Lusaka, Zambia, July 18, 2022—IFC and Zambeef Products PLC, one of the region's leading agribusiness companies, are joining forces to boost food security and strengthen Zambia's agricultural sector to create jobs and help fight poverty.
IFC will invest up to $35 million in Zambeef to support the company's three-year plan to expand its food production and processing capacities, and enable it to source more key inputs, such as wheat, dairy, and animal feed ingredients, from local suppliers. Zambeef will use the funds to upgrade its feed mill, develop more animal housing, purchase new farm equipment and develop 1,000 hectares of irrigation land, among others.
The project is expected to improve Zambeef's value chain, which will result in the creation of almost 1,400 new jobs, expand the tax revenue and support small-scale farmers and small and medium-sized businesses. It will also increase access to high-quality and affordable protein foods.
"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. This latest support from IFC is part of our $100 million investment strategy to expand that even further," said Faith Mukutu, Chief Executive Officer, Zambeef Products PLC.
The agricultural sector plays an important role in Zambia's economy, contributing almost half of all employment. However, agriculture, forestry and fishing contribute only 3 percent of GDP. This presents an opportunity to significantly expand the sector's contribution to economic growth in Zambia.
"Agribusiness is a key driver of economic growth and essential to ensure food security," said Carlos Katsuya, IFC's Senior Country Manager for Zambia. "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."
The investment will contribute to climate mitigation by supporting efforts to improve Zambeef's energy and fuel efficiency and reduce more than 14,000 metric tons of greenhouse gas emissions every year. IFC will also provide advisory services to help Zambeef set up a comprehensive carbon assessment planning system, which will accelerate longer-term climate-smart initiatives to combat climate change.
The project will enable Zambeef to introduce a new health and biosecurity management system across its animal production chain. This will facilitate easier trade and allow for the safe transfer of live animals and products to prevent entry of diseases that could be circulating in domestic or regional markets.
IFC's investment in Zambeef includes support from the International Development Association's Private Sector Window (IDA-PSW) Local Currency Facility. The project aligns with IFC's strategic approach to agribusiness, which focuses on enhancing food security, boosting inclusive growth and shared prosperity, and making sustainability a business driver.
Zambeef Products PLC ("Zambeef") is the largest integrated cold chain food products and agribusiness company in Zambia and one of the largest in the Southern Africa region. Zambeef is quoted on both the Lusaka Securities Exchange and the AIM market of the London Stock Exchange. It is involved in the primary production, processing, distribution and retailing of beef, chicken, pork, eggs, dairy, fish, flour, stockfeed and day-old chicks throughout Zambia and the surrounding region. It operates 236 retail outlets in Zambia, Nigeria and Ghana. Zambeef also has one of the largest row cropping operations in Zambia, growing maize, soybeans and wheat. Zambeef plants nearly 23,000 hectares annually, with most of the resulting crops being used in the Zambeef animal feed and flour milling businesses. Zambeef employs more than 7,000 people. More information is available at www.zambeefplc.com
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
About the IDA Private Sector Window
As part of the 19th replenishment of the International Development Association (IDA), the World Bank Group is continuing the IDA Private Sector Window (PSW) created under IDA18 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw