Zambeef selling two of its four estates

By Amb. Emmanuel Mwamba

Zambeef selling two of its four estates

Chiawa Farm is located in the southern Zambezi valley of Zambia, at the convergence of the Kafue and Zambezi Rivers, approximately 10 km north-east of Chirundu town.

The farm was acquired by Zambeef in 2009 for approximately USD6m.

Furthermore, the Group’s largest, most efficient and most profitable farming estate is Mpongwe Farm, and, as mentioned in the Chief Executive Officer’s Review in the Annual Report, Zambeef has been actively seeking buyers for its Chiawa and Sinazongwe Farms.

Why is Zambeef Selling?

The need to have four farming estates very far apart from each other is costly, inefficient and administratively cumbersome.

Both the Zambia National Service and Zambia Correctional Service have announced that Government has bought the Chiawa Farm.

Both the Chiawa and Sinazongwe sale proceeds will be used to pay down the Group’s debt and thus reduce gearing and interest costs.