Saturday, January 18, 2025
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HomeGovernmentAlexander Nkosi explains investment in Chiawa Farm

Alexander Nkosi explains investment in Chiawa Farm

  1. 1. Direct Government Investment in Agriculture
  2. The Zambian government, through the Industrial Development Corporation (IDC), Zambia National Service (ZNS) and Zambia Correctional Service (ZCS), is directly involved in agricultural production.
    The Patriotic Front-led government has invested or rehabilitated Mununsi Banana Plantation, Kawambwa Tea Company, Karen Fruit Factory, Eastern Fruit Company and even invested US$16 million to acquire 90% of the shares of Zanperm Limited, a subsidiary of Zambeef Products, and invested in Mpika.
    The New Dawn government continued these investments in the agricultural sector through the expansion of agricultural projects under ZNS and ZCS.

  3. In 2022, ZCS acquired the 700 hectare Mwombosi Farm.
    Other major investments by ZCS include Nansanga Farm in Serenje, Lubambara 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 total of 39 recirculating irrigation systems.
    With the acquisition of Chiawa Zambeef Farm, the total number of irrigation structures in the district will increase to 72 with the potential to add another 17.
    This will significantly increase the irrigated area and winter crops, helping to strengthen the nation’s resilience to the effects of climate change.
    It is noted that ZCS is also looking to acquire 2,000 hectares of Green Farm in Luapula Province.

2.About Chaiwa Farm

It is an 8,658 hectare (21,394 acre) commercial game farm located on the Zambezi River within the Chaiwa Game Reserve adjacent to the Lower Zambezi National Park.
It was acquired by Zambeef in 2008 for a total of $6 million.
By 2009, Zambeef had invested a total of $16 million in farm expansion, irrigation infrastructure, storage facilities, offices, housing and the purchase of farm equipment.
There are currently a total of 33 district irrigation systems covering 2,158 hectares (5,332 acres) of irrigated land in a double crop of soya beans and winter wheat/winter maize.
Water rights on the Kafue and Zambezi rivers provide the opportunity to expand the area to 50 by adding a further 17 recirculating irrigation systems.


The site is fully equipped with the latest machinery and is in very good working order.
There are extensive residential and commercial buildings including a modern grain storage and drying complex with a 10,000 tonne capacity, workshops, weighbridge, machine shed, offices, staff apartments, administrative apartments, fish ponds, irrigation works and underground irrigation pipelines.
There are also good internal gravel roads and safety fencing throughout.

In addition, the farm has a vast natural bushland of 2,737 hectares (6,763 acres) with a wildlife corridor.
This is an added advantage of the farm, as it offers great potential for captive wild breeding and use as a residential/timeshare business, with easy and close access to both the Kafue and Zambezi rivers.
The corridor is home to animals such as elephants, buffalo, leopards, kudu, bushbuck, duiker, impala, bushpig, genet, civet, serval, baboon, vervet monkey, porcupine and badger.
There are several watering holes for the animals, which are kept full during the dry season, and a stream at the western end of the corridor.
The farm therefore also has great tourism potential.
Finally, the farm has its own private airstrip and is just 115km from Lusaka.


3. Zambeef Investment

Zambeef has launched a $100 million expansion programme for Mpongwe farms, which includes building modern infrastructure.
As the operating costs of expanding the giant enterprise across the country were high, the company decided to sell off some of its assets and expand its investment in Mpongwe.
The assets sold include: a 90% interest in 4,444ha of 20,238ha (3,864ha used for oil palm cultivation), Zampalm Ltd, which was sold to the Zambian government (IDC) in 2018 for $16 million, the 2,550ha Sinazongwe Farm sold to Chenguang Biotech for $10 million in 2020, and the 8,658ha Chiawa Farm, which will now be sold to the Zambian government in 2024 for $13.
5 million.


4. Conclusion

I strongly support government direct involvement in agricultural production through the Zambia National Service and the Zambia Correctional Service.
These two have great potential to contribute significantly to agricultural development with the right investments and agricultural structures.
Many of the operating costs of ZNS and ZCS are already borne by the state, allowing them to produce cost-effectively and compete with leading companies in the region.
All we need to do is outsource the production and management aspects of these investments to private companies to improve their economic viability and ensure profitability.
Thank you.

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