Home / Knowledge / News / Textiles / Zimbabwe cotton contractors await repayment of US$ 19mn
Zimbabwe cotton contractors await repayment of US$ 19mn
Mar '13
Cotton contracting companies in Zimbabwe still await the repayment of the US$ 19 million of the US$ 42 million invested by them to enhance production, as several cotton farmers breached their contracts and side marketed their output to avoid repayment, according to a Herald Online report.
David Machingaidze, Chairman of the Cotton Ginners Association said cotton was cultivated on 480,000 hectares of area in the country during last season, and only two percent of this was free cotton, that is, it was grown without obtaining any finances from contracting companies.
However, the contractors are still awaiting recovery of US$ 19 million of the US$ 42 million extended to fund cotton production.
During last year, the financers recovered only 55 percent of the amount invested, which is the lowest rate so far, Mr. Machingaidze said.
While some farmers engaged in side marketing of their crops, some others sold their produce at lower prices, not sufficient enough to allow them to repay their loans, the Herald report stated. 
Cotton contractors mostly secure funds for financing through seasonal bank loans, and repayment breaches directly impact future lending, Mr. Machingaidze, who also serves as the Managing Director of Cottco, said.
Liquidity crisis has even thrown some of the contractors out of business and there were only 15 cotton contracting companies last year, compared to 25 firms about three years ago, Mr. Machingaidze said.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Apparel/Garments | On 25th Mar 2017

Net sales at Christopher & Banks fall 10% in Q4

Net sales totalled $85.0 million for the fourth quarter ended January ...

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Interviews View All

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search