HIPPO Valley Estates (Hippo), one of Zimbabwe’s largest sugar producers, has donated the Project Kilimanjaro land to the government, Standardbusiness can exclusively reveal.
The US$25 million project, sitting on 4 000 hectares of virgin land, seeks to benefit about 200 new farmers on a full cost recovery basis, creating 2 000 new jobs in the process and significant economic opportunities for local contractors and suppliers.
Hippo head of corporate industry affairs Dahlia Garwe told Standardbusiness that the project would sail smoothly as the land now belongs to the government.
“There are no developments on the project so far,” Garwe said.
“The company donated the Project Kilimanjaro land to the government of Zimbabwe.
“We are informed that the government has now finished allocating land and will be advising the concerned farmers soon,” Garwe said.
Garwe stated that the company will be working together with the government to assist the newly resettled farmers to develop that land.
“At this stage, there are no challenges as the land now belongs to the government,” she said.
“We will be assisting with development of the land and provide technical assistance to the newly resettled farmers.”
Garwe said the project is an “excellent” empowerment project for local farmers and will add another 3 300 hectares of sugar cane to national production.
“The expectation is that farmers will eventually be able to achieve yields of at least 90 tonne per hectare,” she said.
“Sugar consumption per annum, on the local market, is estimated at between 320 000 tonnes and 350 000 tonnes. So, Zimbabwe will remain a net exporter of sugar.”
In its 2023 annual report, Hippo said in partnership with Triangle Estates (Tongaat Hulett Zimbabwe) continues to work with government and various financial institutions to progress the implementation of Project Kilimanjaro, a 4 000ha sugarcane development.
It said an additional 138ha was planted to cane, completing the 700ha Kilimanjaro Empowerment Block.
The government in liaison with Tongaat, has set up the Project Kilimanjaro joint steering committee to oversee the development of the balance of the 3 300 ha, for the benefit of new farmers being identified by government.
The company said following recommendations from the Industry and Commerce ministry, a tribunal consisting of three arbitrators was set up to determine commercial issues relating to the sugar milling agreement for the 2023/24 milling season.
The arbitration was concluded on April 13, 2023 and parties are now engaging on modalities to implement the award whose discussions are now at the tail end.
In addition to Project Kilimanjaro, the company indicated that it continues to support private farmers through various initiatives to improve productivity on existing sugarcane farmland.
One such programme developed is a partnership framework whereby the company is co-managing certain underperforming out-grower farms.
To date, 64 farmers have volunteered to partner with the company in the co-management arrangement with 680ha having been ploughed out and replanted with new roots.