The African Development Bank Group has approved a Zambian Kwacha-denominated Risk Sharing Credit Guarantee to support Zambeef Products Plc's $100 million expansion programme across its core operations in Zambia.

This guarantee is one of many innovative ways in which the Bank provides local currency to its borrowers, while also promoting collaboration with local commercial financial institutions. While this Board approval is indicative of progress, there are still additional regulatory steps and processes, including final agreements, which must be followed and completed before concluding the transaction.

Ultimately, 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 optimize existing assets and scale operations. The initiative is expected to significantly contribute to Zambia’s GDP and create employment and market opportunities.

Zambeef currently operates 236 retail outlets and contributes approximately 1% to Zambia's GDP. 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, African Development Bank Country Manager for Zambia.

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 "Industrialize Africa."

With this approval and with the trading environment becoming increasingly favourable, Zambia can look forward to the future with optimism.

Source: AfDB