Zimbabwean sugar millers have lost their legal challenge against the government’s new revenue-sharing ratio with farmers.
Hippo Valley Estates and Triangle Limited, both part of South Africa’s Tongaat Hulett, argued that the Minister of Industry and Commerce, Mangaliso Ndlovu, overstepped his authority by setting a new ratio that gives 80.5% of the revenue to farmers and 19.5% to millers.
The millers claimed the minister had no legal power to change the revenue-sharing terms, which they said should be based on Cane Milling Agreements (CMAs), not just Cane Purchase Agreements. They also argued there was not enough consultation with stakeholders and that the new ratio would harm their operations, given the heavy costs involved in running mills.
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However, the government and the sugar farmers defended the minister’s decision, saying it was a legal and necessary adjustment to address the economic realities facing both farmers and millers. They argued the new ratio was based on extensive consultations and was a temporary measure.
The court ruled in favor of the minister, stating that the new directive was reasonable and in line with the law, acknowledging the need for a fair solution in the sugar industry. Zimbabwean sugar millers