Triangle Limited announces retrenchment amid escalating economic pressures

ZIMBABWE – Triangle Limited, one of Zimbabwe’s largest sugar producers, has announced plans to retrench an undisclosed number of workers starting late February 2025.

The three-phase retrenchment programme, aimed at addressing escalating operational costs and other challenges, is expected to conclude by August 2025. 

In a statement, Triangle Limited’s Managing Director, Tendai R. Masawi, cited a combination of economic difficulties as the main reasons behind the decision.  

He highlighted the impact of rising costs for essential inputs such as fertilizer, fuel, and maintenance, along with inflation and significant currency losses.  

The company has also been negatively affected by the removal of value-added tax (VAT) claims on inputs since sugar was exempted from VAT. 

“The current economic environment in Zimbabwe has presented unprecedented challenges for Triangle Limited over the past three years,” Masawi said. 

He revealed that since 2022, the company’s profit margins have plummeted by 55 percent, while manpower costs have increased by 133 percent relative to revenue.  

Additionally, debt levels have become unsustainable, and the company has struggled to generate positive cash flows, forcing tough decisions on prioritizing expenditures. 

Masawi noted that despite implementing numerous cost-cutting and revenue-enhancing measures, these efforts have not been sufficient to stabilize the business. 

He emphasized that retrenchment was a necessary step to ensure the company’s long-term sustainability and maintain its role in Zimbabwe’s economy, particularly in the Lowveld region. 

Triangle Limited pledged to provide fair severance packages and support programmes for affected employees. The company also committed to working closely with union representatives and other stakeholders to ensure transparency and fairness throughout the process. 

The retrenchment decision, Triangle stated, is unrelated to the business rescue process of its South African shareholder or its acquisition by the Vision Consortium. 

Triangle Limited has been operational since 1934, initially focusing on cattle ranching before transitioning to crop production.  

The company began expanding in the early 1960s with the development of water storage and irrigation infrastructure for sugarcane cultivation.  

Currently, Triangle crushes around 2.5 million tonnes of cane annually, producing up to 320,000 tonnes of raw sugar, including 90,000 tonnes of refined sugar. 

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