Online Reporter
The African Development Bank Group (AfDB) has approved a Zambian Kwacha-denominated risk-sharing credit guarantee to support Zambeef Products Plc US$100 million expansion programme across its core operations in Zambia.
This strategic investment will significantly improve food security in Zambia and the Southern Africa region by doubling production capacity and improving efficiency across Zambeef’s integrated value chains, which span crop production to animal feed, grain processing to flour-based products, and livestock to processed meat.
Zambeef, one of Southern Africa’s largest integrated cold-chain food producers, will use the funding to optimise existing assets and scale operations. The initiative is expected to significantly contribute to
Zambia’s gross domestic product and creates employment and market opportunities.
Zambeef operates 236 retail outlets and contributes approximately 1 percent to Zambia’s gross domestic product. It is a major employer in the country with core activities spanning the entire value chain, from production and processing to distribution and retail, of beef, chicken, pork, dairy, eggs, flour, and animal feed across Zambia and neighbouring countries.
“This intervention for Zambeef reaffirms our solidarity with the Government of Zambia to deepen private sector participation in the agricultural value chain, (particularly in ways) that create jobs for women and youth,” said Raubil Durowoju, AfDB country manager for Zambia.
“This innovative local currency guarantee financing will also enhance stability in the domestic financial market.”
The five-year expansion programme, which began in 2023, is expected to create approximately 1 398 direct jobs and up to 243 000 indirect employment opportunities. It will also empower more than 86 000 local farmers, outgrowers, and small businesses by improving access to both domestic and regional markets.
The project aligns with Zambia’s Eighth National Development Plan (2022-2026), the African Development Bank’s Country Strategy Paper for Zambia (2024-2029), and the Bank’s Ten-Year Strategy (2024-2033), particularly the High-5 priorities of “Feed Africa” and “Industrialise Africa”.
This approval from the AfDB Board represents a critical step forward in the transaction. While this marks progress, additional steps, including final agreements, must be completed before financial close can be achieved.- Herald Reporter
