The Citizens Economic Empowerment Commission (CEEC) has pumped in about K5 million for the development of a cotton value chain in Mumbwa district of Central province.
Minister of Commerce, Trade and Industry Robert Sichinga, who flagged off the cotton value chain project in Mumbwa yesterday, said more than 11,000 jobs were expected to be created in the district.
Mr. Sichinga revealed that a bulk of the money amounting to K3.5 million went towards the Mumbwa Ginning and Pressing Company which was established by the Zambia National Farmers’ Union (ZNFU), Cotton Association of Zambia and the Mumbwa District Farmers’ Association.
He said Mumbwa Ginning and Pressing Company, which will be the only indigenously owned cotton ginning company in Zambia, will be the anchor of the cotton value chain.
The minister said the establishment of the company will have a multiplier effect as 2,200 cotton farmers were expected to feed into the ginning company while other beneficiaries will be suppliers, contractors and transporters.
Mr. Sichinga said the project was an indication that government was committed to delivering development to all parts of the country.
He said the cotton value chain project was the beginning of the Mumbwa’s industrialisation as the CEEC will identify other projects to support once resources are available.
And Mumbwa Ginning and Pressing Company Managing Director, Danford Simujika, said the establishment of the cotton company has helped improve the price of cotton in the country.
Mr. Simujika said during last year’s cotton marketing season, other cotton companies were offering K1.80n per kilogramme, while his company was offering cotton farmers a fair price of K2.20n per kilogramme.
He also said more farmers will be accorded an opportunity to own shares in the company because once the CEEC loan is settled, the 32 percent stake CEEC currently holds will be offloaded to farmers.
Mr. Simujika thanked government for supporting the company saying it will result in the creation of employment for the people of Mumbwa district.
