Seed Co sets aside US$7,24m for capex

Published: 1 hour ago

Seed Co International Limited (SCIL) has earmarked US$7,24 million for capital expenditure (capex) in its current financial year ending March 31, 2026, as the regional seed producer consolidates its expansion drive across Africa.

The figure is slightly down from the US$7,36 million spent in the year ended March 31, 2025, according to the company's latest annual report.

SCIL, a subsidiary of Seed Co Group (SCG), manages operations outside Zimbabwe, with a footprint in Zambia, Malawi, Tanzania, Kenya, Mozambique, Botswana, and Nigeria. Locally, the group trades through Seed Co Limited.

For the year ended March 31, 2025, SCIL recorded a notable increase in total assets to US$155,92 million from US$142,93 million in the prior year. This was largely driven by a near 34% rise in the valuation of property, plant and equipment (PPE) to US$54,13 million.

SCG chief executive officer Morgan Nzwere said the higher asset valuation reflected capital expenditure in Zambia and Tanzania, alongside a groupwide PPE revaluation that cushioned depreciation and foreign exchange losses.

The group also maintained a healthy liquidity position, with US$1,95 available for every dollar of short-term debt, highlighting its capacity to cover immediate obligations.

Nzwere said SCIL remained resilient despite operating in a difficult macroeconomic environment marked by currency depreciation, inflation, and the effects of climate change.

"Leveraging its proprietary seed technology, adapted for diverse climatic conditions, alongside a strong regional footprint and a trusted brand cultivated over 85 years, the group is set to capitalise on emerging opportunities across its markets," he said.

He added that the company's research and development pipeline underpinned its environmental, social and governance (ESG)-led innovation strategy. Key growth drivers include increasing demand for food security solutions, improved seed availability, and better trading conditions in Mozambique.

The group is also scaling operations in Tanzania and Ethiopia, with upcoming elections in Malawi and Tanzania expected to stimulate seed demand. Additional growth opportunities are being targeted in Angola, the Democratic Republic of Congo, and the Lakes Region.

Operational resilience, Nzwere said, was being enhanced through localised borrowings to mitigate foreign exchange exposure, geographically spread seed production to cushion climate-related risks, and increased direct cash sales via retail outlets.

During the year under review, SCIL achieved 5% revenue growth to US$124,3 million, up from US$118,3 million, despite stockouts and trading disruptions in Mozambique caused by post-election turmoil. A 42,3% reduction in finance costs further boosted performance, resulting in profit after tax rising to US$5,7 million from US$4,9 million the previous year.

Nzwere said the group remained confident in delivering sustainable growth through disciplined execution, innovation, and regional integration.
- BD

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