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.
It is an excellent explanation to highlight the development and the reason why. But unfortunately I always complain the UPND media is always on defensive and the information is always scant too limited. Thanks for the above detailed information. I urge all the UPND media to understand that 70% of voters are free will and depends on the media. These are the voters who don’t belong to any political party but vote according to performance or promises of political party.
So UPND media sympathisers remove emotions, give people well researched information like the above. We know what PF did they killed Nsama etc.
The above information is well done, but I believe it would have come far before Emmanuel wrote anything. Please be ahead of informing people on any progressive matters.
Idiot and foolish praise singer
Foolish pf kandile who is missing ka saka ka ndalama
Well explained Alexander. This is what the Government should always strive to do, to explain things when there are allegations in the social media, especially from the opposition with the likes of Emmanuel Mwamba.
Well explained BUT THE FERTILITY OF LAND IS WHAT IS IN QUESTION HERE
I am of the view that soil and many other tests were carried out before embarking on a development of this magnitude.
In what capacity are you explaining government decision nkosi? I have never seen an educated coward and opportunist like you nkosi. When HH was in opposition you used to discredit him and you never agreed with him on any economic idea he used to propound. Now that HH is the president you have changed all your economic theories and you agree and defend everything done by upnd and HH. But HH is more smart than you so if you think he can blindly reward you for this change and praise singing you have embarked on then you are wasting your time. Be principled and consistent. Farming should be left to citizens. Government should support farmers to be able to produce more not gvt producing itself.
Come on now UPND government, you have lost the plot!
Don’t tell us this is biblical too…
Your job is to create policies that will support farmers and manufacturing industries
You were elected to govern and not farmers
Are you for real? ZNS and Prison Services have been in food production since UNIP days.
Is this deal not better than the $40 million spent on fire tender ?
Ask mwandi
Another cut and paste article. But sheds light that Zambeef has been shedding its assets. It doesnt explain why, Bwana Nkosi.
What is going on at Zambeef for it to decide to sell assets that are strategically its strength. This could affect its share price overnight and all from an article that Emmanuel Mwamba wrote to cast aspiration on certain individuals.
From what you state Nkosi, Zambeef has been selling part of its operations from 2008. So this sale is nothing sinister on its part.
For those critical of UPND and ZNS. Ask yourselves about the PF Wonder fimo fimo transaction to IDC and its valuation. Conflict of interest and the manner the transaction occured (transparency). Are aspect one may question.
Let Zambeef come in and tell us what is going on, other wise will have every manner of opinions.
Thanks a lot Nkosi, your submission is very excellent and makes a lot of sense.I was initially very worried and got confused by Mwamba I totally forgot about his character and got carried away by his insinuations.Mwamba didn’t research properly on this land and assets it is holding he simply got ashes and left the fire as usual.He is a proper alarmist and sadly I fell pray to his rigmarole and irresponsible shambles of submission.Nkosi you have done it and just straight to the point outlining the most important facts that need to be known by many.The government ‘s interest is to make sure that no one sleeps hungry.With this climate change the government has made sure that production of maize is increased to mitigate this hunger situation which was falling on us.This is how working governments operate.President Hichilema and his government need to be congratulated for a number of initiatives they have undertaken to aliviate poverty and hunger in this country.The arm chair critics are left standing at akimbo thinking what to say next like sniff dogs trying to pounce on suspected drug pusher.
There’s another angle to the transaction worth mentioning. Markets whether real estate, financial, automobile, tend to be small and illiquid in small economies such as Zambia’s. This means that it’s often difficult to find buyers of certain assets in sufficient numbers if the government itself or foreigners do not come in to buy. Standard-Chartered hv two big pieces of commercial office space on sale on Cairo Road in Lusaka. For close to a decade, they cannot find buyers. A number of mines have changed ownership in Zambia. How many Zambians have even made a bid to buy them? Not one. That’s the business reality in low-income countries.
This is far much a better deal than the Michael Chilufya Sata Toll plaza that the corrupt PF spent on US$4.5m to construct even when most of materials used were locally sourced.