Entrepreneurship Zone: 19 April 2023 :: Eight businesses embracing Zambia’s agribusiness potential

Tue Apr 18 19:01:56 CAT 2023

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Entrepreneurship Zone: 19 April 2023 ::  Eight businesses embracing
Zambia’s agribusiness potential

*          

 <mailto:marketing at zitf.co.zw?subject=Exhibitor%20Training> 

Discover eight Zambia-based businesses making strides in areas such as
edible oil production, meat processing and fresh produce markets.

1. Soya bean trader expands business by manufacturing edible oil

Sarah Ngwenya founded Zambia-based Kalomo Grain Marketing Limited (KGML) in
2011. Initially focused on soya bean trading, the company expanded into
producing and exporting edible oil under the brand Supreme Oil. Despite
securing interest from a company in the Democratic Republic of Congo (DRC),
KGML faces capacity limitations, which led Ngwenya to seek funding for a new
processing plant to increase production. The company aims to expand into
markets such as the DRC and the US while maintaining a diversified income
from by-products like soya bean cake.
<https://www.howwemadeitinafrica.com/zambian-soya-bean-trader-expands-busine
ss-by-manufacturing-edible-oil/135276/>  

2. Businessman taps into cassava’s industrial potential

Premiercon Starch Company Limited, founded by Lubasi Yuyi, produces starch
from cassava and sweet potato in Zambia’s North-Western Province. Yuyi, a
former provincial lands officer, identified the potential for starch
production from cassava for use in mining processes, paper manufacturing,
and cardboard packaging. Between 2013 and 2015, the company focused on
establishing an outgrower scheme, cultivating improved cassava varieties
with higher starch yields and shorter maturity periods. Despite facing
funding challenges and delays in setting up the processing plant, Premiercon
now has a capacity of 48 tonnes per day. The company serves customers in the
construction and packaging industries and is working to expand its
production volumes to supply mining houses.
<https://www.howwemadeitinafrica.com/zambia-businessman-taps-into-cassavas-i
ndustrial-potential/134086/>  

3. Strawberry farming in Zambia

Farm23 Strawberry, founded by Bupe Chipili Mulapesi, began growing
strawberries in 2009 with just 20 plants and has since expanded to 96,000,
supplying both domestic and export markets with fresh Alinta strawberries
and strawberry jam. Initially facing scepticism from local consumers, Farm23
invested in marketing, packaging, and branding to compete with imported
products, eventually gaining orders from bigger supermarkets and hyper
stores. Despite the challenges posed by Covid-19, the company has expanded
its reach to include export markets like the Democratic Republic of Congo
and is exploring value-added products such as dehydrated strawberries, pure
strawberry juice, and dairy drink shakes. Farm23 also supports outgrower
schemes, providing seedlings and training to other farmers to grow organic
strawberries.
<https://www.howwemadeitinafrica.com/strawberry-farming-in-zambia-how-this-e
ntrepreneur-grew-her-business/133569/>  

4. Growing a meat processing business in Zambia

Arie de Kwaasteniet started Kachema Meat over two decades ago by rearing
orphaned calves on his farm in Lusaka, Zambia. The company has since evolved
into a nationwide distributor, selling around 10,000 kg of beef, chicken,
and pork daily across Zambia’s tourism, retail, and hospitality sectors.
Despite the pandemic’s impact on tourism, Kachema Meat adapted by increasing
sales to mining and suburban areas. Innovative packaging methods, such as
vacuum skin packs, have contributed to the company’s growth. De Kwaasteniet
hopes for improvements in Zambia’s tax regime and infrastructure to widen
Kachema Meat’s market base and compete with major players like Zambeef. The
company currently exports to the Democratic Republic of Congo and aims to
expand its reach in southern and east Africa.
<https://www.howwemadeitinafrica.com/growing-a-meat-processing-business-in-z
ambia-entrepreneur-shares-his-story/131811/>  

5. Dried mango for the export market: Entrepreneur’s agro-processing bet
pays off

Chankwakwa, a Zambian agro-processing company, was founded by Dorothy
Eriksson when she recognised the opportunity to turn excess mangoes into
value-added products. The company, which began by drying mangoes, now
exports dried mango to Europe and supplies jams, sauces, dried fruits,
honey, and soya products to supermarket chains throughout Zambia. With
certifications in place, Chankwakwa started shipping sun-dried mangoes to
Denmark in 2011. The company works with small-scale farmers in Zambia,
fostering strong relationships and providing support during harvests. While
dried mango is primarily for export, Chankwakwa’s other products are
produced for the local market, with the company considering further export
opportunities under the African Growth and Opportunity Act. 

6. Rethinking the traditional open-air fruit and veg market

Savenda Capital is in the process of establishing a modern, purpose-built
fresh produce market in Zambia’s capital, Lusaka, that will offer
small-scale farmers an alternative to informal open-air markets that lack
cold-storage space and often have exploitative commission structures. The
6,400m2 ZAMBIAFresh Lusaka Market will feature refrigeration and ripening
rooms to reduce spoilage and ensure freshness. The venture aims to offer
fair prices for buyers and sellers through transparent market rules and a
trading software system. It will implement strict food handling and hygiene
standards and traceability of all produce to its original producer.
<https://www.howwemadeitinafrica.com/zambia-rethinking-the-traditional-open-
air-fruit-and-veg-market/146358/>  

7. Capitalising on opportunities in Africa’s fish farming industry

FirstWave Group, a vertically integrated fish farming business with
operations in Zambia and Uganda, is taking advantage of the growing demand
for fish in Africa. Co-CEO Tembwe Mutungu explains that fish is the most
affordable protein source for urban consumers in Africa from cost, health,
and environmental perspectives. FirstWave Group operates in the entire value
chain, from fish feed production to retailing fresh fish in urban centres
throughout East and Southern Africa. Despite a high demand for fish, a
significant percentage of fish consumed in Africa is still imported, which
FirstWave sees as an opportunity.
<https://www.howwemadeitinafrica.com/capitalising-on-opportunities-in-africa
s-fish-farming-industry/123832/> Read the full article

8. Commercialising goat meat in Zambia

Zambian entrepreneur Paul Nyambe founded Zamgoat to commercialise goat
meat, which was not commonly found in supermarkets despite the prevalence of
goat farming in the country. The company’s success grew quickly, with demand
increasing for pre-packaged goat meat. Zamgoat built a network of
smallholder farmers to source the animals and provided breeding stock,
training, and knowledge services to improve productivity. With financial
assistance from various organisations, including the African Development
Bank and the World Bank, Zamgoat set up a goat slaughterhouse and processing
facility. The company plans to expand its market reach with new products,
including goat burgers and pizza, as well as the quick-service restaurant
Zamgoat Xpress.
<https://www.howwemadeitinafrica.com/commercialising-goat-meat-in-zambia-the
-story-of-zamgoat/116360/> Read the full article

Tackling distribution hurdles

One of the main challenges BFF faced in its early days was distribution.
Initially, its products were only available in the economic capital,
Bujumbura, as there were no strong specialised third-party FMCG distribution
players covering the entire country. Large FMCG companies, such as Heineken,
typically handles their own distribution with their own trucks.

To overcome this challenge, BFF collaborated with established small-scale
distribution businesses, encouraging them to expand their reach. In line
with the long consumer goods supply chains commonly found in many African
countries, the distributors BFF works with supply wholesalers, who then
provide products to smaller semi-wholesalers. These semi-wholesalers
ultimately supply the retailers.

The DRC: A giant next door

Nikondeha identifies a significant market for BFF’s products in the eastern
part of the Democratic Republic of Congo (DRC). The company has already
begun selling its products in small quantities, with availability in
approximately 11 outlets. BFF is currently evaluating strategies to boost
its sales in the region, such as whether to open a factory in the country or
continue exporting its products from Burundi.

The DRC last year joined the East African Community, and according to
Nikondeha, the eastern DRC offers a substantial market with higher
purchasing power than Burundi.

One advantage of trading in the DRC is that goods are priced in US dollars,
which benefits BFF as it imports ingredients like powdered milk and
packaging materials from Europe. Burundi, on the other hand, faces a
shortage of US dollars.

Claude Nikondeha

- Howwemadeitinafrica

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