Increased investment opportunities in Zambia's agriculture market
The Zambian agriculture market has performed well despite Covid restrictions as government encourages investment into commercial farming.
3 minutes to read
The Zambia budget in October 2022 showed the sector mainly comprises three broad categories: crops, livestock, and fisheries and is dominated by small scale farmers who account for approximately 90% of agricultural producers, most of whom are involved in the production of staple foods, particularly maize.
Whilst traditional crops continue to be the main stay in the sector, Zambia has seen an increase in diversification with crops such as stevia, macadamias, blueberries and citrus being produced.
Maize production in the 2021/2022 crop season dropped by 25% from 3.6 million tonnes recorded during the 2020/2021 crop season. The Ministry of Agriculture attributed this drop to a reduction in the area planted and lower yields as a result of late onset of rains and drought.
Despite this drop, maize continues to be the largest contributor to crop production. According to published data by the Ministry of Finance and National Planning for the 2021/2022 crop season, maize accounted for 72% of total crop production. Other crops with notable contribution were, soya beans (8%), wheat (4%), sweet potatoes (4%) and groundnuts (3%).
On account of being the largest employer, the agricultural sector remains critical to achieving the Government’s ambitions of enhancing economic growth and job creation. It is for this reason that the Government seeks to promote agriculture as a way of diversifying the economy away from an overreliance on copper through industrialisation with a focus on value addition.
Stimulating growth in this sector remains critical given that its contribution to GDP has stagnated at about 3%.
Maize production in the 2021/2022 crop season dropped by 25% from 3.6 million tonnes recorded during the 2020/2021 crop season. The Ministry of Agriculture attributed this drop to a reduction in the area planted and lower yields as a result of late onset of rains and drought.
Data: Zambia Budget October 2022
Despite this drop, maize continues to be the largest contributor to crop production. According to published data by the Ministry of Finance and National Planning for the 2021/2022 crop season, maize accounted for 72% of total crop production. Other crops with notable contribution were, soya beans (8%), wheat (4%), sweet potatoes (4%) and groundnuts (3%).
Diversifying crops
One of the diversification export crops in Zambia is Haas avocados and on Buttermere Farm in Kabwe 35,000 trees have been planted on 100 hectares with expansion ongoing such as exporting this year for the first time to South Africa and Europe.
Agriculture contributes about 35% to the country’s non-traditional exports and about 10% of the total export earnings for the country.
It is because of this potential that the government encourages investment in commercial farming and has identified and established farm blocks to facilitate investments in commercial farming.
Zambia occupies a strategic trading position in Sub-Saharan Africa, bordered as it is by the Democratic Republic of the Congo, Tanzania, Zimbabwe, Angola, Mozambique, Namibia, Botswana and Malawi. It is one of the few countries in the region to have an annual surplus of cereal crops. Corporation Tax for agriculture is only 10% compared with 35% for other sectors.
Coffee exports
OLAM, a leading food and agriculture business has invested in a total of 7,200 hectares of farmland in the North of Zambia which comprises of five estates growing Arabica Coffee for export.
At present they are exporting roughly 4000 MT of coffee annually. The company employs roughly 3,400 labours (casual as well as contractual) and for six months of the year they employ 12,000 cash paid pickers. OLAM in Zambia is now exporting Arabica Coffee Beans to Starbucks in Seattle, USA, from their Ngoli Estate.
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