Terris AgriPro
The company is owned by businessman Amre Youness. The businessman heads Terris, the biggest shareholder in Samancor, one of South Africa’s biggest chrome producers. Previously, Youness has represented the Eurasian Natural Resources Corporation, which had mining interests in Zimbabwe.
Plans in Zimbabwe
According to the business rescue document, Tongaat executives have briefed Mnangagwa on the transaction.
“In Zimbabwe, the head of State has been kept updated through in-person briefings on the progress of the business rescue by the local Chairman and interim (Tongaat Hullet Limited) CEO,” the report says.
Tongaat’s main concerns in Zimbabwe are land tenure, cheap sugar imports and rising costs.
“The poor economic outlook is exacerbated by the suspension of duties on basic commodities including sugar, which resulted in lower cost imported sugar (which has unfair cost advantages) competing against locally produced sugar. This is slowing down sales significantly domestically, which is the preferred market, with the lost sales volumes being redirected into lower-priced export markets,” Tongaat says.
“Government interventions in respect of grower issues” and a new minimum wage of US$280 set before elections last year “had a significant impact on the cost base and cash flow of the business.” The lack of security over land tenure “due to the 99-year leases not signed creates further uncertainty”, Tongaat says.
In the six months to September, Hippo Valley sold 203 756 tonnes of sugar, almost 53% of all the sugar sold in the country.- NewZWire
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