Zimbabwe’s Triangle Announces Retrenchments in 2025
Triangle Limited, a subsidiary of Tongaat Hulett, has announced a phased retrenchment process as the company battles economic challenges. The sugar producer, a key employer in Zimbabwe’s Lowveld region, stated that these measures are necessary to stabilise the business.
In an official statement, Managing Director Tendai R. Masawi explained the reasons behind the decision:
“Despite our constrained financial position, we chose to express our appreciation for these efforts through a discretionary production bonus. However, it is with great regret that we must inform you of a significant development within Triangle.”
Rising Costs and Declining Margins
The company revealed that operational costs have skyrocketed, with manpower expenses rising by 133% as a proportion of revenue. Fertiliser, fuel, maintenance, and imported goods have added to the financial strain. Inflation, currency losses, and changes to VAT exemptions have further reduced profit margins.
Mr Masawi elaborated:
“Since 2022, profit margins have declined significantly by 55%, and the company has been unable to generate positive cash flows from its operating activities for the past three years.”
Competition from low-cost sugar imports and regional pricing disparities have exacerbated the situation. Despite efforts to enhance revenue and reduce costs, the company noted that these initiatives have been insufficient.
Phased Retrenchments to Minimise Impact
Triangle Limited outlined a phased approach to retrenchments, which will occur in three stages, concluding in August 2025. Mr Masawi emphasised that this decision is solely based on local economic challenges and unrelated to shareholder issues in South Africa.
“This retrenchment process is not related to the business rescue process of the company’s shareholder in South Africa or the acquisition of the business by the Vision Consortium,” he clarified.
The company is committed to providing severance packages and emotional support programmes for affected employees.
Looking Ahead
The retrenchments are part of Project Zambuko, a broader strategy aimed at restructuring the company.
“This retrenchment exercise, while difficult, is a necessary step to safeguard the organisation’s future while preserving its critical role in Zimbabwe’s and the Lowveld’s economy,” the statement concluded.
Follow Us on Google News for Immediate Updates
The post Bad Start to the Year: Sugar Producer Triangle Announces Retrenchments, Cites Zimbabwe’s Economic Challenges appeared first on iHarare News.
