Conflicting interpretations of SI triggers pricing instability, says Innscor
CLOUDINE MATOLA
Publicly traded diversified group, Innscor Africa Limited, says Statutory Instrument (SI) 87 of 2025 has contributed to inflationary pressure and pricing uncertainty in maize and soya-based products, attributing the disruption to conflicting interpretations of the policy’s implementation.
The government introduced SI 87 of 2025 to strengthen domestic agriculture and curb imports of grains and oilseeds, with the objective of encouraging greater local sourcing by processors.
In a trading update for the quarter to March 31 2026, company secretary Andrew Lorimer said authorities were being engaged to clarify the instrument in order to ease pressure on consumers.
“…SI 87 of 2025 (Agricultural Marketing Authority (Grain, Oilseed and Products) (Amendment) Regulations (No 2)), gazetted on 5 September 2025, is intended to promote the development of local grain and oilseed production through increased local sourcing by processors,” Lorimer said.
“However, conflicting pronouncements and interpretations regarding its implementation have created inflationary pressures and pricing uncertainty for maize- and soya-based products. Engagements with the authorities are ongoing, and the Group remains hopeful that the SI will be clarified to deliver a practical outcome that removes current inflationary pressures on consumers while achieving the objective of supporting domestic agricultural production.”
Despite the policy uncertainty, Innscor said performance across its divisions remained firm during the period, with management focused on sustaining volume growth while preserving affordability.
The group said it continues to prioritise operational efficiency, optimised procurement and distribution, and margin enhancement in response to a volatile policy and commodity environment.
“Management remains focused on sustaining volume momentum across the Group’s diversified portfolio, while maintaining disciplined pricing strategies that preserve affordability and market relevance,” Lorimer said.
“Continued emphasis is being placed on operational efficiencies, procurement optimisation, and route-to-market improvements, alongside margin enhancement. The group remains mindful of evolving domestic policy dynamics and heightened uncertainty in global commodity markets, with continued focus on disciplined working capital management, strong free cash generation, and prudent capital allocation.”
Innscor said its bakery division recorded a 28% increase in loaf volumes in the period, driven by the commissioning of a new production line.
It added that a further bakery line at its Harare facility is currently being commissioned and is expected to come on stream before the end of the financial year.
The group also said it remains in dialogue with authorities over policy adjustments it believes are necessary to support the long-term viability of the domestic beverage manufacturing sector, amid concerns over imported competition.
“Ongoing engagement continues with the authorities, with the hope that appropriate policy refinements will be introduced to ensure the long-term sustainability of local beverage manufacturing, and to enable locally produced beverages to dominate domestic shelves rather than imported products,” Lorimer said.
