Farai Mabeza
Global seed companies are increasingly turning their attention to Africa, intensifying competition for established regional players, according to Seed Co chief executive officer Morgan Nzwere.
Speaking during a media and analysts briefing, Nzwere said the seed industry across the region is becoming more competitive as leading international companies expand their footprint in African markets.
\"Competition, like in any other industry, we see competition intensifying. All the big seed houses in the world are coming to this part of the region. We can see competition is intensifying quite a bit,\" he said.
Despite the growing rivalry, Nzwere said the long-term outlook for the agricultural sector remains positive, with African governments continuing to prioritise food security through policies and programmes that support farming activities.
\"We are seeing climate change issues becoming more and more pronounced. Government policies across Africa continue to prioritise food security and we see continued government involvement in almost all the markets that we operate in in terms of supporting agricultural activities,\" he said.
Nzwere also pointed to an improving political environment in several of Seed Co\'s key markets, saying greater stability would support the company\'s operations, particularly in remote farming communities.
\"The political landscape, over the last year, has been fairly stable after the post-election violence that we saw in Mozambique and in Tanzania,\" he said.
While Zambia heads to elections on August 18, Nzwere said the situation remains calm, adding that Ethiopia\'s return to peace following years of civil conflict is also encouraging for the company\'s business.
However, he warned that global geopolitical tensions continue to drive up operating costs across the agricultural value chain.
\"When we look at the conflict in the Middle East and its impact on business, the main items that we\'ve seen being affected are fertiliser,\" he said.
Nzwere noted that fertiliser prices have risen by between 25 percent and 69 percent across Seed Co\'s major markets, while fuel costs have increased by 14 percent to 43 percent and logistics costs by between 14 percent and 42 percent, placing additional pressure on agricultural businesses across the region.
