As Zimbabwe’s economy continues to battle persistent inflation, currency volatility, and global headwinds, a few companies have managed to chart a steady path forward. TSL Limited, one of the country’s most diversified agro-industrial groups, stands out for its resilience and forward-looking strategy. From logistics and warehousing to packaging and agribusiness, the group has maintained momentum — while preparing for a major acquisition that could redefine its future. In this wide-ranging interview, TSL chief executive officer Derek Odoteye (DO) speaks to business reporter Ashton Ndakusiya (AN) about the group’s investment priorities, strategic pillars, and outlook for 2025:
AN: TSL has remained resilient in the face of persistent currency volatility and inflation. What is driving that strength?
DO: The resilience comes from our focus on enabling value chains, which are essential to the economy, particularly agriculture and mining. Our business model is built around making those value chains work better. Whether it is the producer, the trader, or the processor, we identify their pain points and tailor our services accordingly — from inputs to logistics, warehousing, packaging, and market access.
AN: How about your clients? Tell us about their profile
DO: Our customers are incredibly resilient themselves. Zimbabwean producers, for example, continue to go to the fields every season despite the economic headwinds. That is where our strength lies—in supporting them with reliable, efficient services that help them navigate their operational challenges. The value that we provide must respond directly to what our customers are facing in real time.
AN: These are boom times for Zimbabwe’s tobacco farming sector. How does that affect your business?
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DO: It is already having a positive impact across our operations. Our systems are designed to support the movement of every kilogramme of tobacco produced in the country, whether under contract or auction. This season, we have seen a significant increase in volumes handled, which speaks to our ability to scale and respond to demand. The more tobacco that is grown, the more work there is for our logistics, packaging, warehousing, and related services.
AN: But long-term, the tobacco sector faces headwinds. How are you future-proofing that segment?
DO: You are right. Climate change, environmental concerns, and global anti-smoking campaigns are realities we cannot ignore. But the industry is already adapting. There are efforts underway to reduce environmental damage, such as switching from wood to coal or renewable energy for curing tobacco and increasing afforestation efforts. We are also engaging closely with the industry to support sustainable practices. As long as there is demand and as long as producers continue to adapt, we will be there to support them efficiently and responsibly.
AN: Let’s talk about capital expenditure (capex). What has TSL budgeted for 2025?
DO: We have earmarked about US$4,5 million in capex for the year. However, we have also reallocated some of what would have been capex towards the Nampak acquisition, which is a strategic investment. Our capex is always targeted. Last year, there was a focus on property development, especially warehousing. This year, the priority has shifted to logistics and agribusiness to align with demand and growth in those areas.
AN: Is this capex being financed internally, or are you tapping external lines?
DO: At this point, it is all being funded internally. We are fortunate to have a strong balance sheet and sufficient internal cash generation to support our strategic investments.
AN: Your logistics arm is vital for supporting agriculture. Have you had any recent investments in that space?
DO: Yes, definitely. We have invested across the board in warehouse capacity, in forklifts, and in new handling equipment. For example, the equipment featured in our final presentation slide (during an analyst briefing) was recently procured to boost efficiency at our logistics hubs. We are continually upgrading our fleet and systems to support smoother movement of agricultural commodities.
AN: Given rising demand for cold storage and processing services, is TSL considering vertical integration?
DO: That depends on how you define vertical integration. We do not aim to control every step of the value chain like some conglomerates might. But we are looking at touchpoints where our customers need more support. For example, if decentralised warehousing helps them access markets faster, we will build it. In that sense, yes, we are deepening our involvement, but only where it makes strategic and commercial sense.
AN: Looking ahead, what is your general outlook for 2025?
DO: It is looking positive. Agriculture, which anchors our business, is expected to perform well next year. Tobacco volumes are at a record high, which will support our operations. We are also growing our footprint in mining-related logistics, where we are seeing increasing demand. Cross-border commodity movement is another promising area we are already supporting through our logistics infrastructure. Meanwhile, our infrastructure portfolio remains steady, contributing consistently. So, putting it all together, we expect 2025 to be a year of consolidation and growth for the group. We are positioning ourselves to serve evolving customer needs across all sectors we operate in.
AN: From a financing standpoint, where does the Nampak acquisition currently stand?
DO: From a financing perspective, we are in a secure position. The main issue that remains is getting shareholder approvals. Regulatory approvals are also in the pipeline. Once these two components are in place, we expect to close the transaction towards the latter part of this year. From our end, the financial resources are ready, and the intent is strong. It is really about completing the formalities to move the deal forward.
AN: What has been signed so far regarding this transaction?
DO: We have a sale and purchase agreement in place. It is the principal binding document. It sets out key terms of the deal and acts as the foundation upon which the transaction is being processed. This agreement is now the basis for what will be presented for shareholder approval. It is a crucial milestone that gives confidence in the seriousness and structure of the acquisition.
AN: What else needs to be done before you can close the deal?
DO: Beyond the sale and purchase agreement, we now need the necessary regulatory approvals from the Competition and Tariff Commission and other relevant authorities. Then, of course, there is the need for shareholder approval on both sides, which is standard in such acquisitions. Once we tick off those boxes, we can proceed with full integration planning.
AN: How exactly does Nampak fit into TSL’s current structure?
DO: If you look at our strategy, we have structured the business into pillars. One of those is packaging, and currently, we have ProPack operating in that space. The acquisition of Nampak would enhance this pillar by introducing a complementary business with a strong footprint in both primary and secondary packaging. Nampak focuses on packaging that supports the agricultural value chain — from the field to the market and from processing to the consumer. That is exactly where we want to grow, so the strategic alignment is strong.
- Concilia Mupezeni contributed to this interview.