Triangle Limited To Retrench Workers Amid Economic Challenges

CHIREDZI – Triangle Limited, one of Zimbabwe’s leading sugar producers, has announced plans to retrench employees starting February 2025, citing rising operational costs, currency challenges, and competition from duty-free imported sugar as the main reasons behind the move.

The company will implement a three-phase retrenchment program, set to begin in late February and conclude in August. While the exact number of affected employees remains undisclosed, Triangle Limited has assured fair severance packages and support for those impacted.

Managing Director Tendai R. Masawi outlined the difficult economic conditions that have necessitated this decision. He noted that over the past three years, the company has faced escalating costs for essentials like fertilizer, fuel, and maintenance, compounded by inflation, currency losses, and the inability to claim value-added tax (VAT) on inputs since sugar was exempted from VAT.

Masawi revealed that since 2022, profit margins have dropped by 55%, manpower costs have risen by 133% relative to revenue, and debt levels have become unsustainable. The company has struggled to generate positive cash flows, with constrained working capital forcing tough decisions on prioritizing expenditures.

“Despite implementing numerous cost-reduction and revenue-enhancement initiatives, these efforts have proven insufficient to stabilize the business,” Masawi said. He emphasized that the retrenchment is a necessary step to safeguard the company’s long-term sustainability and maintain its role in Zimbabwe’s economy and the Lowveld region.

The company clarified that the retrenchment is unrelated to the business rescue process of its South African shareholder or its acquisition by the Vision Consortium.

The announcement has sparked concern among stakeholders, as Triangle Limited is a significant employer in the region. The retrenchment process is expected to leave a lasting impact on the local community and the broader sugar industry in Zimbabwe.

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