THE Indigenous Advisory Practitioners Association of Zimbabwe (IAPAZ) has expressed concern over the phased retrenchment proposed by Triangle Limited, a subsidiary of Tongaat Hulett.
Triangle Limited recently announced plans for mass retrenchment, citing viability challenges and attributing the phased retrenchment exercise to a combination of rising operational costs, currency instability, inflationary pressures and the adverse effects of government policies.
The country’s largest sugar producer also revealed other challenges, including the rising costs of key inputs such as fertiliser, fuel and imported goods and services.
It further lamented the impact of the government’s decision to exempt sugar from value-added tax (VAT), effectively barring firms from reclaiming VAT on essential production inputs while the influx of low-cost, duty-free sugar imports has further compounded the company’s financial woes.
In a statement yesterday, IAPAZ said the retrenchment had significant financial consequences and impacted economic development in the country.
“This development is symptomatic of broader corporate distress within Zimbabwe’s economy and it highlights the critical need for a comprehensive re-evaluation of both corporate strategies and regulatory frameworks,” the association said.
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IAPAZ’s concern stems from the material interests of its members, including small-to-medium enterprises, corporate entities and individuals who provide labour and services.
“The retrenchment and financial instability of such a major player have far-reaching implications for the livelihoods of our members and the broader economic ecosystem,” the association said.
IAPAZ also called for the revision of policies and frameworks controlling sugar production to promote competition and innovation.
“Historically, major corporations like Tongaat Hulett have leveraged on regulatory frameworks, such as the Sugar Production Control Act [Chapter 18:19] of 1964, to secure monopolistic control over sugar production, milling and marketing,” the association said.
IAPAZ called for an inclusive industrial policy in fostering sustainable growth and driving competition.
“This inclusivity is particularly vital as the country prepares for full integration into the African Continental Free Trade Area, which demands a diversified, competitive, efficient and resilient industrial base,” it said.
The association further called on stakeholders to collaborate towards fostering a regulatory environment encouraging competition, innovation and inclusivity.
“The future of Zimbabwe's industries lies in our collective ability to evolve and embrace a more inclusive economic model,” it said.
“This approach will not only stabilise the current corporate landscape but also ensure long-term resilience and prosperity.”
The association called on corporates to innovate around government policies aimed at empowering local citizens.
“We urge corporates to innovate around the current irreversible economic reality birthed by government policies aimed at economically empowering its local citizens, particularly the previously marginalised, youth, women and war veterans,” it said.