Two fruit processing companies; Kalene Hills Fruit Company Ltd (KHFC) and Eastern Tropical Fruit Company Ltd (ETFC), being established by the Industrial Development Corporation (IDC), have emerged as successful recipients of a US$143,873 grant each, following the call for concept notes by Musika under a challenge fund competition on “Stimulating agricultural markets and nutrition opportunities in bio-fortified crops, livestock and livestock products, fruits and vegetables and processing and retailing of nutritious foods”.
Musika’s grant support is meant to assist KHFC and ETFC to operationalize well-structured hybrid fruit processing plants in Mwinilunga and Katete districts, respectively, and develop the downstream supply of fruits and vegetables including pineapples, mangoes, guavas, oranges, bananas, and tomatoes.
To do this, the companies will develop out-grower schemes and provide training and skills development benefitting over 3,000 smallholder farmers, majority of whom are women and youth. This process will involve identifying and clustering farmers that demonstrat capacity to grow the required feedstock to help meet the capacity of plant intake.
With Musika support, KHFC and ETFC will adopt a business model that involves the establishment of satellite collection centres and input distribution points to help minimize logistics and transport costs for the farmers.
More specifically, the Grant will provide for the procurement of mobile washing equipment for each company, with an accompanying generator, for cleaning the produce at the point of collection, and six refrigerated trucks used to transport the produce to the factory without compromising the quality.
“In addition to the equipment, our support also emphasises on the two companies educating farmers on tha aspect of nutrition. This will be done through training and sensitisation on the importance of consuming natural fruit and vegetables produced within the local community,” explained Musika Managing Director, Mr Reuben Banda.
IDC Group CEO Mr Mateyo Kaluba said the IDC was happy to be associated with Musika, which has continued to stimulate agricultural markets in the country through the various farmer support programmes it undertakes.
“We are particularly proud of this partnership where Musika will provide cost-shared support for the operationalisation of the fruit processing plants through the supply of inputs and capacity building initiatives. The benefits that will accrue to the people of Katete, Mwinilunga and surrounding areas because of this partnership will be immeasurable,” Mr Kaluba said.
Musika’s support to KHFC and ETFC aims to develop and improve robust and inclusive private sector-driven supply chains for nutritious food products from agricultural production to processing and marketing functions. This is in line with its development approach that offers technical support and early stage catalytic financial support incentives to commercial entities across the agri-food sector to make investments in developing and testing business models that create opportunities for local processing, development of backward distribution channels and increased production of a diverse range of nutritious for rural communities.
About Musika
Musika is a Zambian non-profit company which started its operations in 2011 and currently receives funding support from the Swedish Embassy in Lusaka, Norwegian Government’s NORAD, Irish Aid and WorldFish to stimulate and support private investment in the agricultural market, with a particular focus on the smallholder and emerging farmer sectors.
Musika works across the country and in all aspects of the agricultural sector, providing advisory services and business support to agribusinesses that are committed to engaging smallholder and emergent farmers in strong and mutually beneficial commercial relationships as their clients, suppliers and customers. It’s approach to reducing poverty and creating wealth in rural Zambia involves stimulating business relationships between the corporate sector and smallholder farmers that provide not just market opportunities but also the knowledge and confidence for farmers to invest in and grow their businesses.
About IDC
The IDC is charged with the mandate to spearhead the Zambian Government’s commercial investment agenda aimed at strengthening the country’s industrial base and job creation. It was incorporated in January 2014 and is wholly owned by the Government through the Minister f Finance pursuant to the Minister of Finance (Incorporation) Act Cap 349 of the laws of Zambia. Currently, the IDC oversees 36 State-owned Enterprises in 12 economic and social sectors.
