Cotton on to this!

Cottco, the cotton company of Zimbabwe, is on course to become an African cotton giant with a billion dollar turnover

and management has implemented a five-pronged values system to help it achieve this ambitious goal.

The five E’s namely Excellence, Enterprise, Empathy, Ethics and Engagement are the values being strongly adhered to by the company which currently employs nearly 4,000 people during the cotton intake season and has annual revenue of $150 million.

Cottco, which is based in Harare, has operations countrywide with nine ginneries in Bindura, Chinhoyi, Chiredzi, Glendale, Gokwe, Kadoma, Mutare, Muzarabani, and Sanyati. It sells lint to both the domestic and overseas market including the rest of Africa, Europe and the Far East.

Managing Director David Machingaidze is the driving force behind the company’s strategy and

Cotton on to this!Cottco Zimbabwe

A major lint producer has set some pretty big goals for the future which are aimed at transforming it into the

definitive industry leader

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Written by: Sheree Hanna Produced by: John Holliman >>>

Technology plays an integral role in Cottco’s operations and other developments have included the implementation of a new project of farmer management systems that is leveraged on mobile networks.

The company is also exploring a less costly and flexible mobile computing system for the procurement of cotton seed and payment to farmers and it is pursuing the implementation of a suitable ERP system to integrate all the critical functions of the business.

“The company views technology as a big enabler for the business as it allows management to

have a critical oversight of all business activities and enables informed decisions based on quality information, which in turn allows us to have better business performance,” Machingaidze said.

The turnaround has gathered momentum and we will continue to ride on that wave ‘til the company grows to become the giant we want. Not only will we strive to be Africa’s cotton giant, but we are also looking forward to making a footprint on the global playing field. We are confident we have what it takes to reach greater heights”— David Machingaidze, Managing Director

Cottco ZimbabweCotton on to this!

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while it has gone through some difficult economic times, the light at the end of the tunnel is now visible.

He said: “Cottco has been going through difficult times after dollarisation of the economy and I had to lead a difficult but satisfying paradigm shift in culture.

“The turnaround has gathered momentum and we will continue to ride on that wave ‘til the company grows to become the giant we want. Not only will we strive to be Africa’s cotton giant, but we are also looking forward to making a footprint on the global playing field. We are confident we have what it takes to reach greater heights.”

Aiming highIn order to achieve its goals, $15 million has been invested in property, plant and equipment over the past three years to enable it to operate even more efficiently and competitively.

Now investment is being made in the latest IT infrastructure, upgrading of ginneries and other elements of property, plant and equipment.

“We are working on bringing in the Zimbabwean agriculture enabling technologies like the SMS platform and we are working on a number of initiatives to grow our operational base,” explained Machingaidze.

Cottco HVI lines for testing fibre properties

Cottco classing room

We put all our hearts into all we

do. We are the best in the business. We

hold ourselves to the highest quality

standards and exceed expectations

— David Machingaidze

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Cottco ZimbabweCotton on to this!

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Cottco, formerly the Cotton Marketing Board (CMB), was privatised in 1994 and listed on the Zimbabwe Stock Exchange in 1997. Following a restructuring exercise in 2008, AICO Africa Limited was set up as a holding company and Cottco became one of its subsidiary companies.

Quest to be the bestIn its quest for continuous improvement, Cottco implemented a Change Programme to improve a number of areas including cost management and operating efficiencies; ethics and corporate governance, innovation to enable it to survive in a global market and it has adopted various strategies to increase the hectarage under cotton. This is part of its long-term ‘One Million tonnes of cotton output in Zimbabwe’ programme.

The company outsources for both inbound and outbound logistics and distribution, Machingaidze said: “We rejuvenated our supplier relationship management and the process resulted in the company getting best service from suppliers.

“In Inventory Management, we order on re-order levels and have set minimum order quantities. Stock management is crucial for Cottco since it helps reduce

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Supplier Profile

The Cottco product

STATISTICS

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opportunity costs and finance costs on money tied in inventory. Quality management is also key; as an ISO certified company, we have to abide by highest levels of quality.”

Likewise, staff training is high on the list of priorities and the company runs a diverse range of in-house training programmes throughout the year aimed at all skills levels. There is also an apprenticeship programme for the engineering trades and a Graduate Development Programme.

The company has worked hard at positioning itself for expansion in the future and according to

Machingaidze is defined by its well established farmer inputs credit scheme and its wealth of experience and highly skilled workforce as well as its strategically located infrastructure and powerful branding.

“Our values are commonly referred to as the 5 E’s,” concluded Machingaidze. “We put all our hearts into all we do. We are the best in the business. We hold ourselves to the highest quality standards and exceed expectations.”

One can only expect that Cottco is well on its way to becoming a giant within its industry.

Cottco ZimbabweCotton on to this!

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Visit us online:

A: David Machingaidze, Managing Director

B: Dacyl-Ray Rambanepasi, Head of Finance

C: Petros Piki, Head of Operations

D: John Machivenyika, Head of Ginning & Sales

E: Maduviko Mubaiwa, Treasurer

Industry: Agro-business

Founded: 1969

Headquarters: Zimbabwe, Harare

Key PeoPle/tItles: David Machingaidze, Managing Director; Dacyl-Ray Rambanepasi, Head Finance; Petros Piki, Head Operations; John Machivenyika, Head Ginning & Sales; Maduviko Mubaiwa, Group Treasurer

Products: Lint and Ginned Seed

revenue: USD150 million

emPloyees: 179 permanent and add up to 3,800 contract employees during cotton intake season

WebsIte: www.thecottoncompany.com

A

B

C

D

E

Cottco Zimbabwe

Head Office:1 Lytton Road Workington,P.O.Box 2697,Harare, Zimbabwe

Tel: (+263) 04 749458Fax: (+263) 04 753854 / 708573

cottco@cottco.co.zw

www.thecottoncompany.com

http://digitalmediamarketing.com/

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