IFC, a member of the World Bank Group, has announced an investment of $30 million, partially denominated in Zambian Kwacha, to support the expansion of Zambeef Products Plc in Africa. Following an investment of $10 million in 2010, this is IFC’s second loan to Zambeef, which is emerging as one of the leading agribusinesses in the region.
Zambeef is involved in the production, processing, distribution and retail of beef, chicken, pork, dairy, edible oils and flour. IFC’s new investment will support Zambeef’s $60 million three-year expansion plan, which aims to increase production, add new retail outlets and make food production more efficient across the supply chain. Francis Grogan, CEO of Zambeef said: “Zambeef embarked upon an expansion drive some years ago, which includes local acquisitions and new operations in Ghana and Nigeria. IFC’s new loan supports Zambeef’s long-term growth strategy, which will enable us to provide more food products across Africa.”
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa said: “IFC’s long-standing partnership with Zambeef will help in the expansion of an African company, improve food production and contribute to food security in the region. The new investment should create employment opportunities, provide affordable food to consumers, and also benefit Zambeef’s employees, local suppliers and distributors. IFC’s investment in Zambeef reflects the organization’s commitment towards supporting viable local companies that will help develop Africa’s agribusiness value chain.”
The agribusiness sector is a key strategic priority for the IFC, especially in the face of the growing challenge of food security in Africa. The sector’s significance is further underscored because it employs a large percentage of Africa’s labour force, and has a strong impact on micro, small and medium-sized enterprises. IFC’s Kwacha loan will help Zambeef manage risk more effectively by limiting foreign currency risk.
