ZAMBEEF PRODUCTS PLC
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Zambeef Products Plc is the largest integrated agribusiness company in Zambia, involved in the primary production, processing, distribution and retailing of cold chain food products (beef, chicken, pork, milk, egg, dairy) and one of the largest local cereal row cropping player (wheat, soya and maize). It mainly operates in Zambia through its five farms, own feedlots and processing facilities and sells its products via its Shoprite butcheries and its own retail network. Zambeef has also some operations in Nigeria and in Ghana.
What is our funding objective?
DEG, jointly with its partner FMO, provides to Zambeef a long-term loan of 15 million US-dollars for expansion investments. DEG has arranged as well as structured the financing, and funds 7.5 million US-dollars out of the total amount. The financing will support the expansion of its cold chain food operations, the completion of the construction of the Zamhatch stock feed plant, the growth of its retail network through the construction of macro outlets and a wholesale depot, and further investments in the farming and the distribution segments.
Why do we fund this investment?
Zambeef’s operations are key to support the growth of Zambian farming production and locally processed protein foods. Furthermore, the Group is a major employment provider in the region, with over 6,000 direct permanent jobs in Zambia, Ghana and Nigeria and cooperates with approximately 3,500 small-scale farmers for its supply in cattle, chickens, maize and milk. The Group is committed to Corporate Social Responsibility through various programs which include the construction of primary schools and health centres funded by the Group to ensure first necessity healthcare and education to staff families in remote areas, and cattle improvement programs specifically focused on small-scale farmers. Due to its major impact on access to food and employment in the region, DEG and FMO have regularly supported the Group’s expansion projects over the past ten years, and thereby DEG concludes its fourth facility with Zambeef. The financing contributes to supporting the SME sector in Africa.
More investments
| Date | Total FMO financing |
|---|---|
| 4/29/2022 | USD 5.00 MLN |
| 3/10/2024 | USD 10.00 MLN |
- Region
- Africa
- Country
- Zambia
- Sector
- Agribusiness, Food & Water
- Effective date
- 12/20/2016
- End date
- 4/29/2022
- Total FMO financing
- USD 7.50 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A