11/08/2024
ALEXANDER NKOSI EXPLAINS GRZ (ZCS/ZNS) ZAMBEEF CHIAWA FARM INVESTMENT
By Alexander Nkosi
1. GOVERNMENT DIRECT INVESTMENT IN AGRICULTURE
Drawing lessons from South East Asian countries whose Governments actively participated in running some key industries, the Zambian Government has been directly involved in agriculture production through the Industrial Development Corporation (IDC), Zambia National Service (ZNS) and Zambia Correctional Services (ZCS). The Patriotic Front led Government invested in/ revived Mununshi Banana Plantation, Kawambwa Tea Company, Kalene Fruit Factory, Eastern Fruit Company, and went as far as investing $16 million in acquiring 90% stake in Zambeef Products' subsidiary Zampalm Limited in Mpika.
The New Dawn Government continued with these agriculture sector investments through expansion of agriculture projects under ZNS and ZCS. In 2022, ZCS acquired 700 hectares Mwomboshi farm. Other key investments by ZCS include: Nansanga farm in Serenje, Lubambala farm in Mpika, Chitwi farm in Luanshya, Chondwe farm in Ndola, Mukuyu farm in Kabwe and Mwembeshi farm in Chilanga. All these farms have a combined total of 39 centre pivots for irrigation. The acquisition of the Chiawa Zambeef farm has taken the total number of centre pivots to 72, with potential to add 17 more. This will greatly increase irrigated farmland and winter cropping and contribute to building national resilience to impacts of climate change. Note that ZCS is also exploring acquiring 2000 hectares Green farm in Luapula Province.
2. ABOUT THE CHIAWA FARM
This is an 8,658 hectares (21,394 acres) commercial and wildlife farm on the Zambezi river within the Chaiwa Game Management Area which borders the Lower Zambezi National Park. It was acquired by Zambeef in 2008 at a total cost of $6 million. By 2009, Zambeef invested a total of $16 million in expanding the farm, setting up irrigation infrastructure, storage facilities, offices, housing and buying agriculture equipment. It currently has a total of 33 centre pivots covering 2,158 hectares (5,332 acres) of irrigated farmland, double cropped with soya and winter wheat/ winter maize. Water rights from the Kafue and Zambezi rivers offer scope to expand the cropping area by adding 17 more centre pivots to take it to 50.
It is fully equipped with the latest machinery, in very good working condition. It has extensive housing and farm buildings including modern 10,000 metric tonnes grain storage and drier complex, workshops, weighbridge, machinery sheds, offices, staff housing, management housing, fish ponds, irrigation equipment and underground irrigation pipe lines. It also has good internal gravel roads and security fencing throughout.
In addition the farm has a large tract of 2,737 hectares (6,763 acres) natural bush land with a game corridor. This is an added bonus to the farm as it has huge potential for captive game breeding and residential/time share use, with easy and close access to both the Kafue river and the Zambezi river. The animals in the corridor are Elephants, Buffalos, Leopards, Kudus, Bushbucks, Duikers, Impalas, Bush pigs, Genets, Civits, Cervals, Baboons, Vervet Monkeys, Porcupines and Badgers. There are several water holes for the animals and in the dry season these water holes are kept full and there is a stream on the western edge in the corridor. Hence, the farm also has huge tourism potential. Lastly the farm has a
private airstrip and is only 115 km from Lusaka by road.
3. ZAMBEEF INVESTMENTS
Zambeef embarked on a $100 million expansion programme of its Mpongwe Farm that includes setting up modern infrastructure. It was operationally expensive to have huge entreprises spread across the country, hence the decision to sell off some assets and expand its investment in Mpongwe. Some of the assets it has sold include: 90% stake in 20,238 hectares (3,864 hectares is under oil palm cultivation) Zampalm Ltd sold to the Zambian Government (IDC) at $16 million in 2018, a 2550 hectares Sinazongwe farm sold to Chenguang Biotech at $10 million in 2020 and now the an 8,658 hectares Chiawa farm sold to the Zambia Government at $13.5 million in 2024.
4. CONCLUSION
Iam a strong proponent of Government direct involvement in agriculture production through Zambia National Service and Zambia Correctional Services. These two have huge potential to significantly contribute to agriculture development with the right investment and business operational structure. A lot of operational costs under ZNS and ZCS are already covered by Government making them better placed to produce at a low costs and compete with giants in the region. All we need to do is to sub-contract a private firm to run the production and business management aspects of these investments to improve their commercial viability and ensure profitability.
Thank you.
