July 25, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Agriculture is key to Zambia’s people, accounting for nearly half of all employment in the country. However, agriculture, forestry, and fishing account for only 3 percent of the country’s GDP, reflecting the significant potential there is for investment to drive growth for agriculture and its contribution to the country’s economy. 

The International Finance Corporation (IFC) is stepping forward to commit up to $35 million to Zambeef Products PLC, one of the region’s leading agribusiness companies, to partner on boosting food security and strengthen Zambia’s agricultural sector to fight poverty. 

This investment includes support from the International Development Association’s Private Sector Window (IDA-PSW) Local Currency Facility, and aligns with IFC’s strategic approach to agribusiness – the enhancement of food security, boosting inclusive growth and shared prosperity, and positioning sustainability as a business driver.

The capital secured through this partnership will be used by the company to help fund its three-year plan to expand its production and processing capabilities; to enable it to source more critical inputs such as wheat, diary, and animal feed ingredients from local suppliers; to upgrade its feed mill, develop more animal housing, purchase new farm equipment; and to develop 1,000 hectares (2,471 acres) of irrigated land, among other projects.

“Agribusiness is a key driver of economic growth and essential to ensure food security,” said Carlos Katsuya, senior country manager for Zambia, IFC. 

“IFC’s investment in Zambeef will continue to help develop and diversify this key sector, create thousands of jobs and provide quality, affordable food to Zambian consumers, while also expanding access to best practices and finance for the sector in the region.”

Listed on both the Lusaka Securities Exchange and the AIM market of the London Stock Exchange, Zambeef is the largest integrated cold chain food products and agribusiness company in Zambia, and one of the largest in all of Southern Africa. 

The company controls one of the largest row cropping operations in the country, planting and harvesting nearly 23,000 hectares (56,834 acres) of maize, soybeans, and wheat annually, with most of the resulting crops being used by the Zambeef animal feed and four million businesses.

It also is involved in the primary production, processing, distribution, and retail of beef, chicken, pork, eggs, dairy, fish, flour, day-old chicken, and stockfeed throughout Zambia and the surrounding region through its 236 retail outlets in Zambia, Nigeria, and Ghana. 

This three-year project is expected to improve the company’s value chain while creating nearly 1,400 new jobs. It also will support small-scale farmers and SMEs, while increasing access to high-quality and affordable protein foods for consumers.

“Throughout its history Zambeef has grown with the Zambian people, providing jobs, livelihoods and world-class shopping for our customers by adding value to local produce,” said Faith Mukutu, CEO, Zambeef Products PLC.

“This latest support from IFC is part of our $100 million investment strategy to expand that even further.”

This investment also will contribute to climate change mitigation by funding efforts by Zambeef to improve its energy and fuel efficiency and reduce more than 14,000 metric tons of greenhouse gas emissions each year.

As part of this partnership, IFC also will provide advisory services to assist Zambeef in establishing a comprehensive carbon assessment planning system that will accelerate longer-term climate-smart initiatives. 

Likewise, this capital will enable Zambeef to introduce a new health and biosecurity management system across its animal protein production chain that will ease trade and allow for the safe transfer of live animals and products to prevent entry of diseases that may be circulating in domestic and regional markets.

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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