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OpenCOTTCO Owes Cotton Farmers US$5.6 Million In Legacy Debt
The Cotton Company of Zimbabwe (COTTCO) owes cotton farmers US$5.6 million in legacy debt from the 2022/23 season, with half of the amount expected to be settled in local currency.
COTTCO’s acting CEO, Rockie Mutenha, confirmed the outstanding payments, saying that while farmers have received the US dollar component for the 2023/24 season, the local currency equivalent—amounting to US$400,000—remains unpaid. Said Mutenha (via Business Times):
We have paid 100% of the US dollar component for the 2023/24 season. What remains is the US$400,000 portion paid in ZWL.
We anticipate clearing this amount before the marketing season begins. We are still ginning, and as we sell the processed cotton, we should be able to pay the farmers.
Mutenha said that COTTCO has reached out to the relevant authorities for assistance and is hopeful of clearing the outstanding payments soon. He said:
We acknowledge that we owe farmers US$5.6m from the previous season, half of which will be paid in local currency.
We are making frantic efforts to secure funds, and our applications for assistance are under consideration. We deeply value our farmers and are committed to ensuring they are paid.
Cotton Producers and Marketers Association (CPMA) chairman, Stewart Mubonderi said COTTCO’s delays in paying farmers fuels side marketing. He said:
This delay is eroding farmers’ trust in COTTCO and forcing many into side marketing. Farming is a business—if farmers are not paid on time, they become disillusioned and discouraged.
What’s shocking is that COTTCO has already sold all the cotton delivered, yet the farmers remain unpaid.
Communities in cotton-dependent areas such as Gokwe, Mwenezi, Chiredzi, and Checheche are among the hardest hit by COTTCO’s failures, as cotton is often the only viable cash crop for these regions. Said Mubonderi:
This is not just about late payments; it’s about survival. Cotton is the lifeblood of these communities. If farmers continue to be shortchanged, it leads to poverty, social problems, and even crime.
We call upon COTTCO to settle these debts immediately to restore confidence in the sector and improve farmers’ livelihoods.
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