HARARE: The local seed industry has roped in investors to avoid collapse after failing to fund their operations, an official has said. The industry was affected by delayed payments by some large organisations and has had to find alternative sources of funding. Zimbabwe Seed Trade Association (ZSTA) chairman Mr Walter Chigodora told The Herald on Monday that the seed industry was affected by economic challenges. The local seed maize industry has been under severe financial stress in recent years where the seed companies business model has changed.
“Delayed payments by some large customers, coupled with having to financially support seed growers unable to secure their own funding has forced seed companies to find alternative resources to avoid collapse. Local borrowings had reached maximum limits leading to insufficient funding required within the sector to meet seasonal business operations,” said Mr Chigodora. “In line with Zim-Asset policies, seed companies cast the net beyond borders and have managed to bring investment in the local seed industry.”
Mr Chigodora said local companies would benefit from investors who bring in experience, security and funding to ensure the industry remains vibrant. He said the country would not adopt production of genetically modified seed as this was against Government policy.
Mr Chigodora said the industry operated in line with the legal structure for the seed industry through the Seed Act and Seed Certification Scheme, which regulated the sector. “All seed companies abide by these laws. Currently, GMOs are not permitted and these seeds will not be grown or brought into the country.
“Zimbabwean genetics are highly respected and have been developed over many years, going back to before 1960, with the introduction of SR52 white maize hybrid, a first in the world. Local genetics are developed to suit the regional environment,” he said Mr Chogodora said local seed production will continue as always to ensure the local market has adequate seed.
“Where surpluses arise, this can provide opportunities for exports. Conversely, with regional connections, shortfalls in the local market can be supplemented from neighbouring countries, thus assuring continuity of seed supplies,” he said.
