SEED firm, Seed Co International Limited (SCIL) has set aside US$7,24 million as capex for its current financial year ending March 31, 2026, NewsDay Business understands.
SCIL is one of two subsidiaries under the Seed Co Group (SCG) that operates the group’s operations outside Zimbabwe.
Locally, the group operates through Seed Co Limited.
SCIL operates in Zambia, Malawi, Tanzania, Kenya, Mozambique, Botswana and Nigeria.
“Group capital expenditure for the year March 31, 2025 totalled US$7 359 166 (2024: US$5 802 852). Capital expenditure for the year to March 31, 2026 is planned at US$7 240 000 (2024: US$9 916 079),” SCIL said in its annual report for the period ended March 31, 2025.
During its financial year ended March 31, 2025, SCIL recorded a significant increase in its total assets to US$155,92 million from the prior year’s US$142,93 million.
This was driven by an increase in the valuation of its property, plant and equipment of nearly 34% to US$54,13 million for the period under review compared to the prior year.
“The increased carrying value is attributable to capital expenditure mainly in Zambia and Tanzania as well as groupwide PPE revaluation impact that cushioned depreciation and translation losses,” SCG chief executive officer Morgan Nzwere said.
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Consequently, the group ended the period having US$1,95 to every dollar of short-term debt proving the company had enough capital to cover its short-term obligations.
In assessing the carrying amounts of property, plant and equipment, SCIL management considered the condition of the assets and their life span on an item-by-item basis in determining fair values.
“The group remains well-positioned to navigate a challenging macroeconomic environment marked by currency depreciation, inflationary pressures and the ongoing impacts of climate change,” Nzwere said.
“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 the group’s dynamic research and development pipeline was the backbone of its business, driving the creation of valuable intellectual property and supporting its ESG [environmental, social and governance]-led innovation strategy.
“Key growth drivers include rising focus on food security, improved seed stock availability, and better trading conditions in Mozambique,” Nzwere said.
“The group is actively scaling operations in Tanzania and Ethiopia, with upcoming elections in Malawi and Tanzania expected to further stimulate seed demand.
“Increasing volumes in Angola, the DRC [Democratic Republic of Congo] and the broader Lakes Region also signal continued market expansion.
“Operational resilience is further supported by reduced foreign exchange risk through localised borrowings, seed production geographical spread to mitigate climate-induced shortages and growing direct cash sales through the group’s retail outlets.”
He said the group remained confident in its ability to deliver sustainable growth and value creation through disciplined execution, market responsiveness and continued investment in innovation and regional integration.
In its financial year ended March 31, 2025, SCIL achieved a 5% revenue growth to US$124,3 million from the prior year.
This was helped by a better product mix which offset the impact of reduced volume mainly because of stockouts and disrupted trading in Mozambique due to political turmoil after the country’s elections last October.
The revenue increase plus a reduction in finance costs of 42,3% lead to a profit after tax of US$5,7 million from the prior year’s comparative of US$4,9 million.
