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Innscor Africa Limited has moved into agriculture, securing a 27 percent stake in Tanganda Tea Company Limited after underwriting an $8 million rights offer through its subsidiary, Rutanhi Beverages Limited.
Chinake, who chairs Innscor, framed the deal as both strategic and timely, saying the group sees clear upside in strengthening Tanganda's balance sheet while unlocking long-term value across Zimbabwe's agriculture sector.
Tanganda, which produces tea, coffee, avocados, macadamia nuts and bottled water, sought fresh capital to stabilize operations after sustained cash flow pressure dating to the Covid-19 period. The company reported a cash deficit of about $6.36 million, raising concerns about its ability to meet obligations and sustain production.
The capital raise was structured as a renounceable rights offer of 263,821,324 new shares at $0.0303 each, allowing existing shareholders to subscribe proportionally. Innscor's underwriting ensured the offer succeeded, with the group absorbing any shortfall and emerging as a significant shareholder.
Proceeds are earmarked for working capital, including procurement of packaging materials and key inputs, as well as settling obligations to suppliers of fertilizers, chemicals and fuel. Tanganda also plans capital upgrades, including replacing its water bottling plant and refurbishing infrastructure at Tingamira Estate. Additional funds will support solar integration across three estates.
The move aligns with Innscor's broader investment strategy. Over the past five years, the group has committed more than $127 million to expanding manufacturing capacity, automation and infrastructure, with new bakery lines, snack and biscuit plants and renewable energy installations reshaping its production base.
Performance across Innscor's operating units has been mixed. Prodairy posted a 7 percent volume increase, supported by demand for its Revive range. Buffalo Brewing Company operated at full capacity, with volumes rising 17 percent on strong consumer uptake and expanded distribution. Bottling volumes declined 17 percent as the group pivoted away from low-margin products and absorbed the impact of sugar taxes. Packaging unit Natpak recorded uneven results, with growth in flexible packaging offset by weaker demand in rigid formats tied to the beverage sector.
Chinake said ongoing optimization efforts remain focused on cost discipline and route-to-market efficiency. The Tanganda investment, he added, complements those efforts by extending Innscor's integrated model into primary agriculture while preserving a legacy brand.
