Latest news with #Agribusiness
Zawya
03-06-2025
- Business
- Zawya
South Africa: Agriculture profitability outlook boosted after a surprise rate cut, the first for 2025
The Sarb's recent surprise decision to cut interest rates by 0.25% effective from 30 May 2025 provides a further boost for the agriculture profitability outlook. This is a welcome reprieve for farmers in terms of reduced debt servicing costs following a drought-induced agriculture contraction, with overall sector performance dropping by 8% year-on-year, with debt uptake already up by 8% year-on-year at R221.82bn. Total agriculture debt increased by 67% in the past ten years, with a compound annual growth rate (CAGR) of 5.8%. Improved margins and investment recovery Not only will the interest rate cut help ease pressure on profit margins, but it will also spur investment recovery in the sector as output rebounds on the back of favourable production conditions. The signals for an agricultural growth upswing include a 15.7% year-on-year increase in the expected 2024/25 summer crop harvest, a rebound in agriculture machinery sales, and the bullishness in the Agribusiness Confidence Index (ACI). The quarterly ACI update for Q1 of 2025 surged by 11 points from Q4 of 2024 to reach the highest level since Q4 of 2021, to 70 points. Agri machinery sales show strong recovery We saw an uptick in agriculture machinery sales total for Q1 of 2025 increasing by a whopping 27% relative to the same period in 2024 at 1,827units, and were up 22% for the year to April 2025 at 2,400 units, according to the South African Agriculture Machinery Association's (SAAMA) update in April 2025.05. Further, the recent cut and more in the offing for later in the year will help lift consumer confidence and boost demand for agricultural commodities in a benign inflation and macroeconomic outlook. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Zawya
22-05-2025
- Business
- Zawya
Financing Agribusiness towards Africa's Food Security: The EU-Africa Chamber of Commerce invites stakeholders to join its Forum on May 24th in Abidjan
The EU-Africa Chamber of Commerce (EUACC) ( invites you to the high-level ' Financing Agribusiness in Africa ' Forum, taking place on Saturday, May 24, 2025, at the Palais des Expositions in Abidjan. This landmark forum brings together decision-makers, investors, development finance institutions, agribusiness leaders, startups, and key technical partners to close the $65 billion financing gap holding back Africa's food potential. ' Transforming Africa's agriculture requires more than ideas — it demands financing, partnerships, and action. This forum turns conversations into commitments and projects into investable opportunities.' says Sonia Toro, Executive Director of the EU-Africa Chamber of Commerce. Forum Highlights Panels: Insightful sessions on financing barriers, structural challenges, and blended finance. Expected speakers include: H.E.M. Beugré Mambé (TBC), Dr. Tchepelayi Kabata (BADEA), Dr. Hermann Messan (IFAD), Mr. Joseph Nyemah (FAO). Pitch Session: high-potential agribusiness projects will pitch to investors and DFIs. Evening B2B Dinner Launch of the EUACC Agri Financing Programme The forum will also kick off the EUACC Agribusiness Programme, a multi-year pipeline to accelerate bankable projects across the continent. The outcome? A Call to Action for COP30 in Brazil, demanding risk-sharing tools and blended finance to drive food sovereignty and resilience. Acknowledgements EUACC sincerely thanks its partners and sponsors: Sponsors: AFG Group, Cadesa Coop Partners: EMPACT, SPECI, CCI-CI, CGECI, FIPME, Côte d'Ivoire Export, BADEA, ARTCI Institutional Support: Ministry of Trade&Industry, Ministry of Women, Family&Children Distributed by APO Group on behalf of EU-Africa Chamber of Commerce (EUACC). Contact&Accreditation: press@ About the EU-Africa Chamber of Commerce (EUACC): The EUACC is a private organisation established in 2012 which plays a key role in connecting businesses, supporting innovation, trade facilitation, and market access. Through this forum, EUACC reaffirms its commitment to unlocking agribusiness potential through sustainable investment in Africa.
Zawya
12-05-2025
- Business
- Zawya
Record rebound in agriculture machinery sales as South Africa's rains boost crop yields
After a unsteady start to the 2024/25 summer crop season with delayed rains despite the La Niña forecasts, production improved significantly as the season progressed. Excellent rains Although excessive and consequently delaying the onset of harvesting in some areas, seasonal rains were excellent since the beginning of the year across the production regions. This, combined with an upswing in the Agribusiness Confidence Index (ACI) helped lift the agriculture machinery sales from the doldrums. The quarterly Agbiz/IDC ACI update showed a sharply increase of 11 points from Q4 of 2024, reaching the highest level since Q4 of 2021 to 70 points in Q1 of 2025 underpinned by the benign interest rate outlook, improved efficiencies at ports, and progress in containment of animal diseases. The latest data from the South African Agriculture Machinery Association (SAAMA) showed a sustained recovery following a massive contraction in 2024 with the monthly sales for April 2025 up by 9% year‑on‑year (y/y) at 573 units comprised of 92% and 8% tractors and combine harvesters respectively. Total agriculture machinery sales for Q1 of 2025 increased by a whopping 27% relative to the same period in 2024 at 1,827units, and were up 22% for the year to April 2025 at 2,400 units. Ramping up harvesting Though delayed by incessant late seasonal rains, farmers will soon ramp up their harvesting of 4.44 million hectares under summer crops, and further intent to plant 827,970 ha under winter crops for 2025. Commodity prices have been excellent this season with maize touching best levels of over R6,800/t and R5,600/t for white and yellow respectively. Similarly, sunflower and soybean prices reached highs of R10,800/t (+20%y/y) and R9,094/t (+12% y/y) respectively this season. Although South Africa's economy remains pedestrian with headwinds from the global economy, the growth outlook is still optimistic including that for agriculture. So far, indications are that we are likely to experience further excellent agriculture conditions for the 2025/26 season as forecasts show probabilities of ENSO‑neutral conditions (El Niño, La Niña, and the Southern Oscillation) towards year end. The combination of the lower interest rate outlook amid low inflation and a stronger rand exchange rate bodes well for machinery sales as most are imported.
Globe and Mail
06-05-2025
- Business
- Globe and Mail
The Andersons, Inc. Reports First Quarter Results
MAUMEE, Ohio , /CNW/ -- The Andersons, Inc. (Nasdaq: ANDE) announces financial results for the first quarter ended March 31, 2025. First Quarter Highlights: "We had mixed results in a turbulent first quarter. The Renewables segment performed well and our ethanol plants had strong operating efficiency and financial results. Coupled with the performance of our ethanol and renewable diesel feedstock merchandising, the segment produced one of its best first quarters. In Agribusiness, we faced challenging markets as global trade uncertainties disrupted typical grain flows and caused many of our commercial customers to focus on just-in-time purchasing. Our agronomy team is off to a good start with product well-positioned for the upcoming planting season," said President and CEO Bill Krueger . "As planting progresses, we see ample second quarter opportunities for our agronomy teams with the expected increase in corn acres this year. Strong system-wide corn and wheat production should provide a good environment for storage and handling in our assets later in the year. We also expect continued demand for our ethanol products, both domestic and export, as we enter the spring maintenance and driving season. We remain pleased with our overall asset and merchandising footprint. With the combination of the former Trade and Nutrient businesses, we are reviewing the portfolio to find synergies and process improvements." "We continue to pursue growth opportunities. Our longer lead time capital projects in Agribusiness are progressing well and are expected to be completed by mid-2026," continued Krueger. "Our Renewables projects are focused on improving efficiency, co-product yields and lowering the carbon intensity of our high-performing ethanol plants." $ in millions, except per share amounts Q1 2025 Q1 2024 Variance Pretax Income $ 3.2 $ 14.0 $ (10.8) Pretax Income (Loss) Attributable to the Company 1 (1.8) 6.9 (8.7) Adjusted Pretax Income (Loss) Attributable to the Company 1 3.2 6.6 (3.4) Agribusiness 1 (0.1) 5.4 (5.5) Renewables 1 15.3 14.1 1.2 Other (12.0) (12.9) 0.9 Net Income Attributable to the Company 0.3 5.6 (5.3) Adjusted Net Income Attributable to the Company 1 4.1 5.6 (1.5) Diluted Earnings Per Share ("EPS") 0.01 0.16 (0.15) Adjusted EPS 1 0.12 0.16 (0.04) EBITDA 1 50.6 51.4 (0.8) Adjusted EBITDA 1 $ 57.3 $ 51.2 $ 6.1 1 Non-GAAP financial measures; see appendix for explanations and reconciliations. Cash, Liquidity, and Long-Term Debt Management "Our businesses continue to generate strong cash flows, although working capital needs in the first quarter typically require significant funding leading to a use of cash from operations. However, our debt remains at a modest level," said Executive Vice President and CFO Brian Valentine . "We remain well below our long-term debt to EBITDA target of less than 2.5 times and are pleased with the strength of our balance sheet. For 2025, we anticipate increased spending on growth projects for previously announced long-term opportunities." The company used cash from operating activities of $350 million and $240 million in the first quarter of 2025 and 2024, respectively. Cash from operations before working capital changes in the same periods was $57 million and $48 million , respectively. Cash spent on capital projects in the quarter totaled $47 million , a $20 million increase from 2024. First Quarter Segment Overview Agribusiness Challenged in Changing Markets Agribusiness recorded a pretax loss of $10 million and breakeven adjusted pretax income attributable to the company for the quarter compared to pretax income of $3 million and adjusted pretax income of $5 million in the first quarter of 2024. Results from our ag supply chain businesses were lower with limited trade flows due to market uncertainty. Assets were significantly impacted as basis levels were challenged in our western locations, including those recently acquired as part of the Skyland Grain, LLC investment. The nutrient business showed year-over-year improvement with good fertilizer volume and positioning in advance of an expected increase in corn acres. The portfolio mix of assets, ingredients, and merchandising businesses provides a solid foundation to navigate challenging market conditions. Sizeable corn planting intentions are favorable, allowing for higher nutrient volumes as well as providing opportunities for storage and handling at harvest. In addition, lower corn stocks entering the year should allow for merchandising opportunities and good early harvest margins in the last half of 2025. Agribusiness's first quarter adjusted EBITDA was $31 million , compared to $29 million in 2024. Renewables has Strong Quarter on Efficient Operations and Favorable Ethanol Margins The Renewables segment reported pretax income of $25 million and pretax income attributable to the company of $15 million in the first quarter. For the same period in 2024, the segment reported pretax income of $24 million and adjusted pretax income attributable to the company of $14 million . Results from the ethanol production facilities improved year-over-year on efficient operations and higher yields, also benefiting from better year-over-year board crush margins. Plant co-product values were lower, with corn-based feed ingredients competing against an oversupply of alternative protein sources. Ethanol demand is expected to strengthen into the summer with some concerns about cost of inputs. Values of feed ingredient co-products are expected to remain challenged. Renewables had first quarter EBITDA of $37 million in 2025, compared to adjusted EBITDA of $34 million in 2024. Income Taxes The company recorded an income tax benefit for the quarter of $2.1 million , resulting in an effective rate of (66)% for the period. This rate was impacted by a discrete adjustment for a decrease in unrecognized tax benefits related to prior period tax positions. We anticipate a full-year adjusted effective rate of approximately 18% - 22%. Conference Call The company will host a webcast on Wednesday, May 7, 2025 , at 8:30 a.m. ET , to discuss its performance and provide its outlook for the remainder of 2025. To access the call, please dial 888-317-6003 or 412-317-6061 (elite entry number is 2480571). It is recommended that you call 10 minutes before the conference call begins. To access the webcast, click on the link: and submit the requested information as directed. A replay of the call can also be accessed under the heading "Investors" on the company's website at Forward-Looking Statements This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, geopolitical risk, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. Although the company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Non-GAAP Measures This release contains non-GAAP financial measures. The company believes that pretax income (loss) attributable to the company; adjusted pretax income (loss) attributable to the company; adjusted pretax income (loss); adjusted net income attributable to the company; adjusted diluted earnings per share; earnings before interest, taxes, depreciation, and amortization (or EBITDA); adjusted EBITDA; and cash from operations before working capital changes provide additional information to investors and others about its operations, allowing an evaluation of underlying operating performance and liquidity and better period-to-period comparability. The above measures are not and should not be considered as alternatives to pretax income (loss) or income (loss) before income taxes, net income (loss), diluted earnings (loss) per share attributable to The Andersons, Inc. common shareholders and cash provided by (used in) operating activities as determined by generally accepted accounting principles. Reconciliations of the GAAP to non-GAAP measures may be found within this press release and the financial tables provided herein. Company Description The Andersons, Inc., is a diversified company rooted in agriculture that conducts business in the agribusiness and renewables sectors. Guided by its Statement of Principles, The Andersons is committed to providing extraordinary service to its customers, helping its employees improve, supporting its communities, and increasing the value of the company. For more information, please visit The Andersons, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) March 31, 2025 December 31, 2024 March 31, 2024 Assets Current assets: Cash and cash equivalents $ 219,219 $ 561,771 $ 283,902 Accounts receivable, net 812,482 764,550 701,706 Inventories 1,249,047 1,286,811 994,543 Commodity derivative assets – current 155,028 148,801 178,623 Other current assets 92,968 88,344 55,134 Total current assets 2,528,744 2,850,277 2,213,908 Property, plant and equipment, net 860,246 868,151 689,113 Other assets, net 408,692 402,886 358,052 Total assets $ 3,797,682 $ 4,121,314 $ 3,261,073 Liabilities and equity Current liabilities: Short-term debt $ 222,691 $ 166,614 $ 10,148 Trade and other payables 661,202 1,047,436 625,836 Customer prepayments and deferred revenue 223,702 194,025 174,651 Commodity derivative liabilities – current 69,648 59,766 67,079 Current maturities of long-term debt 62,675 36,139 27,617 Accrued expenses and other current liabilities 194,390 227,192 177,953 Total current liabilities 1,434,308 1,731,172 1,083,284 Long-term debt, less current maturities 588,087 608,151 556,174 Other long-term liabilities 180,853 182,155 145,965 Total liabilities 2,203,248 2,521,478 1,785,423 Total equity 1,594,434 1,599,836 1,475,650 Total liabilities and equity $ 3,797,682 $ 4,121,314 $ 3,261,073 The Andersons, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) Three months ended March 31, (in thousands) 2025 2024 Operating Activities Net income $ 5,331 $ 12,665 Adjustments to reconcile net income to cash used in operating activities: Depreciation and amortization 34,340 30,949 Other 17,303 4,795 Changes in operating assets and liabilities: Accounts receivable (53,268) 57,725 Inventories 38,531 169,083 Commodity derivatives 1,076 (28,498) Other current and non-current assets (8,558) 1,923 Payables and other current and non-current liabilities (384,775) (488,269) Net cash used in operating activities (350,020) (239,627) Investing Activities Purchases of property, plant and equipment and capitalized software (46,548) (26,775) Other 2,717 4,723 Net cash used in investing activities (43,831) (22,052) Financing Activities Net proceeds (payments) under short-term lines of credit 56,044 (31,913) Proceeds from issuance of long-term debt 14,700 — Payments of long-term debt (8,416) (6,870) Dividends paid (6,693) (6,516) Value of shares withheld for taxes (3,837) (8,071) Distributions to noncontrolling interest owner — (44,910) Other (1,353) — Net cash provided by (used in) financing activities 50,445 (98,280) Effect of exchange rates on cash and cash equivalents 854 7 Decrease in cash and cash equivalents (342,552) (359,952) Cash and cash equivalents at beginning of period 561,771 643,854 Cash and cash equivalents at end of period $ 219,219 $ 283,902 The Andersons, Inc. Adjusted Net Income Attributable to The Andersons, Inc. A non-GAAP financial measure (unaudited) Three months ended March 31, (in thousands, except per share data) 2025 2024 Net income $ 5,331 $ 12,665 Net income attributable to noncontrolling interests 5,047 7,084 Net income attributable to The Andersons, Inc. 284 5,581 Adjustments: Transaction related compensation 2,103 2,852 Insured inventory and property damage 2,926 — Gain on deconsolidation of joint venture — (3,117) Income tax impact of adjustments 1 (1,257) 279 Total adjusting items, net of tax 3,772 14 Adjusted net income attributable to The Andersons, Inc. $ 4,056 $ 5,595 Diluted earnings per share attributable to The Andersons, Inc. common shareholders $ 0.01 $ 0.16 Impact on diluted earnings per share $ 0.11 $ — Adjusted diluted earnings per share $ 0.12 $ 0.16 1 The income tax impact of adjustments is taken at the blended federal, state, and local tax rate of 25% with the exception of certain transaction related compensation in 2024. Adjusted net income (loss) attributable to The Andersons, Inc. reflects reported net income (loss) available to The Andersons, Inc. common shareholders after the removal of specified items described above. Adjusted diluted earnings (loss) per share reflects the fully diluted EPS of The Andersons, Inc. after removal of the effect on EPS as reported of specified items described above. Management believes that Adjusted net income (loss) attributable to The Andersons, Inc. and Adjusted diluted earnings (loss) per share are useful measures of The Andersons, Inc. performance as they provide investors additional information about the operations of the company allowing better evaluation of underlying business performance and better comparability to previous periods. These non-GAAP financial measures are not intended to replace or be alternatives to Net income attributable to The Andersons, Inc. and Diluted earnings per share attributable to The Andersons, Inc. common shareholders as reported, the most directly comparable GAAP financial measures, or any other measures of operating results under GAAP. Earnings amounts described above have been divided by the company's average number of diluted shares outstanding for each respective period in order to arrive at an adjusted diluted earnings (loss) per share amount for each specified item. The Andersons, Inc. Segment Data (unaudited) (in thousands) Agribusiness Renewables Other Total Three months ended March 31, 2025 Sales and merchandising revenues $ 1,993,287 $ 665,811 $ — $ 2,659,098 Gross profit 118,598 34,274 — 152,872 Operating, administrative and general expenses 124,489 9,783 11,482 145,754 Other income (loss), net 9,041 1,088 (938) 9,191 Income (loss) before income taxes (9,676) 24,881 (11,992) 3,213 Income (loss) attributable to noncontrolling interests (4,522) 9,569 — 5,047 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ (5,154) $ 15,312 $ (11,992) $ (1,834) Adjustments to income (loss) before income taxes 2 5,029 — — 5,029 Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ (125) $ 15,312 $ (11,992) $ 3,195 Three months ended March 31, 2024 Sales and merchandising revenues $ 2,061,439 $ 656,778 $ — $ 2,718,217 Gross profit 99,519 28,801 — 128,320 Operating, administrative and general expenses 96,921 8,777 13,660 119,358 Other income, net 6,571 4,760 197 11,528 Income (loss) before income taxes 2,538 24,327 (12,897) 13,968 Income attributable to noncontrolling interests — 7,084 — 7,084 Income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 2,538 $ 17,243 $ (12,897) $ 6,884 Adjustments to income (loss) before income taxes 2 2,852 (3,117) — (265) Adjusted income (loss) before income taxes attributable to The Andersons, Inc. 1 $ 5,390 $ 14,126 $ (12,897) $ 6,619 1 Income (loss) before income taxes attributable to The Andersons, Inc. for each operating segment is defined as net sales and merchandising revenues plus identifiable other income less all identifiable operating expenses, including interest expense for carrying working capital and long-term assets and is reported net of the noncontrolling interest share of income. 2 Additional information on the individual adjustments that are included in the adjustments to income (loss) before income taxes can be found in the Reconciliation to EBITDA and Adjusted EBITDA table. All adjustments are consistent with the EBITDA reconciliation with the exception of items where a portion of the expense is attributable to the noncontrolling interest and is represented in Income attributable to the noncontrolling interest within the reconciliation above. These adjustments include a $1.6 million difference in insured inventory and property damages in the Agribusiness segment for the three months ended March 31, 2025. The Andersons, Inc. A non-GAAP financial measure (unaudited) (in thousands) Agribusiness Renewables Other Total Three months ended March 31, 2025 Net income (loss) $ (9,676) $ 24,881 $ (9,874) $ 5,331 Interest expense (income) 12,826 698 (428) 13,096 Tax provision (benefit) — — (2,118) (2,118) Depreciation and amortization 21,685 11,891 764 34,340 EBITDA 24,835 37,470 (11,656) 50,649 Adjusting items impacting EBITDA: Transaction related compensation 2,103 — — 2,103 Insured inventory and property damage 4,502 — — 4,502 Total adjusting items 6,605 — — 6,605 Adjusted EBITDA $ 31,440 $ 37,470 $ (11,656) $ 57,254 Three months ended March 31, 2024 Net income (loss) $ 2,538 $ 24,327 $ (14,200) $ 12,665 Interest expense (income) 6,631 457 (566) 6,522 Tax provision — — 1,303 1,303 Depreciation and amortization 17,048 11,965 1,936 30,949 EBITDA 26,217 36,749 (11,527) 51,439 Adjusting items impacting EBITDA: Transaction related compensation 2,852 — — 2,852 Gain on deconsolidation of joint venture — (3,117) — (3,117) Total adjusting items 2,852 (3,117) — (265) Adjusted EBITDA $ 29,069 $ 33,632 $ (11,527) $ 51,174 Adjusted EBITDA is defined as earnings before interest, taxes and depreciation and amortization, adjusted for specified items. The company calculates adjusted EBITDA by removing the impact of specified items and adding back the amounts of interest expense, tax expense and depreciation and amortization to net income (loss). Management believes that adjusted EBITDA is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Adjusted EBITDA is a non-GAAP financial measure and is not intended to replace or be an alternative to net income (loss), the most directly comparable GAAP financial measure. Three Months Ended, Twelve months ended March 31, 2025 (in thousands) June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 Net income $ 52,470 $ 51,461 $ 54,104 $ 5,331 $ 163,366 Interest expense 6,611 8,361 10,266 13,096 38,334 Tax provision (benefit) 4,876 10,731 13,146 (2,118) 26,635 Depreciation and amortization 30,269 30,408 36,178 34,340 131,195 EBITDA 94,226 100,961 113,694 50,649 359,530 Adjusting items impacting EBITDA: Transaction related compensation 4,049 1,668 2,536 2,103 10,356 Insured inventory and property damage (recoveries) — (5,204) (4,446) 4,502 (5,148) Acquisition costs — — 3,193 — 3,193 Loss on cost method investment — — 1,535 — 1,535 Total adjusting items 4,049 (3,536) 2,818 6,605 9,936 Adjusted EBITDA $ 98,275 $ 97,425 $ 116,512 $ 57,254 $ 369,466 Three Months Ended, Twelve months ended March 31, 2024 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net income $ 82,686 $ 30,523 $ 78,437 $ 12,665 $ 204,311 Interest expense 13,953 8,188 8,101 6,522 36,764 Tax provision 21,732 7,862 13,324 1,303 44,221 Depreciation and amortization 30,365 31,215 31,306 30,949 123,835 EBITDA 148,736 77,788 131,168 51,439 409,131 Adjusting items impacting EBITDA: Transaction related compensation 939 1,999 3,212 2,852 9,002 Gain on deconsolidation of joint venture (6,544) — — (3,117) (9,661) Goodwill impairment — — 686 — 686 Gain on sale of assets — (5,643) — — (5,643) Gain on cost method investment — (4,798) — — (4,798) Impairment on equity method investments — 963 — — 963 Insured inventory expenses 1,310 — — — 1,310 Total adjusting items (4,295) (7,479) 3,898 (265) (8,141) Adjusted EBITDA $ 144,441 $ 70,309 $ 135,066 $ 51,174 $ 400,990 Cash from operations before working capital changes is defined as cash provided by (used in) operating activities before the impact of changes in working capital within the statement of cash flows. The Company calculates cash from operations by eliminating the effect of changes in accounts receivable, inventories, commodity derivatives, other assets, and payables and accrued expenses from the cash provided by (used in) operating activities. Management believes that cash from operations before working capital changes is a useful measure of the company's performance as it provides investors additional information about the company's operations allowing better evaluation of underlying business performance and improved comparability to prior periods. Cash from operations before working capital changes is a non-GAAP financial measure and is not intended to replace or be an alternative to cash provided by (used in) operating activities, the most directly comparable GAAP financial measure.
Yahoo
28-04-2025
- Business
- Yahoo
Ghana to engage Private Sector to establish three garment factories
The establishment of these plants is a component of Ghana President John Dramani Mahama's broader plan aimed at accelerating industrial growth and expanding employment opportunities, reported Ghana News Agency. The announcement was made by Trade, Agribusiness, and Industry Minister Elizabeth Ofosu-Adjare during her address at the Kwahu Business Forum's second edition in Mpraeso, located in the Eastern Region's Kwahu South District. The ministry is focused on fostering strategic enhancements in value chains to rejuvenate underperforming sectors and boost production capacities for domestic and international markets. The initiative involving the garment factories in Ghana is anticipated to be a pivotal factor in the transformation of the nation's economic landscape and in generating enduring employment prospects. President Mahama was quoted by Ghanaian Times as saying: 'We are prioritising sectors that can absorb labour and grow our economy sustainably— agro-processing, ICT, manufacturing, tourism, renewable energy, and the green economy. But our focus is not only on attracting foreign investment. We are equally committed to empowering Ghanaians to become owners and drivers of enterprise.' The planned facilities are envisioned as part of the 24-hour Economy Policy. Although detailed information about the factories has not been released, it is anticipated that each of the garment manufacturing units will have the capacity to provide employment for 3,000 workers per shift. This development is expected to result in a cumulative creation of 27,000 job opportunities within the nation. Additionally, Ofosu-Adjare is set to spearhead a delegation comprising prominent figures from the private sector on a trip to China. The purpose of this visit is to conduct focused business-to-business (B2B) engagements. The Kwahu Business Forum, spanning two days and themed "The Future of Business: The Role of the Financial Sector," represents a significant governmental effort to promote entrepreneurship and bolster small and medium enterprises (SMEs) in Ghana. A key legislative goal for the year includes passing the Business Regulatory Reform Commission Bill. This bill aims to institutionalise reform processes, bridge gaps between public and private sector interests, and implement regulatory impact assessments. In 2023, World Shoe Social Enterprise, a Ghanaian social enterprise affiliated with World Shoe, inaugurated its first factory in Ghana, which is capable of producing more than 5 million shoes that prioritise performance, environmental sustainability, and disease prevention. Northshore Apparel has indicated on its LinkedIn page that it is currently working on an apparel production plant covering 22,000m2 in Savelugu, northern Ghana, with operational commencement targeted for March. The establishment is projected to generate more than 10,000 direct job opportunities. "Ghana to engage Private Sector to establish three garment factories" was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
