AfDB to issue US$32M credit guarantee to support Zambeef expansion

ZAMBIA – The African Development Bank Group has approved a credit guarantee worth approximately US$32 million (ZMW 800 million) to support a major expansion project by Zambia-based agribusiness Zambeef Products Plc.

The financing, issued in local currency, is part of a broader US$100 million (ZMW 2.5 billion) capital investment aimed at increasing production capacity and improving operational efficiencies at the company’s core facilities in Zambia.

According to the Bank, the initiative will enhance food production and supply across Zambia and neighbouring countries by scaling up Zambeef’s vertically integrated operations that include crop farming, livestock rearing, animal feed manufacturing, and the processing of cereals and meat.

Zambeef, a key player in Southern Africa’s food supply sector, plans to use the credit facility to upgrade existing infrastructure and expand its network of processing and distribution facilities.

Currently operating 236 retail outlets across Zambia, the company contributes nearly 1% to the national GDP and plays a significant role in the employment sector.

The business covers the entire value chain—from farm production to retail—for beef, pork, chicken, dairy, eggs, flour, and animal feed, making it a critical player in the region’s agri-food economy.

Speaking on the development, Raubil Durowoju, the African Development Bank’s Country Manager for Zambia, said the local currency-based guarantee is expected to enhance participation by private businesses in the agricultural sector while also helping to stabilize Zambia’s financial markets.

The expansion plan, which was initiated in 2023 and is set to run over five years, is projected to generate around 1,398 direct jobs and an estimated 243,000 indirect employment opportunities.

In addition to employment, the project is also designed to support over 86,000 smallholder farmers and micro-enterprises by improving their access to national and cross-border markets.

This financial support aligns with Zambia’s 8th National Development Plan for 2022–2026 and the African Development Bank’s strategic objectives for the country and the continent, including efforts to increase food production and support agro-industrial development.

Although the Bank’s Board has approved the credit guarantee, the transaction still requires the finalization of additional agreements before the funds are disbursed and the program is fully implemented.

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