TSL is engaging other African commodity exchanges, through the Zimbabwe Mercantile Exchange (ZMX), to secure imports ahead of anticipated crop shortfalls from the El Niño weather pattern.
The country’s 2023/24 agricultural season is forecast to receive below-normal rainfall, impacting staple grains and cereals.
“We are working through the ZMX to import commodities from other African exchanges to offset potential deficits caused by El Niño,” stated TSL chief executive Derek Odoteye in an interview with The Financial Gazette.
While irrigated crops like tobacco might benefit from El Niño conditions, Odoteye anticipates production declines in cereals.
The potential financial impacts on TSL are two-fold. While tobacco export volumes could increase, domestic grain prices are likely to rise due to shortages, potentially increasing input costs for TSL’s agri-processing sectors.
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