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Alba Iulia
Friday, September 10, 2021

ZDA wants to set up a Mango processing factory, seeks investors

Economy ZDA wants to set up a Mango processing factory, seeks investors

The Zambia Development Agency has invited the private sector to establish a modern mango processing project that falls under agro-processing subsector.

ZDA says the mango processing plant once established in the country will produce an average of 30,000 tonnes of mango pulp and 5,000 tonnes of dried mango per annum.

ZDA says the collection depots, with cold storage facilities will be constructed in all Provinces of Zambia and $5 million is required to operationalize the project.

The Agency says private investors will be expected to meet the entire project costs and the venture is expected to be operational in 12 months.

According to an Investment Project Proposal document, the Private Investors will be expected to meet the entire project costs of US$5 million.

“GRZ, Zambia Development Agency (ZDA), Ministry of Trade Commerce and Industry (MCTI) and other Government Agencies will assist the Private Investors to establish the project, through various forms of interventions. The project will be implemented through an Investments Company that will be wholly owned by Private Investors. The project will take 12 months to operationalize,” the document reads.

“The project will produce mango pulp and juice and dried mango chips using fresh mango fruits. The processed products will be of high quality and flavour that meets international standards. The mango pulp and juices will be packaged in appropriate packaging depending on their respective forms.”

“In the case of aseptic product, the pulp will be sterilized and packaged in aseptic bags. The refined pulp will also be packed in cans, hermetically sealed and restored. Frozen pulp will be pasteurized and deep frozen in plate freezers. ZMPP will use branded transparent plastic bags for packaging of dried mango snacks.”

The document says the funds will be utilised to meet the purchase of land, the construction costs of the processing plant buildings, acquisition of processing plant, equipment, machinery, vehicles and working capital to pay for raw materials, inputs, salaries and other operational costs.

“The investment is in the form of equity finance in an Investments Company that will manage and run the project. The project will start generating profits from the first year of operation, with net profit margins ranging from 10% in year one to 23% in year five.”

“The project offers an attractive investment opportunity with an estimated Internal Rate of Return (IRR) of 35%, a Pay Back Period of 4 years, a Discounted Cash Flow (DCF) valuation of US$28.5 million (using a discount rate of 12%) and a Net Present Value (NPV) of US$5.9 million.”

It says the project has positive social externalities through reducing poverty by indirectly empowering a large population of people mostly in rural areas who are involved in the farming and supply of mango fruits.

“In urban areas, employment will be created for those involved in the distribution of processed mango products. Furthermore, the project will have a positive social impact through minimisation of post-harvest loses for mango farmers thereby increasing levels of their disposable income and general welfare and standards of living. In addition the project to contribute to a rise in the Gross Domestic Product (GDP) and inflows of foreign currency through exports of processed mango products.”

23 COMMENTS

  1. You could have asked India to build the mango processing plant. The Indians have thousands of such plants.
    Instead you asked India to build oversized humps in Lusaka at a cost of $20 million per hump.
    Lack of vision

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  2. I strongly recommend any investor to hold off until the PF government has disappeared. Unless you want to see your investment being hijacked by corrupt PF government cadres! PF: Lying about everything, not delivering anything!

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  3. IDC is the one to approach. Nga nimwe you are looking for foreign companies. IDC should be doing that without even being told.

  4. This is called vision! Now I have no doubt whatsoever that farmers will prosper in the country now.

  5. President Lungu is keeping his promise to create jobs and business opportunities for people. It can’t get better than this.

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  6. I am so glad to read this news. God has just given me one more option to diversify. Thank you President Lungu.

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  7. It will rain jobs and businesses now. Mango growers and trader have immense opportunities to grow in trade and export.

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  8. The time has come to reap the benefits of people friendly policies. Time has come to create wealth and jobs.

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  9. I am so excited by this development. I have decided to get into mango plantation and trade. Thank you Your Excellency!

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  10. Why not right away? Don’t bring politics in the matters directly benefiting the common man of the country. This is nothing but being anti people.

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  11. This is the reflection of HH’s so called ‘investment policy’ which actually means selling the entity to foreigners. One can’t expect more than this.

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  12. Ah! The PF trolls are back! From entry #6 to #16 above these are all FAKE entries, made by probably one single criminal cadre, from one single device, and not even hiding they operate from the same (SA) IP address! You are found out! PF: Lying about everything, not delivering anything!

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  13. Come on LT, you KNOW that I am right about the trolls on entries #6 to #16! You should moderate THEM instead of me!

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  14. Who bewitched Zambians kanshi? You need investors for everything, I make my mango smoothies in my kitchen all I need is ripe mangoes a sharp knife, a chopping board , a blender and a fruit jar for storage. Do you need India or chinese to come and show you how to peel pineapples and mangoes? Nangu bututu kwena fimo muletontonkanya ko mwebene. Your brains are too docile because of the bible

  15. @Esmeralda. The reason they need investors is because they don’t want to risk IDC money on a project that may fail due to political miscalculations. I’m sure you are aware that our country is plagued with nepotism. An investor would make the best calls than uja guy waku IDC or Finance Minister.

  16. Under Kaunda’s (HHSRIP) government Zambia had Zamhort processing mangoes in Western province the equipment which like Indeni’s would by now have seen upgrades to better the products instead it was sold as scrap metal to South Africa, so too was SunQuick, Mwinilunga’s pineapple processing plant, Tarino orange and other flavors, Zambia had it all and things were progressing well but somehow all the effort vanished into thin air! Now reinventing it all trying to make it seem there is vision!

  17. Sounds too good to be true, which means it is not true 23% return not likely , there was one BIG question never answered who is going to buy all these mango products? there is not a shortage of mango products on the super market shelves at present. The super markets will buy from the cheapest company and also want guaranteed supply. $5,000,000 will not cover the land purchase, buildings, bottling and processing machines for a large production plus transport, ZESCO costs and marketing costs. yes if you are produce 1000 litres a week but you won’t make money, you need 100000 litres week just look at Ceeries fruit juices near Capetown SA and their costs and operations. to do it properly you are looking at 20Million $$

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