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The High Court has ordered Credcorp, a local company in Zimbabwe to pay Seed Co Limited US$1.1 million after Credcorp failed to fulfil a seed production contract.
Seed Co is a Zimbabwean company that supports seed crop production by providing sponsorships to growers. They supply farmers with parent seeds and cover the production costs associated with growing new seed crops. The farmers cultivate the seed crops according to specified practices, and after harvest and processing, they deliver the seed-produced to Seed Co.
The value of the newly produced seed is determined through negotiation, <a href="https://www.herald.co.zw/local-firm-to-pay-seed-co-us11-mln-for-contract-breach/">The Herald</a> reported. Seed Co deducts the initial production costs and the cost of the parent seed provided, and the remaining profit is shared with the grower.
The Case
Seed Co took legal action against Credcorp after the latter breached their agreement for seed production in the 2018/19 season. Credcorp failed to deliver the contracted seed crops of soya bean, sugar bean, and sorghum from its four farms. Instead, Credcorp sold a significant portion of the seed to third parties, which is known as “side marketing.”
Seed Co alleged that at a meeting between the parties, it was agreed that Credcorp would trace the side-marketed seed and repay the production costs plus the cost of some equipment. However, Credcorp denied these claims and argued that a settlement agreement had been reached, which Seed Co allegedly did not fulfil.
The High Court ruled in favour of Seed Co, stating that Credcorp did not provide sufficient evidence to support its claims. Justice Joseph Mafusire ordered Credcorp to pay Seed Co US$1,014,483 with interest, as well as cover the costs of the lawsuit.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Credcorp Ordered To Pay Seed Co $1.1 Million For Breach Of Contract

<a href="https://www.pindula.co.zw/Seed_Co_Limited">Seed Co Limited</a>, Zimbabwe’s largest seed producer, intends to list on the <a href="https://www.pindula.co.zw/Victoria_Falls_Stock_Exchange">Victoria Falls Stock Exchange (VFEX)</a> after receiving board approval to depart from the <a href="https://www.pindula.co.zw/Zimbabwe_Stock_Exchange">Zimbabwe Stock Exchange (ZSE)</a>.
If the plan goes through, the company will follow in the footsteps of Seed Co International, a sister company, which became the first counter to list on the forex-indexed exchange when it began trading in October 2020.
However, Seed Co stated in a regulatory filing with the ZSE yesterday that following board approval, the VFEX listing plan was back on track and that more announcements would be made, NewsDay reported citing the firm’s statement. Reads the statement:
<blockquote>
Shareholders of Seed Co Limited and the investing public are advised that the board has approved the migration of the company’s listing from the Zimbabwe Stock Exchange to the Victoria Falls Stock Exchange.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s securities. Further announcements will be made in accordance with regulatory requirements as and when there are material developments.
</blockquote>
The Pan-African Seed Breeder resumed trading on the ZSE in June 2021, almost eight months after ceasing it in order to pursue the VFEX listing. 
As part of the agreement, Seed Co would collaborate with Seed Co International Limited, a subsidiary listed on the Botswana Stock Exchange (SCIL).
The seed empire’s combined assets would subsequently be transferred to VFEX.
Directors of the Seed Co group were certain that a VFEX listing would help the company achieve its expansion goals because the new bourse deals in foreign exchange at the time.
Imara, one of Zimbabwe’s largest advising firms, expressed worry about the acquisition, claiming it disadvantaged native investors.
It said should Seed Co. Zimbabwe be delisted and entirely bought by SCIL, it won’t be shocking to see Limagrain buying out the minorities of SCIL in the future, thereby depriving African investors of the chance to own such a profitable company. 
The <a href="https://www.pindula.co.zw/Reserve_Bank_of_Zimbabwe">Reserve Bank of Zimbabwe (RBZ)</a> turned down the proposal.
<h2><a href="https://zero.pindula.co.zw/">More Pindula News</a></h2>

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