ZAFFICO management shares strategic investment plans, as IDC boss, Muleya, visits


The Zambia Forestry and Forest Industries Corporation (ZAFFICO) has embarked on an extensive value addition initiative as part of its strategic commitment to maximizing commercial value for its wood products.

ZAFFICO Managing Director, Mundia Mundia, unveiled the ambitious investment plan during a recent visit to the company by Industrial Development Corporation (IDC) Chief Executive Officer, Cornwell Muleya.

Mundia outlined a strategic roadmap that spans the next few years.

“Over the next three years, ZAFFICO intends to make substantial investments in its infrastructure. Its plans include the establishment of a sawmill, creosote line, and kiln by 2024,” he said.

He stated that subsequent steps in 2025 entail the installation of a chipboard plant, followed by a plywood plant and a briquette factory in 2026.

Mundia said this forward-thinking approach aimed to significantly enhance the corporation’s value chain and operational efficiency, in line with the IDC’s operational reform agenda for its subsidiaries.

He emphasized ZAFFICO’s commitment to value addition and mechanization, seeking to elevate the company’s long-term value and revenue while retaining a focus on environmental sustainability.

“One crucial aspect of this strategy involves replenishing ZAFFICO’s dwindling wood stock by progressively adding 50,000 hectares of new plantations, with an annual planting target of 5,000 hectares over the next 10 years,” Mundia stated.

He stressed that this restocking initiative was envisioned to ensure sustained business growth and profitability in the future.

“To support this vision, ZAFFICO has already secured 50,000 hectares of land across four provinces—Luapula, Muchinga, Northern, and North-Western—for establishing new exotic forest plantations,” Mundia stated.

Read More: Green Economy minister, Nzovu, wants commercial partnership between Forestry Department, ZAFFICO

He indicated that the corporation was actively replanting 2,000 hectares of clear-felled areas annually, demonstrating its proactive stance toward ecological balance.

Commending ZAFFICO’s reinvestment efforts, Muleya emphasized the importance of seeking recapitalization using green funds to finance these capital projects.

“There is need for the company to collaborate with the Ministry of Green Economy to explore avenues for accessing funds through carbon credits, aligning with sustainable financing mechanisms,” Muleya advised.

He acknowledged ZAFFICO’s long-term investment strategy, noting its significance in securing a sustainable supply of wood products for the next decades.

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