Seed Co International boosts regional expansion with US$7.24m FY26 capex

📅 Published: August 19, 2025

📰 Source: businesstimes

Curated by AllZimNews.com

For the year to March 2025, SCIL achieved 5% revenue growth to US$124. 3 million, despite sales volumes being constrained by stockouts and political unrest in Mozambique following elections last October.

Management said a more favourable product mix and better trading conditions in Mozambique partially offset the decline.

In addition, finance costs fell sharply by 42. 3%, boosting profitability.

SCIL posted a profit after tax of US$5. 7 million, up from US$4. 9 million in FY24. “This performance demonstrates operational resilience in the face of adverse conditions,” Nzwere said.

Looking ahead, SCIL is betting on political cycles and rising food security concerns to fuel demand.

In Malawi and Tanzania, upcoming elections are expected to stimulate seed purchases as governments typically expand agricultural support programmes during campaign periods.

Elsewhere, the group is actively scaling operations in Ethiopia, while demand growth in Angola, the Democratic Republic of Congo (DRC), and the broader Lakes Region continues to build momentum. “Key growth drivers include rising focus on food security, improved seed stock availability, and better trading conditions in Mozambique,” Nzwere noted. “Increasing volumes in Angola, the DRC and the broader Lakes Region also signal continued market expansion. ” To safeguard against volatility, SCIL has deliberately reduced foreign exchange risk by turning to localised borrowings across its markets.

The group has also diversified seed production geographically, a move aimed at cushioning climate-related supply shocks.

Direct cash sales through its own retail outlets are also on the rise, improving margins and reducing dependency on third-party distributors.

Analysts say SCIL’s strategy reflects the shifting dynamics of agribusiness in Africa, where multinational seed firms must increasingly balance profitability with food security imperatives.

With climate change reshaping weather patterns, regional players like SCIL are investing in adaptive research and wider distribution networks to stay ahead.

The group’s ability to sustain profit growth, maintain a strong liquidity ratio, and expand regionally positions it as a key player in the continent’s agricultural transformation agenda.