The Sunday Mail
ZIMBABWE is tipped for marked growth in production and export of sesame seeds after a local company, Cashbox Financial Services — through its subsidiary CFS Agro — contracted 30 000 farmers in the 2020/2021 season. CFS Agro has partnered with a British investor, Mr Clifford Herbertson, who was recently in Zimbabwe to finalise the venture. Our News Editor KUDA BWITI spoke to Mr Herbertson to get an appreciation of the project.
**********
Q: Give us a brief background about your company?
A: My company, Teallach Partners, is a British-based international investment firm with interests in different parts of the world. We have entered into a smart partnership with CFS Agro after seeing the enormous potential Zimbabwe has.
We have access to proprietary capital and our focus is on generating attractive financial returns in addition to creating positive social impact to the people of Zimbabwe. We have access to international off-takers across Asia, Europe, the Middle East and the UK.
Our plan is to build on our deep connection to and familiarity with Zimbabwe, and focus on long-term investment and partnership opportunities.
We are also keen to help Zimbabwe regain her international reputation as the bread-basket of Africa.
Q: What was your motivation to invest in Zimbabwe?
A: When you drive around Zimbabwe, there is so much land that is not being utilised. Part of the reason for the lack of utilisation is a lack of investment, lack of access to finance and a lack of expertise.
I recently spent time speaking with very large grocery wholesalers and retailers in the US and Europe. I asked them if they are currently doing business with Zimbabwe. Almost all of them said they had historically traded with Zimbabwe but have not done so for many years. When I asked them the reasons, I expected to hear responses such as “sanctions” or “political reservations”.
However, they said they stopped trading as they could no longer rely on the consistency of quality and dependability of delivery. All of them said that if these two issues were addressed, they would gladly trade again with Zimbabwe.
Most of them said they were now purchasing from countries such as South Africa, but would like to engage again with Zimbabwe. If you couple the fact that there is massive underutilisation of land with the significant potential to export, this presents a significant opportunity. Pursuing a smart partnership with CFS Agro will enable us to prosecute this opportunity and create dramatic benefits for the country and deserving people of Zimbabwe.
Q: Tell us more about sesame seed and its potential, as well as the project you are pursuing in Zimbabwe.
A: Sesame seed is attractive for many regions of Zimbabwe as it is able to thrive in hot, arid climates. The inputs required are relatively inexpensive and plant monitoring is only needed at the beginning. Zimbabwe has huge potential in terms of sesame seed.
For the 2020/2021 season, we have contracted 30 000 smallholder farmers. The average hectare per household is one hectare.
We expect the farmers to earn around US$300 per hectare with a cost of production of only US$50. We will purchase all crops in US dollars.
We already have off-takers that can purchase all the sesame that we can harvest in Zimbabwe. Seventy-three percent of the farmers that we bought sesame seed from during 2020 were single mothers, hence supporting and promoting empowerment amongst women as well as rural communities. Of the 30 000 smallholder farmers already contracted for the 2020/2021 season, over 50 percent are single-mother farmers.
Q: What are your targets for the next five years?
A: Our target is to reach 175 000 tonnes of sesame seed in Zimbabwe by 2025. This is ambitious, but very manageable.
This will generate over US$25 million export revenue for farmers and the country. To put this target revenue into context, this would be larger than the total exports of the whole horticulture sector from Zimbabwe in 2019. Worldwide, sesame has an annual market value of US$7,5 billion — it is huge!
Sesame production should generate much-needed foreign currency for the country. It will also start to put Zimbabwe back into the minds of European and global buyers for other horticulture products.
Q: Do you have plans to value-add sesame seed?
A: Absolutely! We have plans to create a whole industry. Such an industry requires investment for upgrading and investing in warehousing, packaging, logistics, et cetera, to support and export goods overseas.
We are willing to put investment in place for each of these areas. Where appropriate, we want to allow other farmers and other wholesalers to take advantage of our assets.
We will charge them a commercial rate for doing so. However, we need to have control of what we call the “end-to-end value chain”. That means we cannot rely on other people’s assets or equipment.
We want to put in place our own equipment and we are willing to invest in doing so. In addition to assets and equipment, we will also invest in “value-add” products for sesame seed, such as sesame oil, tahini, sesame seed health bars, etc. By supporting and providing value-add produce, we will create many more jobs in Zimbabwe and generate even more revenue and income for people in Zimbabwe and the country as a whole.
Q: Where have you set up shop besides Zimbabwe?
A: In Africa, we have existing investments in Zambia, Nigeria and Kenya. However, we have not undertaken extensive agriculture activity elsewhere.
We have chosen Zimbabwe to focus our agriculture activity because the country has the land, the climate, the expertise and the underlying capability. We are committed to investing in and supporting Zimbabwe.
Q: What are the potential headwinds for the envisaged project?
A: The country also needs consistency and discipline in order to be successful. Side marketing is endemic across Southern Africa and I see that as one of the most significant issues we may face.
It would not be good if farmers take short-term decisions and instead of fulfilling their contractual responsibilities, they sell their harvest to other buyers who have not invested. Because we have put in heavy investment, we expect farmers to abide by the contracts and halt side marketing.
Honouring these contracts and having discipline will help us to grow together with the farmers and grow the sector and strengthen the country and its people as a whole.
Q: Besides sesame, which other products are you interested to invest in?
A: We are currently looking at cherry tomatoes, carrots, corn, French beans, sunflower seeds and industrial hemp. We will listen to what our off-takers want and understand other products that can be grown and supplied with consistent quality and supply.
But for now, we really want to grow the sesame seed sector in Zimbabwe. Tanzania exports 350 000 tonnes of sesame seed a year.
Currently, Zimbabwe is exporting less than 1 000 a year. But the scope for growth is enormous!
