term downsizing agenda.

He clarified that the restructuring process had been underway prior to Vision Group’s acquisition and was part of ongoing efforts to enhance operational efficiency — including outsourcing non-core functions like mechanical workshops and supply chain services.

“Yes, it was a rationalisation,” he acknowledged. “But if you look at the ecosystem, jobs were also created in the outsourced sectors. We don’t believe the net impact on employment was as negative as portrayed. In fact, we see room for expansion, not contraction.”

The clarification is significant as the sugar industry remains a major employer in Zimbabwe’s Lowveld region, and any perception of retrenchment could undermine Vision’s social licence to operate.

Vision Group’s ambitions will, however, hinge heavily on policy alignment and regulatory support. Moyo identified several enablers as critical to long-term success: exchange control approvals from the RBZ, clarity on land tenure arrangements, and tax harmonisation across regional operations.

“We’re committed to operating within the full ambit of local laws,” she said. “We’ve already begun preliminary engagements with authorities and will continue to do so in good faith. Stability and transparency are essential for us to unlock the scale we envision.”

ZSE chief executive Justin Bgoni, speaking recently at a capital markets forum in Harare, echoed similar sentiments — encouraging new investors to view the local bourse as a reliable partner in long-term capital formation.

“The ZSE remains a trusted platform for companies that see Zimbabwe as a growth market,” Bgoni said. “We welcome investors like Vision Group who are aligned with industrialisation, employment creation, and sustainable development.”

As Zimbabwe battles to restore investor confidence amid economic volatility, Vision Group’s strategy offers a glimmer of optimism — combining capital strength, operational intent, and market commitment.

By choosing to retain Hippo Valley Estates on the ZSE — while also driving regional consolidation and expansion — Vision is positioning itself not merely as a rescuer, but as a strategic long-term partner in Zimbabwe’s economic recovery.

Whether this signals the start of a wider turnaround for Tongaat Hulett remains to be seen. But for now, the message from Vision Group is clear,they are here to build, not to bail.