By Pride Mzarabani
HARARE – Triangle Limited, a leading sugar producer in Zimbabwe has announced a phased retrenchment process due to “unprecedented economic challenges.” The company cited escalating operational costs, inflationary pressures, and currency losses as key factors contributing to this difficult decision.
In a notice to employees, Triangle highlighted the impact of these challenges on its profitability. “Since 2022 we have seen profit margins decline significantly by 55% manpower costs increasing by 133% as a proportion of revenue, and debt levels rising to unsustainable levels,” the notice stated.
The company emphasized that these challenges coupled with the inability to claim VAT on inputs after sugar was exempted from VAT have severely impacted its ability to sustain current operations.
“Despite implementing numerous cost-reduction and revenue-enhancement initiatives, these efforts have proven insufficient to stabilize the business.”
Triangle assured employees that this decision was not related to the recent business rescue process of its shareholder in South Africa or the acquisition of the business by the Vision Consortium.
The company noted that this retrenchment is a necessary step within its broader Project Zambuko strategy aimed at restructuring and stabilizing the business.
The retrenchment process will be implemented in phases, with the company outlining specific details and support measures for affected employees in the coming weeks.
This announcement comes amidst a challenging economic environment in Zimbabwe, characterized by inflation, currency volatility and power shortages.
Triangle Limited is the largest sugar producer in the country established in 1923, situated in the southeast Lowveld of Zimbabwe. The company owns 50.3% shareholding in Zimbabwe Stock Exchange-listed Hippo Valley Estates. Its main products include raw sugar, sun sweet sugar, white sugar, ethanol, molasses, and animal feeds.
