eBusiness Weekly
Business Writer
Seed Co International, which was last year unbundled from Seed Co Limited and later listed on the Botswana Stock Exchange believes it “now has better capacity to raise capital to finance growth and expansion opportunities in the seed business in Africa and beyond.”
In an annual report released this week, chairman David Long expressed optimism the company will rebound and resume its growth path after suffering from a drought ravaged season.
The 2018/19 season was characterised by delayed rains and in some cases outright drought, in both the Southern and East African Markets.
East Africa, especially Kenya and Tanzania experienced the worst drought in 3 decades with the little rains received post the reporting period resulting in reduced plantings in the region.
“Despite the setback this year where both our markets were ravaged by drought, I am optimistic that your company will rebound and resume its growth path,” Long said.
He said the growth expectations will be supported by several factors among them an increase in anticipated demand due to expected grain shortages caused by drought in East Africa and floods in Malawi and Mozambique.
Long also said the company is making “pleasing inroads” into new untapped markets and is expanding its income streams into the vegetable space.
He added that the company was also keeping ahead of the game by releasing new and better products that “outcompete the competition”.
Chief executive Morgan Nzwere said the company now expect earnings to rebound going forward.
This will be on the back of adequate carry-over stocks in all markets and a better rainfall which is being forecast for the upcoming season in key markets.
Nzwere said the company is also looking at “upscaling of the vegetable business in all markets”.
In terms of business development, production challenges in Nigeria have now been resolved and the business is now positioned well to upscale the distribution and sale of produced seed.
In Mozambique, significant inroads have been made with close to 2 000mt having been sold into the market.
The company is in the process of beefing in-country presence through establishment of local agronomy and business development teams as well as seed distribution depots.
Some limited seed production trials have also been initiated, said Nzwere.
Up north in Zambia seed production at own farms continues to increase as more hectarage is cleared.
