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Sunday, January 16, 2022

Seed Co Rebounds as Zambia’s Kwacha rises

Economy Seed Co Rebounds as Zambia’s Kwacha rises

Seed Co International Limited says stronger Zambian kwacha rebound inspired by positive sentiment in Zambia boosted volumes and sales during the half year ended September 30, 2021.

Seed Co’s review period coincided with the election, in a landslide victory, of new President Hakainde Hichilema to office, after beating former president Edgar Lungu.

Mr. Hichilema hit the ground running with immediate engagements with big lenders including the International Monetary Fund (IMF), promising to work out a concrete solution to Lusaka’s debt crisis.

Mr. Hichilema’s international goodwill and promise to do things differently immediately fired up the Zambia kwacha, which bounced-back against the United States dollar.

Still, Mr. Hichilema faces the task of turning around copper-rich Zambia from near-bankruptcy to a stable economy, but as Seed Co said this week, firms have benefitted from his reforms.

The Zambian market is a key factor in the pan-African giant’s operations, which cut across east, west and southern African markets.

“Effective US dollar selling price increases in Zambia, benefitting from the post-election kwacha appreciation, further enhanced revenue and gross margins,” chief executive officer Morgan Nzwere said.

Mr. Nzwere’s commentary came as financial results for the period showed revenues rising to US$35,5 million, compared to US$27,9 million previously.

However, profits slowed to US$1,5 million during the period, compared to US$2,5 million previously, as overheads charged in line with higher distribution costs and expenses associated with a massive push for stronger sales in “the nascent Ethiopian and Mozambican markets”.

Strong sales volume growth was recorded due to early seed dispatch to customers in Malawi and Tanzania, thanks to a healthy stock carry over position,” the Seed Co CEO said.

“The period under review witnessed the gradual relaxation of lockdown restrictions and border closures as the Covid-19 pandemic situation somewhat eased off as vaccination programmes in the various countries the group operates gathered pace.

“This was a huge boost to the group’s seed movements across regional borders. During this period, the main activities are the harvest of raw seed produced by growers and its subsequent delivery to the factories for processing in preparation for the upcoming selling season,” he said.

In July, Seed Co International said it was set to bolster its African ambition through State-backed food security interventions in Malawi and Zimbabwe, where it saw growth opportunities unravelling as Harare braces for landmark polls in 2023.

Like in Zambia’s case, poll time has traditionally unlocked market opportunities for the firm that has made aggressive forays into Africa from its Zimbabwe base.

17 COMMENTS

  1. Stop dreaming. The kwacha has not appreciated.i am a business man and I know what is pertaining. Lusaka times can you be responsible in your reporting

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  2. For the first time in his life KZ is right. The Kwacha has only depreciated – slowly but consistently – since election day. It’s on K17.82 to the US dollar today as per Oanda. Nothing to shout home about! LT you should check your facts before reporting blatant lies!

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  3. Why is the seed company’s “rebound” connected to HH seeking IMF loan and to international goodwill. And to a promise to do things differently immediately fireeing up the Zambia kwacha, We arent fools. we can see this is propaganda reporting.

  4. True LT is not being professional. Why is the seed company’s “rebound” connected to HH seeking IMF loan and to international goodwill. And to a promise to do things differently immediately fireeing up the Zambia kwacha, We arent fools. we can see this is propaganda reporting.

  5. We are anxiously waiting for the kwacha to appreciate, but as of now it is in the doldrums and there seems to be very little hope for our loved Kwacha.
    We in diaspora check on it every now and then no one can lie to us we are tuned to it.

  6. Now now people why do you want to call a rabbit an elephant to a person with sight. Each time we have a new man at State House, we want to tell lies just to get favours. Come on even a blind person knows the direction the Kwacha has taken.

  7. The kwacha in region 15-18 to the dollar is the right realistic range…….. .

    Anything out side is either ” engineered ”
    or bad governance………

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  8. The Kwacha has rebounded from K23.98 to $1 on the day of the elections to K17.90 to $1 today. It is so nauseating at how financially and economically illiterate most Zambians are. Seedco is celebrating because the circa 25% appreciation entails increased profits in dollar terms. They are getting more dollar for their Kwacha. It is the same with Zambia’s GDP and per Capita income. When the Kwacha depreciates, the dollar value of these measures also take a dip. When the Kwacha appreciates you get more dollars for your Kwacha. Please countrymen, stop being cadres driven by partisanship and emotion. Try logic and rationality sometimes……it won’t make you appear ignorant and uninformed.

  9. Im also amazed at “hit the ground running” when we could all see how lost HH and his gang were after elections even up to now they are still appointing civil servants four months after being voted in. What plan can this be if not Chimbwi’s?

  10. Kaizar Zero and yet for 10yrs Zambia’s economy was going downhill yet you PF niggas didn’t have a clue as to what was wrong?

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  11. #11 Francis. I think you can do better than that. More than a month before elections the Kwacha appreciated from that K23 to K15.00 and you people were claiming that it was just being manipulated because of elections. From 15 it has since gone to 18. Just say the truth and find ways to stabilize it. In Bemba we say uku bepa akabwa umusheto

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