Zimbabwe’s biggest seed producer, SeedCo, has managed to recover a quarter of the US$40 million it is owed by the government, securing US$10 million of the outstanding balance.
SeedCo Group CEO Morgan Nzwere confirmed the development, saying the company has been engaging with authorities to recover the debt. He said:
“We’ve also managed to collect 25% of what was owing from the Zimbabwe government.
“We keep engaging [government], we keep looking at ways to expedite the collection of the remaining balance, but we are all aware of the liquidity challenges that do exist.
“We are grateful for that 25% we’ve collected so far, and we’ll keep engaging government to try and see how we can expedite the collection of the balance.”
SeedCo is positioning itself to take advantage of Zimbabwe’s increasingly informal agricultural market, a strategy expected to boost revenue for the upcoming farming season amid reduced government involvement in the distribution chain. Said Nzwere:
“We also continue to notice low disposable incomes in the economy, and we’re noticing increased informalization.
“So business is moving from the big retail shops and the little corner shops are sprouting up everywhere.
“And the customers are actually moving, following the business to these informal shops.”
More: Business Times
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