Innscor VFEX listing boost for agric sector

GOVERNMENT has said the listing of Innscor Africa Limited on the Victoria Falls Stock Exchange (VFEX) is a confidence booster that will unlock wider markets and capital for the agricultural sector.

The diversified and integrated group listed on the VFEX last Friday to become the 9th counter on the United States dollar-denominated bourse.
The Innscor Group procures most of its raw material requirements through local contract farming schemes, having recently supported the planting of 13 000 hectares of wheat to produce 78 000 metric tonnes last season.

Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka

The group supports the ongoing summer maize and soya bean season and expects to have 34 000 hectares under summer-winter seasonal rotation.
Speaking at the listing ceremony, Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, said because they are an integrated diversified group, Innscor will be able to provide the credible off-taker arrangement to assure farmers of the market, thereby bringing confidence.

“Zimbabwe is under sanctions, so this innovation clearly will unlock market and capital development of the agricultural sector primarily, which will then of course feed into the industry,” he said.
“All farmers will grow crops knowing there is a credible off-taker prepared for their effort. A strong transforming agricultural sector is at the epicentre of the President’s Vision 2030 and that vision targets a vibrant and robust agricultural sector, which starts with conglomerates that are far-sighted such as Innscor so that they are able to provide the market for the farmers irrespective of size,” said Dr Masuka.

Innscor Africa Limited

Participation of big firms like Innscor in the farming sector is critical in buttressing the country’s Agriculture and Food Systems Transformation Strategy, which envisions a Zimbabwe that is food secure, eliminating food imports and deepening exports, while creating up to one million jobs by 2025.
Dr Masuka said about 40 percent of raw materials for many businesses come from the agriculture value chain hence the need for its financing. In this regard, he said Innscor was leading the way.

For instance, the group requires 620 000 metric tonnes of maize, soya, and wheat and is producing 20 percent of that.
“This is a strong credible off-taker and the importance of off–takers on the value chain agriculture brings confidence to the growers to know that there is a trusted market,” said the minister.
“The listing on VFEX means Innscor will have the capacity to mobilise sufficient resources to pay farmers timeously seeing there are challenges in the economy to mobilise resources from financial institutions to be able to finance production and purchase from farmers on time.”

Finance and Economic Development Minister Professor Mthuli Ncube who was represented by his deputy, Clement Chiduwa, said through these investments, Innscor is contributing towards the achievement of not only Sustainable Development Goals but the National Development Strategy 1 (NDS1).

“This is being seen through consistent expansion and diversification of business interests and extension of manufacturing capabilities for purposes of delivering high-quality products to the Zimbabwean consumer market,” he said.

Minister Mthuli Ncube

“As you might be aware, the successful implementation of our NDS1 is anchored on several factors. One of the major outcomes is to improve manufacturing sector’s performance through value addition, supported by recapitalisation of the sector.”

Chief director responsible for commerce division in the Ministry of Industry and Commerce, Dr Douglas Runyowa, who was standing in for Minister Sekai Nzenza said Government was excited to see Innscor listing on VFEX, saying this bears testimony to the growth of Zimbabwean capital markets.

Dr Douglas Runyowa

“This has come at a time when the country is midway towards implementation of NDS1 whose ongoing rollout is having a positive impact on our economy as evidenced by the strengthening of key industrial value chains, resultantly aiding this particular listing by Innscor Africa,” he said.
“We hope that the success of this listing will be a catalyst for further foreign portfolio investment and foreign direct investment.
“The VFEX platform provides companies such as Innscor Africa Limited with a gateway for attracting local investors as well as those in the region and beyond.” —chronicle.cl.zw