AfDB reportedly backs Zambeef’s expansion programme with $32 million credit guarantee

The African Development Bank (AfDB) Group has reportedly approved a Zambian Kwacha-denominated risk-sharing credit guarantee worth US$32 million to support Zambeef Products Plc’s US$100 million expansion programme across its core operations in Zambia.

In a statement on Sunday, the Bank said the strategic investment would significantly boost food security in Zambia and the wider Southern Africa region by doubling production capacity and enhancing efficiency throughout Zambeef’s integrated value chains—from crop production and animal feed to grain processing and meat products.

“Zambeef, one of Southern Africa’s largest integrated cold-chain food producers, will use the funding to optimise existing assets and scale operations,” the AfDB stated.

It claimed that: “The initiative is expected to significantly contribute to Zambia’s GDP and create employment and market opportunities.”

Raubil Durowoju, AfDB Country Manager for Zambia, said the intervention reaffirms the Bank’s commitment to supporting Zambia’s agricultural sector.

“This intervention for Zambeef reaffirms our solidarity with the Government of Zambia to deepen private sector participation in the agricultural value chain—particularly in ways that create jobs for women and youth,” Durowoju said. “This innovative local currency guarantee financing will also enhance stability in the domestic financial market,” he added.

The AfDB guarantee supports a US$25 million (equivalent) loan from Stanbic Bank Zambia to Zambeef, with an additional US$7 million allocated to cover interest and related liabilities.

The structure allows the AfDB to assume the credit risk, while Stanbic provides liquidity in local currency.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.