Old Mutual eyes investment in Cottco solar plant

Old Mutual may finance a solar power project for Cotton Company of Zimbabwe to resolve electricity shortages at its Muzarabani ginnery facility. The insurance company’s representatives visited the site and expressed satisfaction with the location, according to Cottco Chief Executive Officer Rockie Mutenha. Power supply problems have contributed to the decline of cotton lint exports from 237 million dollars in 2004 to 46 million dollars by 2022.

Cottco operates six ginneries across Zimbabwe but has struggled to secure investment for the renewable energy initiative since announcing plans in February. Mutenha said Old Mutual is working with its financiers to complete funding arrangements. The company previously indicated plans to launch the solar facility this year, but has encountered delays due to a lack of capital.

Cottco also continues negotiations to buy a 60 metric ton oil expression plant from China for installation in Gokwe by June. The company already paid a deposit for the equipment, which will cost more than 1.5 million dollars. The firm owes farmers 5 million dollars in arrears from the 2022 to 2023 season and has informed its parent company, Mutapa Investment Fund, of these payment challenges.