You are currently viewing Kwacha gain positive for business – Seedco

Kwacha gain positive for business – Seedco

SEEDCO Zambia International Limited says the Kwacha appreciation will impact positively on its business as most of the chemicals used to produce commodity are bought in the United States (US) dollar.
The Kwacha has been appreciating and trading in the range of K9.80 and K9.90 since last week
In an interview on Wednesday Seedco Zambia quality controlling officer Allan Mfune said the company buys chemicals in dollar and if the Kwacha depreciates the chemicals become expensive.
“We usually sell our commodities [farm inputs] at the prevailing rate. for example, soyabeans which we have been selling in dollars because of that volatility of the Kwacha/dollar rate. We are doing that so we cater for any fluctuations,”
“At the moment, we are not excited because we do not know whether it has stabilised. It keeps on fluctuating, not until it stabilises, that is when we can be certain,” he said.
Mr Mfune, however, said there is a possibility of making losses after the Kwacha has appreciated if chemicals in stock were bought at a time when the dollar was still high.
“When Kwacha appreciates, it depends if we are going to be positively affected because if we buy inputs at a price when the Kwacha has depreciated against the dollar then, it means that we are losing out,” he said.
Meanwhile, Mr Mfune said the company in the 2016/17 farming season plans to produce 20,000 tonnes of maize seed and 10,000 tonnes of soyabean.
He said the coming season; the firm is targeting to venture into new export markets in Namibia and Burundi.
Currently, the company is exporting to Tanzania, Malawi, Rwanda, Zimbabwe, Botswana, the Democratic Republic of Congo, Kenya, Uganda, Angola, Swaziland and South Africa among others.