2014 The Year of Agriculture and Food Security

Agribusiness Opportunities In Zambia

By Mishinga Seyuba-KomboActing Chair, Agribusiness PCCape Chamber of Commerce

Agribusiness and Interantional Trade and Tourism Portfolio Committees MeetingTable of Contents

1. General Overview of Zambia’s Agricultural Platform2. Key Investment Opportunity Areas

1. Food Processing2. Floriculture3. Horticulture4. Aquaculture5. Livestock6. Crop Diversification 7. Fertilizers 8. Farm Equipment & Irrigation Systems

3. Getting Started – How to Guides4. Contact Us

Zambia - The warm heart of Africa -

• Impact & Development – Strategically located near other booming countries/ economies such as Tanzania, Angola,

Mozambique and the Democratic Republic of Congo

– Zambia a member of SADC & COMESA – easy access to growing consumer markets. SADC alone has a combined population of 580 million people with a combined GDP per capita of $870 million including Zambia.

• Total Arable Land area is 75 million hectares (752, 000km2)

• 58% (42million hectares) of which is classified as medium to high potential for agricultural production with rainfall ranging between 800mm to 1,400 mm annually.

• Currently only 15% of this land is being cultivated.

• Land suitable for a broad range of production of crops, fish and livestock.

• Tax Incentives – zero corporate tax for the initial 5 years from the first year profits that are made in the agriculture

sector.

Duty Free Access To Wider Markets SADC & COMESA

AGRO- PROCESSING• Peanut butter production

• Cashew nut processing

• Animal or Stock feed production (soya beans)

• Cassava Processing (food and other industrial products)

• Cashew nut Processing

• Grain Milling (Rice, Maize, Wheat etc.)

• Edible oil Production

• Fruit Canning and Juice Extraction

• Meat, dairy, leather and leather products

• Fish canning and fish meal production

• Cotton Spinning and Textiles

• Bio-diesel production and ethanol production

• Honey processing

• Coffee & tea processed & packaged

• Tobacco

FLORICULTURAL

• One of the fastest growing export industries in Zambia.

• It is usually associated with cut flowers and summer flowers. The cut flowers comprise mainly fresh roses that account for 95% of the sector while the remaining 5% are summer flowers.

• Introduce more varieties to the industry.

• Availability: there is usually a shortage locally.

HORTICULTURAL• Asparagus• Sugar snap peas• Green beans (bobby beans) • Baby corn, • Broccoli• Cauliflower • Passion fruit• Spring onions• Pattypan squash• Eggplant• Mushrooms • Cucumbers• Carrots• Leeks • Various types of chilies & peppers.

• All of these are in limited supply.

• Big Zambian retailers such as Pick n Pay, Spar & Shoprite rely on imports from South Africa for most of these products.

• Opportunity to produce high quality fresh vegetables.

• Packaging & Labeling materials

AQUACULTURE

• Zambia has 15m hectares of water.

• Demand for domestic fish consumption still outweighs production.

Key Investment Areas• Cold Storage & Fish

Haulage.

• Education & Training in fisheries.

• Fish Ornaments The rare and beautiful fish which are less than 20 centimeters long can be bread and kept in aquariums for sale.

LIVESTOCK

• Poultry (meat)- Free Range Birds- Turkey- Duck

• Egg Production• Pigs (Pork)• Goats• Sheep • “Tired Breeds”

• Cattle (Beef + leather)• Opportunities for

investing in tanneries for value addition to raw hides and skins to wet blue and finished leather.

• Dairy Cattle• Animal nutrition (feed)

CROP DIVERSIFICATION

• Table grapes• Citrus fruits (oranges & lemons)• Sweet & Irish Potatoes• Cassava • Sorghum• Finger millet• Sunflower • Oyster Mushrooms

FARM EQUIPMENT & IRRIGATION SYSTEMS

• Irrigation Systems• Tractors• Planters • Cultivating Equipment• Spraying Equipment• Spreaders • Harvesters

FERTILISERS • Zambia depends largely on the international markets for

its fertilizers, as local production is very limited and dependent on a state-run plant (Nitrogen Chemicals of Zambia [NCZ]) that is in need of major repairs/upgrades.

• Investment opportunity is to set up a manufacturing plant which will improve accessibility and productivity, while saving on foreign exchange and avoiding international price fluctuations.

LEGAL COMPLIANCE AND REGULATORY FRAMEWORK

1. Registering your company – PACRA (Patents and Companies Registration Agency (PACRA)

2. Registering for Tax and VAT – The Zambia Development Agency (ZDA)

3. Import & Export Licenses4. Immigration – Visas and Permits

Contact Us For More Information

SK Associates – “Building Partnerships in Africa”1st Floor Mariendal House,

Newlands on MainMain Road, Claremont, Cape Town, 7700

E-mail: mishinga@skassociates.co.zaTel: + 27 216714425

Web: http://www.skassociates.co.za