Published: 09 December 2025

Tanganda Tea Company Limited, Zimbabwe's leading tea producer, has unveiled plans to raise US$7 million to shore up working capital, through the disposal of non-core assets and a bridging finance facility. The move forms part of a broader strategy to streamline operations and restore profitability following challenging market conditions.

The company will also implement job cuts expected to save US$1,8 million annually, as part of its cost rationalisation measures. Earlier in July, Tanganda announced it would no longer pursue a secondary listing on the Victoria Falls Stock Exchange, instead opting for a renounceable rights offer of its listed Class A ordinary shares, targeting US$8 million in capital.

The restructuring and capital raising come after underperformance in key crops - tea, macadamia, and avocado - driven by adverse weather, uneven rainfall, natural production cycles, historic commodity price declines, and lingering effects of COVID-19. These factors are expected to contribute to a loss after tax of US$4,2 million for the year ended September 30, 2025.

"To accelerate realisation of the capital raise proceeds, the board has approved additional alternative options," the company said in a market update. Tanganda is conducting due diligence with an off-taker, and a term sheet for the disposal of non-core assets has been finalised, with proceeds of US$4,5 million expected within 30 days of shareholder approval at an extraordinary general meeting. A bridging facility of US$2,5 million is also at an advanced stage of review by a financial institution.

The company said these measures would meet its immediate working capital needs and fund critical capital expenditure to boost revenue and operational efficiency across its value chain.

Tanganda's business recovery plan also includes a staff rationalisation exercise to optimise human resources. The livestock unit has been consolidated and relocated to mono-cropping estates at New Year's Gift and Zona, releasing 50 employees from the livestock section to focus on the company's core business, saving an estimated US$1,8 million annually.

"The board and management are confident that these strategies will return the business to long-term profitability," the company said, emphasising its commitment to sustainable operations and eventual dividend payments.

Despite delays since the first cautionary statement issued on October 28, 2024, due to considerations on the appropriate stock exchange and selection of underwriters, Tanganda remains optimistic about recovery and has reiterated its focus on restoring efficiency, revenue growth, and shareholder value.
- online

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