Zeder CEO on post COVID-19 investment opportunities

Zeder, a South African agribusiness company, recently made headlines after disposing of its investment in Pioneer Foods to PepsiCo, receiving a substantial amount of R6.4 billion in return. The CEO of Zeder, Norman Celliers, spoke to CNBC Africa about the company's plans for the cash windfall and its positioning in the midst of the COVID-19 pandemic. Celliers mentioned that the timing of the transaction with PepsiCo could not have been better, allowing the company to settle all its debt, reward shareholders with a special dividend, and strengthen its balance sheets. With the uncertainty surrounding the impact of COVID-19 on businesses, Celliers emphasized the importance of having a conservative approach and being prepared to navigate through the economic challenges ahead. However, he also expressed optimism about potential investment opportunities that may arise during these unprecedented times. Zeder is considering supporting its existing portfolio companies while also exploring new acquisitions or partnerships, particularly in South Africa and Sub-Saharan Africa, where the company believes it has a competitive advantage. Despite the current difficulties in predicting the short-term economic outlook, Zeder remains confident in the long-term recovery and growth prospects. The company's focus on resilient balance sheets and ample cash reserves position them well to weather the storm and capitalize on future opportunities.