Growth in farming sector creates logistics opportunties

An instruction by Zambian president Edgar Lungu has created a new market for locally grown produce. Issued in April, the decree has already seen locally manufactured peanut butter and honey on the shelves of South African-owned supermarket chains, as well as Zambiangrown greens and vegetables in the perishables section. A number of people interviewed by FTW said they were going to start farming ventures as a result of the creation of the new market. Many Zambians have access to highly fertile and irrigated land which has been lying idle for years because of the lack of distribution channels and a market. The rise of the Zambian middle class and the opening of supermarkets have created the opportunity. Speaking at the opening of the new US$50-million Mukuba Mall in Kitwe, Lungu said there was no reason why Zambiangrown tomatoes and potatoes and other produce should not be given sufficient shelf space in supermarket chains which, he said, were benefiting from government’s investment initiatives and incentives. He said he would personally be making surprise visits to the supermarket and small retail outlets to check on their compliance with his directive that Zambian produce and products be given enough shelf space in supermarkets. A large number of malls filled with South African chains have opened in the Copperbelt and the capital Lusaka. The knock-on effect for the logistics sector is that imports of fresh produce and other agricultural products that can be produced in Zambia will reduce, while imports of fertiliser, seeds and farming implements will grow. Farming implement imports have been exempted from duties and taxes as part of the government’s drive to promote agriculture. The sector is important because it has the biggest potential for job creation among the low-skilled and rural populations, in addition to saving foreign exchange. It also has export potential. Zambia bans the use of genetically modified products, and the farming is traditionally done organically by small-scale farmers. If marketed correctly to the health and socially conscious there is, therefore, a potential export market for the products. Lungu has directed the ministry of commerce, trade and industry to ensure that locally produced goods and services meet the quality standards of imported goods. He added that the ministry of commerce, trade and industry together with the Citizens Economic Empowerment Commission was working on a policy that would protect and support the growth of local participation in all economic sectors. CAPTION Now available on Zambian shelves – locally grown organic products “grown without pesticides or chemicals,” according to the label.