Online Reporter
Business Reporter
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, a research firm has said.
The group, which has operations across Africa, delivered a strong performance in financial year 2025, with revenue nearly doubling to US$71,2 million year on year and volumes growing by 52 percent, led by standout gains in maize (91 percent) and soybeans (59 percent).
Stockbroking and equities firm FBC Securities, in its Seed Co Limited earnings review, said the company benefited from a diversified sales mix, with approximately 90 percent of revenue US dollar-denominated and more than half generated from export and open-market channels, supporting improved liquidity and reduced reliance on government contracts.
“SCL remains well-positioned to benefit from Africa’s structural food security demand, ongoing regional seed shortages, and its broadening retail and export footprint. Near-term focus should be on financial reporting remediation and receivables management,” the firm said.
Group chief executive officer Mr Morgan Nzwere told an analyst briefing recently that the group was continuing to globalise its research and development so that it can come up with varieties that do well in unique environments outside Zimbabwe.
He said most of the group’s research assets were based in Zimbabwe, but the group was now strengthening regional research assets to strengthen its position in the region.
“We are strengthening our assets in East Africa. In West Africa, a new rice and yellow maize breeding station is under establishment,” said Mr Nzwere.
He also indicated that this year, the group released several varieties in Malawi, Nigeria and Kenya, ensuring that the product basket remained broad enough to be able to meet customer demand.
“We also released some wheat varieties and some sunflower varieties in Nigeria and Tanzania because we are seeing these markets becoming more important for these products,” said Mr Nzwere.
Another stockbroking and equities research firm, IH Securities, said the La Niña weather event had ushered in more favourable conditions to support a good agricultural season on the back of the devastating El Niño-induced drought.
“At SADC’s Southern African Regional Outlook Forum (SARCOF-30), it was predicted that there would be normal to above-normal rainfall from February to June 2025.
“This has a potential upside to sales volumes in the region moving forward,” IH said.
However, it noted perennial climatic risks, such as flooding, that may impact the agricultural season and currency stability concerns in countries such as Malawi.
IH said Seed Co was expected to maintain its market position as it taps further into Ethiopia and Tanzania, expanding its geographical footprint and introducing new drought-resistant seed varieties.
