Published: 07 July 2025

Seed Co Limited is poised for sustained growth across Africa as it continues to benefit from heightened structural demand for food security, regional seed shortages, and a broadening retail and export base, according to new research from top equities firms.

Stockbroking and equities firm FBC Securities, in its latest earnings review, highlighted the company's strong performance in the 2025 financial year, with revenue nearly doubling to US$71.2 million and seed volumes up by 52%, led by significant gains in maize (91%) and soybeans (59%).

"Seed Co Limited remains well-positioned to benefit from Africa's structural food security demand, ongoing regional seed shortages, and its broadening retail and export footprint," FBC Securities noted. The firm also pointed out that 90% of Seed Co's revenue is now US dollar-denominated, with more than half coming from export and open-market channels-reducing its dependence on government contracts and improving liquidity.

Seed Co's group chief executive officer, Mr. Morgan Nzwere, said during a recent analyst briefing that the company is expanding its research and development (R&D) footprint across the continent to enhance resilience and improve the performance of its seed varieties in diverse climates.

"Most of our research assets are in Zimbabwe, but we are now strengthening our presence in East and West Africa. A new rice and yellow maize breeding station is being established in West Africa," Nzwere said.

He added that the group recently released new seed varieties in Malawi, Nigeria, and Kenya to broaden its product basket and meet evolving market needs. Wheat and sunflower varieties have also been introduced in Nigeria and Tanzania, markets that are gaining importance in Seed Co's growth strategy.

Another research firm, IH Securities, noted that the shift from El Niño to a La Niña weather pattern could boost agricultural activity and seed sales in the region. The Southern African Regional Climate Outlook Forum (SARCOF-30) has forecast normal to above-normal rainfall across the region from February to June 2025.

"This presents potential upside to Seed Co's sales volumes," IH said. However, it warned of ongoing climate risks, such as flooding, and currency volatility in countries like Malawi that could affect the group's performance.

Despite these challenges, Seed Co is expected to maintain its leading market position as it expands further into Ethiopia and Tanzania, while continuing to roll out new drought-tolerant seed varieties and strengthening its export capacity.

With a focus on diversified markets, improved R&D infrastructure, and strong financial performance, Seed Co is positioning itself as a key player in securing Africa's agricultural future.
- the herald

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