TANGANDA Tea Company Limited says it remains financially stable and able to meet its short-term obligations despite Zimbabwe’s volatile economic environment, as it moves to deploy fresh equity capital to bolster operations and fund key investments.
The move comes nearly a month after shareholders approved an US$8 million capital raise through a renounceable rights offer, paving the way for a near one-for-one share issue aimed at easing liquidity pressures and stabilising the company’s debt-laden balance sheet.
The capital raise is critical for Tanganda, which in January reported a US$6,36 million cash shortfall and US$7,1 million in bank borrowings.
Without fresh funding, the company warned, its production capacity and ability to service debt could be compromised, amid climate-related production disruptions, power outages, and delayed export inflows.
“The directors assess the ability of the company to continue in operational existence in the foreseeable future at least twice per annum at each reporting date,” Tanganda said in its annual report for the period ended September 30, 2025.
“As at 30 September 2025 and subsequently as at the date of reporting, the directors assessed the company’s ability to continue operating as a going concern and believe that the preparation of these financial statements on a going concern basis is appropriate.”
The board said it would continue monitoring economic volatility, focusing on exchange rate fluctuations and their impact on suppliers, employees, lenders, and other stakeholders, as well as broader macroeconomic indicators. Directors are also exploring market diversification.
The US$8 million capital raise forms part of Tanganda’s plan to rapidly strengthen its liquidity position.
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Shareholders also approved an increase in the company’s authorised share capital from 400 million to 700 million shares, creating room for the rights issue and potential future
equity issuances.
The renounceable rights offer opened on February 24 and closes today.
