ZAMBIA – Musika, a non-profit company with focus on stimulating private investment in Zambia’s agricultural sector, has signed a Memorandum of Understanding (MoU) with Chipri Enterprises Zambia Limited to establish an out-grower scheme for small holder farmers.
Chipri Enterprises is a Zambian importer and exporter of vegetables and fruit.
The aim of the MoU, according to a facebook post by Musika, is to boost supply of quality horticultural produces by smallholder farmers in Lusaka, Southern, Central and Copperbelt Provinces.
To this end the company has invested to the tune of US$70,500 to support Chipri Enterprises’ efforts in developing the capacity of the farmers to produce the quantity and quality that the market demands through training.
“Investment into smallholder out growers supported with cold chain warehouses and transport is a precursor to unlocking some of the challenges faced by producers of fresh fruit and vegetables in Zambia.”Musika Managing Director – Reuben Banda
The funding provided will enable mobility of the extension staff on motorbike, establishment of 5 bulking centres or warehouses fully equipped with cold chain facilities, and procurement of a refrigerated truck to improve the shelf life and maintain the quality of the fruit and vegetables in storage and transit to the market.
“Investment into smallholder out growers supported with cold chain warehouses and transport is a precursor to unlocking some of the challenges faced by producers of fresh fruit and vegetables in Zambia.
“The existence of a ready market for the produce by Chipri Enterprises gives farmers the opportunity to be incorporated into structured markets that currently do not exist,” said Musika Managing Director, Reuben Banda.
The successful implementation of this intervention will impact over 2,500 smallholder farmers, especially women, and create employment opportunities for 300 people under the firm as well as in rural communities within the targeted areas.
In addition, it will help to diversify smallholder production and incomes by improving the range of crop production opportunities, which will in turn enhance income and reduce multiple risks including those presented by climate change.
Recently, Musika entered a partnership with Kemiko ltd, a SME that operates a starch and cassava flour processing plant.
The understanding is geared towards boosting Kemiko’s processing capacity and providing a secure and ready market to about 1,000 smallholder cassava growers in Northern and Luapula province.
With both parties not disclosing the value of the investment, the cassava acquired will be processed into cassava meal and cassava flour.
Liked this article? Subscribe to Food Business Africa News, our regular email newsletters with the latest news insights from Africa and the World’s food and agro industry. SUBSCRIBE HERE