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Elton Manguwo

THE US$40 million Kilimanjaro land development project, which was launched by President Emmerson Mnangagwa in 2019 has transformed Masvingo province into an economic hub and sugarcane processing powerhouse in a development that saw small-scale sugarcane farmers moving to fill up the commercial farming space. 

The project has a set target of developing 4 000 hectares of land, with 700ha of virgin land so far transformed into plantations and under the custody of 41 beneficiaries. 

The Kilimanjaro project is part of Government and Tongatt Hulett drive to increase sugar output in the country while empowering indigenous sugarcane farmers as out-growers for socio-economic growth in Masvingo province and the country at large. 

Private-public sector investment partnerships President Mnangagwa has repeatedly said the country was open for business while encouraging foreign investors to come to Zimbabwe and open shop taking advantage of the conducive business operating environment created by the Second Republic. 

The Kilimanjaro project is a joint venture arrangement encompassing Tongatt Hulett, the financial sector and the Government in developing 4 000ha of land for sugarcane production. The project addresses one of the key aspects enshrined in the National Development Strategy (NDS1) of strategic partnerships and foreign direct investment (FDI).

Since its inception the project has spurred economic activity in the area as various service providers have contributed in the scheme’s development to a value of US$25 million. 

On the one hand, the Horticulture Recovery and Growth Plan (HRGP) has also projected that 6,4 million tonnes of sugar cane will be produced by 2025 with 4,5 million tonnes for local consumption while the balance of 1,9 million tonnes will be exported, earning the country US$801 562 500. 

Within the HRGP the Sugar Plantations Growth Plan was mooted with various projects planned by the private sector to generate ethanol, sugar and other products. The planned interventions will require US$500 000 000 for 50 000ha. 

The sugarcane processing giant Hippo Valley estates recorded a 30 percent production increase from private farmers of 768 804 tonnes from 592 722 tonnes as a result of hectarage expansion under the Kilimanjaro project for the financial period ended 31 march 2022. 

“Going forward the company’s sugar production for the upcoming 2023/24 season is estimated to be marginally above levels achieved this season. The impact of current cane expansion and yield improvement initiatives will be realised in future seasons due to the long cropping cycle for sugarcane,” said the company chairman Mr Canaan Dube. 

The Government has placed agriculture at the centre of the development process, critically the Kilimanjaro project has empowered local sugar industry with both the technical, land and access to finance. 

The chairman of the beneficiaries’ associations revealed that they had agreed on payment modalities with the Lowveld Sugarcane Development Trust in which each farmer is entitled to US$600 per month per hectare. 

“We indeed applaud the efforts by the President — they are for a noble cause that is set to empower farmers in terms of income generation and access to means of primary production as well as advancing the local empowerment drive. 

Speaking during a youth working group meeting, Minister of Lands, Agriculture, Fisheries, Water and Rural Development Dr Anxious Masuka revealed the Government had equipped young farmers with the necessary skills to ensure the viability of the project and production success given that beneficiaries will be drawn from a trained pool capable of making productive use of the land. 

The sugar cane producing company and the Agricultural and Rural Development Advisory Services (ARDAS) are training farmer supervisors on sugarcane crop production with the training focussing on irrigation water application and scheduling, crop protection and nutrition. 

In addition, Hippo Valley Estates and the Government, through the sugar cane out-grower development projects are also providing input and extension support by co-managing previously under-performing farms in order to increase productivity. To date over 1 000 farmers operating on approximately 20 000ha have been trained and are set to increase the country’s sugar production. 

Devolution success

Minister of state for Masvingo Provincial Affairs and Devolution Ezra Chadzamira applauded Tongatt for its commitment to invest in Zimbabwe and help the provincial Gross Domestic Product (GDP) in line with vision 2030 of an upper middle-income economy. 

“The project has been very supportive in kick-starting the Masvingo economy, as we have seen the coming in of banks and financial sector players, which is a critical component in furthering the devolution agenda, as we aim to achieve an upper-middle income economy by 2030,” said Minister Chadzamira. 

The Minister further highlighted how the anticipated economic activity from increased disposable income and general improvement of livelihoods had supported infrastructural development with big supermarkets and real estate players coming into the province. 

Export market growth

According to statistics from ZimStats sugar cane exports over the last five years show that exports are on an upward trend from the year 2018 to 2020, before declining in 2021 and picking up again in 2022. Reports from Tongaat Hulett reveal that sugar export sales volumes increased by 27 percent from 31 607 in the 2021 season to 40 246 tonnes in 2022. During the 2022 season there was an improved product quantity and quality backed by the allocation of the United States Tariff Rates Quota, which contributed to higher average export prices. 

This empowerment block is poised to transform the company and catapult it into becoming a global powerhouse sugar producer as the country targets to grow the export bill.

On completion the Kilimanjaro project will contribute significantly to the industry’s target of full utilisation of installed milling capacity of 600 000 tonnes of sugar by 2024 positioning the country as one of the most competitive sugar suppliers in the region. 

Meanwhile, the development of sugarcane plantations will arrest the noted increase in sugar cane imports over the period 2019 to 2022. 

It is envisaged that the same model already applied to the initial 700 hectares of the Kilimanjaro empowerment block will be extended to the remaining 3 300 hectares with funding sourced from banks through the Lowveld Sugarcane Development (LSD). 

“About 165 farmers farming on 20-hectare plots are expected to benefit from the remaining 3 300 hectares when fully developed, resulting in an additional 1 500 jobs benefit 6 000 dependants,” said the company recently. 

Current engagements between the company and the Government have resulted in an agreement that the remaining 3 300 hectares under the Kilimanjaro project be developed and managed by the company on a full cost recovery basis for the sole benefit of new farmers to be allocated plots by the Government. 

Tongaat Hulett continues to make significant strides in maintaining its market through strategic partnerships with private farmers. This feeds well into the country’s current drive to ensure resource constrained farmers strike joint venture deals with those with the capacity to fund and fully utilise the land for the good of production. 

To date, over 2 000 joint ventures have been established throughout the country in a development that has given a new complexion to agricultural production. At least 200 000ha of land are being used under joint venture arrangements. 

As part of its sustainable socio-economic development programmes meant to alleviate food shortages in Masvingo Province, Hippo Valley Estates Limited and Triangle Limited in partnership with the Government, planted a total of 603 hectares of wheat at Mwenezana Estate from which 1 544 tonnes of the cereal were realised. 

The wheat has since been delivered to the Rutenga Grain Marketing Board (GMB) depot amid high expectations for the same feat this season. 

The 2022/23 crop, livestock and fisheries assessment report (pre-harvest) show that sugarcane recorded a seven percent increase in area planted from 74 684ha in the 2021/2022 season to 79 722ha in the current season.