Agribusiness for Africa’s Prosperity. Country Case Studies
Strengths and Opportunities Implementation of quality assurance processes in the value chain right from animal husbandry
to finished leather; consequently Zambian leather competes very well with regards to quality on the African continent; and
Available markets in South Africa, Singapore, the DRC, Japan, Hong Kong, Malawi, Britain,
Zimbabwe, China, and Turkey.
Weaknesses and Threats Inadequate technical skills in product development; Power outages by ZESCO (Zambia Electricity Supply Corporation), which affect the
consistency in product quality as the tanning process is disturbed;
Animal diseases (Bovine pleural pneumonia and foot and mouth diseases) that affect animal
population growth negatively and reduce the supply of raw material;
Import duties on chemicals for the tanning process and on components for finished goods
production sourced from outside of the SADC and COMESA regions, and VAT, which at 16 per cent is higher than the regional average; and
Lack of affordable trade finance.
Sugar Sugar is Zambia’s largest processed food export product and is widely used as a major ingredient in other processed foods. Sugar cane outgrowers employ 3,385 people, representing about 0.07 per cent of the total labour force in Zambia (CSO and Ministry of Labour, Labour Force Survey Report 2005). Strengths and Opportunities The country is the fourth lowest-cost sugar producer in the world; and Trade arrangements provide markets for processed foods in COMESA, SADC, and the EU.
Weaknesses and Threats Strict SPS standards in markets; Centralized SPS inspections and export permit issuance add to cost; Many food-processing enterprises lack international quality standards certifications; Increasing energy prices – petroleum and electricity – that tend to raise production and
transportation costs;
Inadequate local supply of raw materials; Outgrowers affected by limited irrigation facilities; and Low industry investment levels.
Other agricultural products promoted by ZDA include horticulture, fresh and dried vegetables, wheat flour, and other processed foods, beverages (tea and tea products), production and processing of raw timber into wood products, palm oil and their derivatives, pulp, paper and paper board, rubber products, honey and soya beans.
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