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Lusaka, Zambia, June 11, 2012
— IFC, a member of the World Bank Group, today 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 which was split $7 million for Zambeef Zambia and $3 million for its subsidiary in Nigeria, 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, eggs, dairy & milk, edible oils, stock feed, flour and bread. Zambeef is also one of the largest cereal row cropping operations in Zambia, with approximately 8,350 hectares of irrigated land and approximately 8,650 hectares of dry land, available for planting each year. The group has approximately 5,500 employees.
IFC’s new investment will support Zambeef’s expansion plan, which aims to increase production and processing capacity, add new retail outlets and improve efficiency.
Francis Grogan, CEO of Zambeef said, “Zambeef embarked upon an expansion drive some years ago, in order to meet increased consumer demand, aided by the continued growth of the Zambian economy. 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, 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 labor 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.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal year 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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