SeedCo's 90s Expansion Bet Bears Fruit

Oscar J Jeke- Zim Now Reporter

Zimbabwe’s largest seed producer, SeedCo, is now reaping the rewards of a bold regional expansion strategy initiated in the 1990s.

As the company celebrates its 85th anniversary, its executives reflect on how the decision to venture beyond Zimbabwe's borders over 25 years ago has paid significant dividends.

Founded in 1940, SeedCo initially dominated the Zimbabwean market, controlling nearly 90% of local seed sales by the early 1990s. However, with limited growth prospects in its home market, the company shifted its focus to regional expansion. The pivotal moment came in 1996 when SeedCo listed on the Zimbabwe Stock Exchange, raising funds for research, expansion, and farmer support. By 1998, SeedCo had acquired a 51% stake in Mozambique's Semoc and launched operations in Zambia. Within two years, the company further expanded into Malawi and registered SeedCo International in Botswana.

“In the early 90s, with our market share at almost 90% in Zimbabwe, it became obvious to us that further growth could only come from exploring new markets in the region,” said Morgan Nzwere, SeedCo Group CEO.

At the time of its listing, SeedCo was producing just 1,000 metric tonnes of seed for export, generating US$2 million in revenue. Today, the company operates in multiple African markets, selling more than 50,000 metric tonnes of seed annually and posting a turnover of US$120 million.

SeedCo’s expansion gained additional momentum in 2014 when it partnered with Limagrain, one of the world’s largest seed producers. This partnership significantly bolstered SeedCo’s research and development capabilities, enabling the company to harness advanced technology to create more resilient seed varieties.

“Over the last few years, we’ve seen a surge of global seed companies eyeing Africa. Our partnership with Limagrain in 2014 is a testament to our forward-thinking strategy, giving us important first-mover advantages,” Nzwere noted.

In line with its growth, SeedCo reinvests 10% of its turnover into research and development, a crucial strategy in light of growing climate change challenges. The company operates research stations in Zimbabwe, Mozambique, Zambia, and Kenya, with plans to boost production capacity in these regions. Additionally, SeedCo is investing US$30 million in a new production facility in Arusha, Tanzania, while a recent US$12 million artificial seed drier was commissioned in Zimbabwe to enhance production efficiency.

With over two decades of expansion success, SeedCo’s bold 1990s strategy has proven to be a game-changer, positioning the company as a key player in Africa's agricultural sector.