SHAREHOLDERS of SeedCo Limited are in for a dividend drought as management withheld the pay-out, alleging lack of free cash flow due to the government’s delay in paying for the seed that was supplied the previous year.
The government of Zimbabwe is the largest off taker of seed from local producing companies which it distributes to small holder farmers through various programs such as the Presidential Input Scheme.
In an interview on the sidelines of the company’s analyst briefing, SeedCo group chief executive Morgan Nzwere said despite posting an inflation adjusted profit for the year ended March 31, 2024, it was prudent not to declare dividend due to lack of insufficient funds.