eBusiness Weekly
Tawanda Musarurwa
Listed seed producer Seed – Co says it intends to focus on import substitution of critical agricultural products to reduce demand for foreign currency for imports.
Seed-Co chief executive officer Denias Zaranyika, said the move is in line with Government policy of export led industrialisation.
Import substitution (IS) entails the reliance on domestic production by a country.
In this case, the exports tend to be greater than the imports with the imports being minimised to restrict competition with local goods.
Experts say import substitution can economise on scarce foreign exchange and ultimately generate new manufactured exports without difficulties associated with the exports of primary products if economies of scale are important in import substituting industries.
‘‘Increased productivity has positive implications on import substitution, general economic output and savings of foreign currency,’’ he said.
He was officiating at the company’s 11 Ton Plus Club Yield Contest, 2018 Prize Giving Ceremony in the capital yesterday.
‘‘Our major focus is now on rice because most of the rice that we consume in the country is imported.
‘‘We need to ensure that Africa produces its own rice, especially Southern Africa, and starting with Zimbabwe.
‘‘The other focus is on potatoes, a lot of potatoes are being imported. Next is canola oil seeds, which will complement soya beans in terms of oil provisions,’’ added the CEO.
Seed Co develops and markets certified crop seeds, mainly hybrid maize seed, but also wheat, soya bean, barley, sorghum and groundnut seeds.
And most of the company’s hybrid and non-hybrid cereals and oil crop seed varieties are proprietary, having been developed and bred its research stations through market-oriented research and breeding programmes.
Zaranyika added that the company would contribute to increasing Zimbabwe’s exports of horticultural products into the region and internationally.
Seed Co is listed on the Zimbabwe Stock Exchange, and its spin-off, Seed Co International is listed on the Botswana Stock Exchange.
The firm’s import substitution drive will help companies in the value chain benefit through forward and backward linkages.
