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Thursday, September 24, 2020

NAPSA Invests K60 Million into Three Fruit Processing Factories

Economy NAPSA Invests K60 Million into Three Fruit Processing Factories

The National Pension Scheme Authority (NAPSA) has invested a total of sixty million kwacha (K60 million) into three fruit processing factories through a short-term loan financing facility to the Industrial Development Corporation (IDC).

The IDC is setting up the Kalene Hills Fruit Company Limited in Mwinilunga District in North-Western Province, the Eastern Tropical Fruits Company in Eastern Province and a cashew processing company in Western Province.

The financing was made towards the early stage set up and mobilization of the three factories.

The IDC Investment Manager, Brian Nalishuwa said the factories will be processing local agricultural products ranging from pineapples, mangoes, guavas, oranges to bananas, tomatoes, cashew nuts and groundnuts, among others, for purposes of value addition.

According to a statement signed by NAPSA’s Head of Corporate Affairs, Cephas Sinyangwe, the products will include fruit juices, pulp, jam, concentrates, tin packed foods, mineral water, pickles and dried snacks.

Commenting on the development, Director General, Mr. Yollard Kachinda is delighted with the investment and reiterated its importance to the local people and the nation at large.

“These factories will create thousands of direct and indirect jobs through numerous out grower schemes and they give us quality products with a strong brand that will be able to compete favorably at both local and international markets.

The factories will stimulate the growth of other auxiliary local industries further bringing value to the people of the three provinces and the country as a whole,” said Mr. Kachinda.

The factories will provide a ready market to small-scale farmers, women, youth, retirees and other small-scale businesses as the project will act as an empowerment tool to the local community. This will in turn help to improve the livelihoods of the people in general.

“The local farmers, through the outgrower schemes, will be the major suppliers of the feed stock to the factories. It is gratifying to note that the farmers have pledged their full support and are looking forward to the projects.

“NAPSA will leverage the relationship with outgrower schemes through its project unit on the Extension of Coverage to the Informal Sector to onboard the farmers and other businesses onto the scheme so that they can also be socially protected. This is in line with our mission of securing the social economic well being of the people of Zambia,” he added

The fruit factories will not only boost the agro industry in the three provinces, but will also contribute to crop diversification, value addition in agribusiness and ultimately food security at regional and national levels.

The investment has been done under the economically targeted asset classes under the Authority’s Investment guidelines, principles and objectives aimed at not only prudently growing the members funds through diversified investments, but also contributing to economic growth, job creation and poverty alleviation.

The investment will enhance skills transfer and development and help with the reduction in importation of fruits and vegetables whilst earning the country some foreign exchange through exports.

It will also develop sustainable agro industries that will help in addressing food security and nutritional requirements of the Zambian population.

15 COMMENTS

  1. Mango-growing is not done professionally in Zambia. I hope there will be an out-grower scheme to improve the quality of the fruit. This is the low-tech industrialization that shouldn’t be beyond our capacity if jobs are 2b created, if our engineers and scientists are 2b real engineers and scientists, that is, work in a laboratory or workshop to design and experiment on things. Well done, folks. I will be keeping an eye on things.

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  2. THATS ONE WIDE PRODUCT RANGE, LONG OVERDUE AND HOPE YOU HAVE PUT UP VERY AGGRESSIVE MARKETING STRATEGIES TO PENETRATE THE MARKET ESPECIALLY THAT YOUR PRODUCTS ARE SIMILAR TO THAT BIGGEST COVID BENEFACTOR IN THE LAND.

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  3. For aggressive market penetration strategies consultancy services am readily available if you mind my red colour.

  4. Our independence heroes are clapping their hands in their graves. This is what UNIP had in place but some petty capitalists thought it was rubbish. Now we can start creating jobs for our people.

  5. So far it’s still a project. Let’s hope it succeeds. There’s work to be done. If the attitude towards state property that the auditor-general reveals in his yearly audits will continue, the future may not be bright.

  6. Good intentions for sure but a huge risk for NAPSA. A pension scheme should never invest in this manner. It should invest through corporate bonds so that it’s income is guaranteed.

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  7. I hope they focus on concentrates no need to launch their own finished brands at this stage. Concentrates are used by the big existing juice producers who import them just add water and claim made in Zambia. GRZ should increase duties on imported concentrates to encourage local sourcing

  8. That’s the thing I like about PF, they are about investing in industrialisation, unlike the MMD that wanted GRZ to remain a shareholder only while the foreign investor externalised all the funds to their countries.

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  9. Another bad investment given that IDC is involved…they have no control on what IDC does, we have heard such projects especially in Western Province they start every 5 years before elections

  10. @10. Mwenda, are you so dull as to think passive, low yield assets (Bonds) should be the only investment products open to pension funds? And you wonder why most Zambians are not considered for investment management jobs.

  11. Mulenga Tembo, great observation. Concentrate production is where the money is at present because there’s no competition. But do u think such thinking is going on @ IDC? I have no reason to think so because decision-makers @IDC aren’t risking their own har-earned money. The risk is always borne by the state ultimately and this explains the moral hazard, at least in part.

  12. Duda, it’s u who’s uninformed and not Mwenda. A pension fund would not normally invest in a project or a start-up business. And who told u that high-yielding means the money and interest will certainly be paid? The only comfort here is that the state stands behind IDC, otherwise NAPSA should hv nothing to do with a project like that.

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