In 2016, CDC invested $65 million in Zambeef Products plc, our first direct equity investment in Zambia since the early 2000s.
The investment combined a 17.5 per cent direct equity stake and the remaining as a structured instrument.
Our investment is enabling Zambeef to grow the business, in particular its cold chain food processing businesses, as well as expanding its distribution and retailing platform within Zambia and neighbouring countries.
Half of Africa’s workforce works in the agriculture sector and agribusinesses can support up to six jobs in the supply chain for each direct worker.
Zambeef sources most of its input locally from its own operations as well as a network of smallholder farmers, including 70 per cent of its cattle and around 80 per cent of its grain. This provides a much-needed market for over 10,000 small-scale farmers.
Farmers also benefit from Zambeef’s various extension services such as advice on increasing yields and caring for livestock. The company also provides up-to-date price information and help in treating cattle diseases in remote areas.
Micronutrient deficiencies affect more than 2 billion people worldwide. Zambeef’s shops are spread across the entire country and are often the only outlet to buy quality meat and animal feed products.
Cross-border traders from remote regions in Tanzania and the DRC also rely on Zambeef macro-stores to buy produce. The average customer in these countries has a household income of about £30-£50 per month and walks up to 30 minutes to get to a store.
Environmental and social aspects
We are also helping the company deliver environmental and social improvements over the next five to seven years.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- Africa, East Africa
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Food and agriculture
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Equity
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- September 2016
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.