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Tongaat expects more competition

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Tongaat expects more competition



CHIREDZI – Tongaat Hulett, the country’s sugar giant is expecting more competition in the next few years as Zimbabwe fully embraces regional trade protocols and the possibility of a new mill opening in the Lowveld.
This was said by Dr Dahlia Garwe, Tongaat Hulett Corporate and Industry Affairs Head during a media tour of the company’s operations in Chiredzi last week.
She told journalists that Zimbabwe is expected to fully embrace trade protocols under SADC, COMESA and AfCFTA and this was going to intensify competition in the market.
She also said that there was a possibility of a new miller on the horizon.
However, demand for local sugar remains strong, she said and attributed this to projected population growth in the country.
She also hinted that the economy is looking up with expected growth in agriculture, mining and tourism. This growth will see an increase in disposable income hence more demand for the company’s product.
As a result of these factors, the overall demand for sugar will increase by a whopping 29% in the next four years between 2024 and 2028.
Dr Garwe also welcomed the ongoing national road infrastructure development which will make more rural markets accessible hence boost demand.
Dr Garwe added that Category by category the demand for raw sugar will increase by 13% during the plan period and she attributed this to growth in the food and beverage sectors. Demand for table sugar is expected to increase by 9,9% in line with population growth. The sources of the planning statistics in population was taken from ZIMSTATS.

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