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KUTSAGA — a Government agricultural research hub — has made significant strides in the agriculture sector, securing 19 local and international accolades. Its revenues exceeded budget projections by 36 percent in 2024, driven by various commercial activities. The Sunday Mail’s THESEUS SHAMBARE spoke to Kutsaga chief executive officer Dr FRANK MAGAMA on the key milestones, initiatives and focus on achieving Vision 2030, which is aimed at creating an empowered, prosperous and modern country within the next five years.
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Q: How would you assess Kutsaga’s overall performance in 2024? What were the major highlights and challenges faced?
A: Our institution has made significant strides over the past year, demonstrating our commitment to transparency, financial integrity and sustainable development.
We successfully held our annual general meeting, presented unqualified audited financial results and completed our solar project, enhancing operational efficiency and reducing our environmental footprint.
We have also made progress in shaping our research agenda through annual planning meetings informed by stakeholder input.
Our strong ties with our stakeholders led to the completion of a state-of-the-art greenhouse, financed by TLEAZ and equipped with solar backup.
However, the current economic environment has posed considerable challenges.
The depreciation of the Zimbabwe Gold currency against the USD has created a revenue-expenditure disparity.
The gap between official and black market exchange rates, coupled with suppliers’ preference for USD transactions, has compounded these difficulties. To navigate this landscape, we have focused on cost containment and proactive adaptation to ensure our institution’s resilience.
Q: What were the key financial milestones achieved during the year? How did Kutsaga navigate economic challenges and uncertainties?
A: Kutsaga’s financial performance for the period ending September 30, 2024 was outstanding.
Total revenue exceeded budget projections by 36 percent and demonstrated a 40 percent growth compared to the previous year.
This success was largely driven by our diversified commercial activities, which accounted for 72 percent of total revenue, while the tobacco levy contributed the remaining 28 percent.
Our strategic move to diversify into commercial activities has transformed Kutsaga from an institution entirely reliant on the tobacco levy to one that has achieved a degree of self-sufficiency.
We will continue to strengthen and expand these activities to maintain resilience in a volatile macroeconomic environment.
Q: How has Kutsaga prioritised customer satisfaction and loyalty in 2024? What strategies were implemented to enhance customer experience?
A: To elevate customer satisfaction, we implemented a multi-faceted strategy. This included comprehensive staff training, a robust feedback mechanism and operational changes based on customer suggestions.
We also introduced discount deals, enforced stringent quality control measures and maintained open communication channels.
Our efforts have yielded positive results. The 2024 customer satisfaction survey, conducted by Research Matters, revealed a customer satisfaction index (CSI) of 81,9 percent, a 4,5-percentage point increase from the previous year’s CSI of 78,4 percent. This demonstrates our commitment to continuous improvement and customer-centricity.
We have also redesigned our sales offices to give more ambience and opportunity for more interaction with clients.
Q: What innovative initiatives were undertaken to drive growth and efficiency, and how has Kutsaga leveraged technology to improve operations and services?
A: To boost production output, we restructured our leadership, appointing an executive director for production and operations. This strategic move prioritises production-oriented centricity, ensuring a steady supply of high-quality products.
We are driving growth through several key initiatives.
We are leading the Government’s effort to replace imported seed potatoes with locally produced varieties. Additionally, we are researching on industrial hemp and medical cannabis strains suitable for Zimbabwe’s climate.
We are also harnessing the power of technology and artificial intelligence to drive efficiency and growth of agriculture.
Our innovations committee is spearheading technological advancements, including a satellite imagery analysis project to estimate tobacco production areas.
Furthermore, we are developing a mobile app for tobacco disease diagnosis and management options.
We are poised to expand our regional presence with our bio fungicide (trichoderma), starting with Mozambique, where the product is in high demand.
Q: What social responsibility programmes did Kutsaga implement in 2024?
A: Kutsaga is dedicated to community development and sustainable agricultural production.
Specifically, we support the Government’s reforestation efforts by distributing gumtree seedlings.
To date, we have distributed over one million gum trees to tobacco-producing districts, which enhances learning environments and provides income for schools.
Our commitment to social responsibility has earned us the Corporate Social Responsibility Award from the Institute of Public Relations and Communication Zimbabwe.
Additionally, we have supported the Presidential Rural Development Programme by supplying over one million elite sweet potato plantlets to all provinces. This initiative promotes a climate-smart crop with strong export potential.
As part of our ongoing commitment to the community, this year we will donate clothing and food items to Tariroyashe Orphanage in Kadoma, spreading holiday cheer to the children.
Q: What are the key priorities and strategic goals for Kutsaga in 2025?
A: Kutsaga is committed to contributing substantially to the implementation of the Tobacco Value Chain Transformation Plan, aligning with the national vision.
We prioritise Industry 4.0 technological advancements, investing in modern equipment to drive efficiency and innovation.
To support this agenda, we are focusing on revenue growth, upgrading our facilities and enhancing our resilience against economic shocks.
We are exploring the opportunities presented by the African Continental Free Trade Area to expand our market reach.
To ensure laboratory service continuity and mitigate drought impact, we have implemented strategic initiatives, including solarising our institutions to enhance energy security and commissioning a three-year hydrogeological study on Kutsaga Research Station to develop effective drought mitigation strategies.
Q: What steps has Kutsaga taken to attract, develop and retain top talent?
A: We appreciate our board of directors for their ongoing support in reviewing staff compensation and benefits.
Despite economic challenges in 2024, our staff satisfaction index rose from 63 percent to 70 percent, and our remuneration index increased from 22 percent to 37 percent. This is a testament of our dedication to enhancing staff welfare and well-being.
To promote a healthy work environment, we have launched wellness initiatives, including the monthly “Dr Kuts Run/Walk” event and seminars on health and financial topics.
These have fostered camaraderie and contributed to a more positive workplace culture.
Q: How has Kutsaga managed risks and uncertainties in 2024?
A: Our institution has a strong risk management framework led by our internal audit division, which identifies and prioritises risks to develop effective mitigation strategies. Our compliance function within legal and corporate services manages legal risks and ensures regulatory adherence.
Both units provide quarterly reports to the risk management sub-committee of the board of directors to integrate risk and compliance into decision-making.
In response to the WHO (World Health Organisation) Framework Convention on Tobacco Control, we are exploring alternative uses of tobacco, such as industrial hemp and medicinal cannabis, to future-proof our institution and ensure long-term sustainability.
Q: Since rebranding, what positives have you recorded to date?
A: We have made significant progress that has been recognised both globally and locally.
Our efforts in rebranding have led to increased visibility, which is one of our key objectives to enhance brand image and equity. Our CSI is improving, as is our employee engagement index.
Additionally, we are operating with a budget surplus due to strong demand for some of our products.
As part of our rebranding initiatives, we have received eight innovation accolades from various organisations, including the Zimbabwe National Chamber of Commerce and the Presidential Innovation Fair Awards.
We were also honoured to be named the second runner-up for the Best Innovating Research and Development Institution by His Excellency, Dr Mnangagwa.
Overall, we are witnessing positive impacts across many aspects of our organisation and in our operating environment.
Q: How do you see the new products you are now producing transforming Zimbabwe?
A: Our research and commercialisation efforts are driven by a commitment to addressing client needs and challenges. We translate effective research outcomes into commercialised products that enhance profitability, reduce production costs and lighten workloads for our clients. By developing sustainable solutions, we aim to improve livelihoods for Zimbabweans and foster a knowledge-driven economy.
For example, our climate-smart, multi-disease-resistant varieties offer significant benefits to growers.
These varieties not only reduce reliance on expensive chemicals but also thrive in challenging environments, providing the right genetics for success in marginal production zones.
Online Reporter