LIVINGSTONE MARUFU
Listed seed producer, Seed Co Zimbabwe, is set to commission its US$12m seed dryer plant soon as it moves to increase seed production, it has been learnt.
Construction of the plant commenced in 2019 and was completed this year.
Seed Co managing director Edworks Mhandu told Business Times that farmers would dry their crop in Stapleford at a fee.
“We have invested US$12m into the dryer plant which will be meant for the drying of seeds at a commercial scale. We will rope in those farmers who are into the commercial seed production to also dry their seeds at our plant,” Mhandu said.
He said the dryer will be mainly for maize seed.
It is understood that Seed Co drew down US$12m from the US$25m loan facility the group secured from PROPARCO last year.
The seven-year loan from the French firm is expected to provide the company with liquidity to finance the group’s expansion projects in Zimbabwe and Zambia.
The amount from PROPARCO, which is Agence Française de Développement’s private sector financing arm, would be shared equally by Seed Co Zimbabwe and Zambia.
Seed Co Zimbabwe utilised part of the loan on its dryer and will also fund other operations.
Seed Co Zambia used their tranche towards expanding its operations using its portion.
PROPARCO said the loan would allow Seed Co to finance a corn dryer in Zimbabwe which will double the harvests of farmers (one in the summer and one in the winter) and help improve efforts to address the climate risk.
Seed Co’s dryer project is expected to create 95 additional direct jobs and should support some 14,000 indirect jobs.
The installation of a corn drying unit by Seed Co will also allow external farmers to harvest their wheat earlier in the year — May or June instead of September — thereby reducing post-harvest losses due to disruptions in rainy seasons.
This investment will also contribute to reducing the vulnerability of agriculture to climate change.
In addition, the investments in research and development finance will develop varieties that are more resistant to weather conditions.
The project’s impact will contribute to Sustainable Development Goals which are zero hunger, decent work and economic growth and climate action.
PROPARCO has, for more than four decades, been financing and supporting companies and financial institutions in Africa, Asia, Latin America and the Middle East.
It has also been focusing on the key development sectors such as infrastructure, mainly for renewable energies, agribusiness, financial institutions, health and education.
