AFTER a bumper 2024/25 agricultural season that delivered strong tobacco yields, diversified firm TSL Limited posted a sharp earnings rebound and a significantly stronger balance sheet. For the year ended October 31, 2025, total assets rose 11% to US$99,4 million, underpinned by improved cash flows that saw cash reserves surge fivefold. With the 2025/26 season expected to sustain the momentum, the group is leveraging its improved financial position to diversify beyond its traditional agro-based operations. TSL is expanding into property development, logistics and industrial infrastructure as it broadens its income streams. In this interview, TSL chief executive officer Derek Odoteye (DO) speaks with our business reporter Belinda Chiroodza (BC) about the group’s strategy, performance and outlook. Excerpts follow:
BC: What is TSL’s long-term strategic vision, and where do you see the group positioned over the next five to ten years?
DO: Our mission is to be an integral and intelligent handler of all movement and commodities exchange across most value chains, primarily agriculture and mining, both in Zimbabwe and beyond our borders.
BC: Are there opportunities for TSL to expand regionally or increase export-oriented activities, and which markets or segments are most attractive?
DO: TSL is targeting regional growth. Currently, the business exports tobacco wraps and paper into Zambia and Malawi. Our logistics operations run along key corridors, namely Beira and Maputo, and into Zambia and the Democratic Republic of Congo. The business is actively exploring opportunities across the region and will make the right call where there is strategic fit.
BC: What structural or competitive advantages does TSL hold relative to its peers in Zimbabwe’s agribusiness and logistics sectors?
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DO: TSL is a value-chain business focused on transforming ecosystems. Our competitive advantage comes from a combination of our people, our processes and our commitment to delivering consistent value. We prioritise operational excellence and long-term customer relationships, which position us strongly in the market. We also occupy a unique position based on a blend of capabilities and relationships. While I cannot go into specifics, this enables us to deliver value in ways that competitors find difficult to match.
BC: How robust is the group’s balance sheet in supporting growth, particularly in terms of debt capacity versus internallygenerated funding?
DO: Funding for planned growth will be a combination of internal resources, debt and partnership capital. The group’s balance sheet is well-positioned to support growth. Our gearing levels provide sufficient headroom to raise debt that complements funding from internal resources and partnership capital.
BC: Given the stronger balance sheet, are there renewed plans to pursue acquisitions or similar strategic assets, considering the failed Nampak Zimbabwe deal?
DO: TSL is focused on three key organic growth initiatives in the current financial year. These include the development of HGPV in Harare South into approximately 1 900 residential and commercial stands; the Rutenga Inland Port — an inland port operation established by Bak and DP World — providing multimodal solutions through road and rail across the region, which will significantly increase capacity; and the HFC development, involving the construction of two additional world-class warehouses of approximately 8 000 square metres on an existing group-owned site. The group actively seeks sustainable step-change growth opportunities and will consider acquisitive growth where it aligns with our stated strategic objectives.
BC: Is TSL considering partnerships or joint ventures as part of its growth strategy, either locally or regionally?
DO: Our view is simple: when a partnership amplifies value for customers, shareholders or the market, it is worth exploring. Joint ventures and partnerships are therefore a deliberate part of our growth model. We have consistently leveraged such arrangements to accelerate growth. Our approach is to work with organisations whose capabilities complement ours, creating shared value without compromising our core strengths.
BC: What is the group’s planned capital expenditure for the current financial year, and which segments will receive priority investment?
DO: As reported in our financial results for the year ended October 31, 2025, capital commitments at the beginning of the financial year amounted to approximately US$15,6 million. This expenditure is earmarked for the development of 73 hectares of land, the inland port at Rutenga, warehouse space expansion, and other projects aimed at replacing and expanding operational capacity.
BC: From input supply through to marketing and distribution, where do you see the main inefficiencies in Zimbabwe’s agricultural value chain, and what role is TSL playing in addressing them?
DO: We are focused on strengthening market linkages by championing integrated value-chain partnerships that bring input providers, producers, processors and off-takers closer together; driving efficiency and commercial discipline through better-structured markets and data-driven decision-making; and supporting investment in storage, logistics and distribution infrastructure to reduce post-harvest losses and improve supply consistency.
BC: Which business segments are most exposed to margin compression, and what levers does management have to protect profitability should volumes soften?
DO: Our agricultural inputs segment has been most susceptible to margin compression. We are therefore investing in products that we manufacture under licence or produce ourselves to drive volume growth and improve profitability. As you may be aware, we recently invested in a new animal health plant with the capacity to produce remedies for both the domestic market and export. These are the types of investments we will continue to pursue to grow our market presence.
BC: How is the multi-currency operating environment affecting planning, cost structures and price predictability, and how are these risks being managed?
DO: The current stability in the multi-currency environment has supported planning and pricing. However, currency fluctuations remain a reality and must be proactively managed to create and preserve value.
BC: Climate variability is increasingly affecting agricultural output. How is TSL integrating climate-smart practices and risk mitigation across its operations?
DO: Climate variability has become a defining feature of Zimbabwe’s agricultural landscape. Shifting rainfall patterns, recurrent droughts and rising temperatures are disrupting production cycles and heightening food security risks. Post-harvest systems are also vulnerable, with inadequate storage and handling infrastructure leading to elevated losses. To address this, we are investing in modern storage and handling infrastructure across our value-chain touchpoints, strengthening logistics and distribution planning to reduce weather-related disruptions, and providing technical assistance by educating farmers on climate-smart agronomic practices.
BC: What is the outlook for the coming financial year, and which indicators should investors and analysts monitor most closely over the next six months?
DO: The group is cautiously optimistic about the outlook for the coming financial year, recognising that sustainable growth is influenced by economic conditions and climatic factors. Our strategic priorities will centre on delivering sustainable growth while enhancing profitability and liquidity through improved operational efficiencies, technology-driven process optimisation, and disciplined cost and treasury management. TSL will commence development of its 73-hectare land bank in Harare South in the second quarter of the 2026 financial year. Once completed, the project is expected to deliver approximately 1 900 residential stands, as well as commercial stands and community amenities. To enhance service excellence, the group began refurbishing and modernising Agricura branches during the year, with the programme set to roll out nationwide in the following year.
BC: Anything else?
DO: TSL is also well-positioned to leverage projected growth in tobacco crops, supported by investments in process optimisation and warehouse space expansion. According to the Tobacco Industry and Marketing Board, the area under irrigated tobacco increased by 22% to approximately 24 000 hectares, while total planted area also rose by 22% to 113 536 hectares compared with the previous season. While farmer participation continues to increase, national output will depend on rainfall performance and curing capacity availability.
The group will also prioritise the operationalisation of the Rutenga multimodal inland port following the successful completion of all regulatory approval requirements.