SA firm invests $5m in Agriseeds

Kudakwashe Mhundwa Business Reporter
South Africa’s Klein Karoo Saad Bemarking has invested about $5 million for the recapitalisation of its 80 percent owned local seed manufacturing company, Agriseeds.

Klein Karoo Saad Bemarking which is a subsidiary of Johannesburg Stock Exchange listed ZAAD Investment is also planning to invest a further $2 million in the next two months. In 2014, ZAAD Investments acquired an 80 percent stake in the seed manufacturer which was jointly owned by Royal Crown Investments Limited and Chagaris (Pvt) limited which now own the remaining 20 percent.

Speaking on the sidelines of a field day at the National Defence College on Friday, Agriseeds managing director Simon Munetsi told The Herald Business that the technical partner has invested $5 million towards the recapitalisation of the company. “An investment of $5 million has already been made on the company’s operations since takeover by Klein Karoo Saad Bemarking. A further $2 million will be availed in the next two months. “We are trying to capacitate the research side of our organisation because that is where most of our business lies and so far $4 million has been invested in line with our research objectives,” said Mr Munetsi.

He said the company is looking at increasing its growth rate by 25 percent in the next five years. “Our vision in Zimbabwe is on growing our business and to produce better products for the country. Within the next five years we should have grown by 20-25 percent. Currently we are producing 4 000-5 000 tonnes of seed per season,” said Mr Munetsi.

The acquisition of Agriseeds was aimed at reviving the company by addressing debt issues at the same time injecting fresh capital.