amatheon

Zambia

FARMING IN ZAMBIA

In Zambia, Amatheon manages a strong portfolio of farming, trading and food processing activities. To date, the Amatheon Group has invested more than US$50 MIllion in Zambia and is integrating its activities along the agricultural value chain.

Large-Scale farming

Amatheon Agri Zambia Ltd (AAZ) is a subsidiary of Amatheon Agri Holding N.V. and began farming operations in Mumbwa District in 2012. Since inception, the company has successfully developed over 3,000 hectares of land for rain-fed and irrigated cropping activities and employees over 200 people on a permanent basis. In Zambia, Amatheon has proven its large-scale farming abilities with strong yields in maize, wheat and soya, and is constantly trialing new crops and varieties. By the end of 2015, two new dams had been constructed which significantly expand Amatheon’s irrigation capacities.

Outgrower Programme

Amatheon has developed a comprehensive Outgrower Programme that equips small-scale farmers with the necessary knowledge and access to inputs, credit, and a market to expand their businesses. Amatheon provides free training to surrounding farmers to help them improve their production, marketing, and financial literacy. In addition, Amatheon has established 40 rural depots for farmers to purchase high-quality inputs such as seeds and fertilizers, as well as a place for them to sell their produce to Amatheon. In 2015, Amatheon injected US$500.000 into the local economy through smallholder crop purchases. The programme supports 5,000 small-scale farmers and is run in partnership with MUSIKA, Conservation Farming Unit and World Vision.

Why Zambia?

Amatheon Agri chose Zambia as its first investment destination in 2012. Zambia is strategically located in Southern Africa – sharing borders with eight countries – and the farm site is well located in close proximity to Zambia’s capital, Lusaka, as well as the Copperbelt area. Zambia encompasses more than 750,000km² of land yet has a population of only 14 million, thus relatively low population density. Only 3% of Zambia’s arable land is irrigated while 40% of the water resources in southern Africa pass through the country – pointing to untapped irrigation potential. A steadily growing population – as well as steadily improving living standards – favorably enhances Zambia’s macro-economy. The country is politically stable and the creation of the Zambian Development Agency in 2006 was an important step towards further promoting investments, centralizing incentive schemes and aftercare services for investors. Being a member of the Southern African Development Community Free Trade Area (SADC-FTA), as well as the Common Market for Eastern and Southern Africa (COMESA), Zambia enjoys access to the largest regional economic grouping in Africa, comprising approximately 400 million people. Regional infrastructural projects strategically position the country as a land-linked transit hub to neighboring countries.