Zambia's first palm oil plantation

By mahlokoane percy ngwato

Stay connected! Follow @AfricaBizReview and @MrNLon on Twitter. Like our Facebook Page.

Zambeef aims to capitalise on growing demand for palm oil by developing a plantation of its own. The market for edible oils in Zambia is estimated at 120,000 tonnes per year, and this is expected to grow. The total investment cost is estimated at $41.5 million.

Zampalm is Zambia’s first ever palm plantation and once operational will contribute to substituting 70,000 tonnes of cooking oil imported into Zambia, saving the country around US$70 million annually in foreign exchange.The plantation boasts 2,800 hectares of palm plants, which when harvested will produce crude palm oil.

It has supplemented this with a crushing mill constructed this year, with plans for several more crushing facilities over the next few years, which will take crude palm oil production up to 17,000 tonnes a year. Zampalm owns over 20,000 hectares of titled land, and has the intention is to plant on a further 5,000 by 2017.

RELATED:
Zambeef hatches new opportunities for Zambia's poultry industry
Could Japan be about to invest in Zambeef expansion?
Zambeef invests KS5.4 million in new dairy facilities

At current prices the average production of crude oil of 3 to 3.5 tonnes per hectare could generate more than $170 million in revenues over the next decade.

In addition to the commercial and economic benefits of the Zampalm plantation the initiative has provided a number of social and environmental benefits, including the creation of employment and infrastructure in the remote community in the area, which has high poverty levels.

The locally produced palm oil will enable government to cut back on crude palm oil imports which currently stand at over $70 million annually.

The success of the project has resulted in improvement in local amenities including accommodation, water and access to power. Zampalm’s operations have added 120 permanent employees and 400 seasonal workers to the local economy.  
Read the June Issue of African Business Review. 

Share

Featured Articles

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

As Accenture predicts the metaverse will fuel a US$1 trilion commerce opportunity by 2025, we round up 10 pioneering metaverse projects in the UAE

PwC’s survey shows Middle East CEOs remain upbeat on growth

CEOs in the Middle East are far more optimistic about regional growth than those in North America and Europe, according to PwC’s annual survey

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy

5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwC

Leadership & Strategy

Survey: The Future of Cloud Security in the Middle East

Technology