Wilson Chipangura, Guest Reporter
HARARE – Tongaat Hulett has suspended advance payments to farmers following the recent directive by the Government to suspend lending by banks.
The company used to make advance payments to cane farmers using loans from banks.
In a statement on Thursday, Hippo Valley Estates Limited and Triangle Limited, Chief Operating Officer James Bowmaker said the latest directive makes the company incapacitated.
“It is with regret that the millers advise of the immediate suspension of advance payments until further notice.
“We normally fund the advances from loan proceeds that we access from the banks.
“Following the recent suspension of lending by banks we find ourselves unable to continue offering advances,” said James Bowmaker.
President Emmerson Mnangagwa on Saturday announced a number of measures meant to steer the sinking Zimbabwe economy’s ship to safety.
Mnangagwa suspended all bank lending, whether to government or private sector but the move has been criticized by business players.
President Mnangagwa said in his statement that the unprecedented move is “to minimize money creation of broad money that is prone to abuse for speculative purposes.”
