Agriculture & Agro-Processing
LevrAge Sector Report: Agriculture & Agro-Processing (2025)
Executive Summary
- **Massive land endowment, massive gap.** 42M hectares arable, only 15% under cultivation. Water-abundant, low-cost land makes Zambia Southern Africa's breadbasket candidate.
- **Value-add is the story.** Government pushing agro-processing: milling, packaging, cold chain, livestock processing to capture margins and create jobs. 70% of exports still raw.
- **Climate-smart anchor.** Conservation agriculture, precision farming, and climate-resilient seeds gaining traction. DFI backing for sustainable intensification models.
- **Export corridors opening.** Regional demand (DRC, Zimbabwe, Malawi) + AGOA access + EU trade agreements unlock maize, soy, horticulture, livestock exports.
- **ZECS competitive advantage.** Investors with clear land tenure, water rights, agro-processing plans, and outgrower schemes secure ZDA incentives and fast-track approvals.
ZDA Investment Landscape
Why Agriculture Matters to Zambia
Strategic Position:
- 42M hectares arable land (only 15% cultivated)
- Water abundance: 40% of SADC freshwater resources
- Regional breadbasket: Maize, soy, wheat, cassava, livestock
- Agro-processing hub potential: Value-add manufacturing, cold chain
Government Priorities
8th National Development Plan (8NDP) Focus:
- Increase agricultural GDP contribution to 20%
- Expand irrigation from 200K to 500K hectares
- Develop agro-processing zones and cold chain infrastructure
- Promote conservation agriculture and climate-smart practices
- Enhance farmer cooperatives and outgrower schemes
Investment Incentives & Policy Framework
Farm Block Development Program:
- 5-year corporate tax holiday for farm investments
- Zero-rated VAT on agricultural equipment and inputs
- Land lease incentives: Long-term (99-year) leases in designated farm blocks
- Agro-processing incentives: Additional 5-year tax holiday for value-add
- Export incentives: Duty drawback on processed agricultural exports
Priority Value Chains:
- Maize, soy, wheat (grains & milling)
- Horticulture (vegetables, fruits, cut flowers)
- Livestock (beef, poultry, dairy, aquaculture)
- Cassava (flour, starch, ethanol)
- Oilseeds (sunflower, groundnuts)
Sector Statistics
- Arable Land: 42M hectares (only 6.3M cultivated)
- Irrigation: 200K hectares (targeting 500K by 2030)
- Agricultural GDP: ~10% (targeting 20%)
- Employment: 50%+ of rural population
- Export Growth: +15% annually
- FDI Target: $2B+ in agribusiness (2025-2030)
ZECS Readiness Requirements
To be competitive for farm blocks, agro-processing incentives, and export licenses:
Regulatory & Compliance Pathway (20% of ZECS score)
- Land lease or title documentation (ZDA farm blocks)
- Environmental Impact Assessment (EIA) for large-scale farms
- Water use permit and irrigation plan
- Zambia Bureau of Standards certification (for processing)
- Export license (if applicable)
- Unclear land tenure or customary land disputes
- Missing water rights documentation
- No environmental management plan
- Incomplete food safety certifications
- Engage with Ministry of Agriculture early
- Partner with local cooperatives for outgrower schemes
- Plan for GlobalGAP or organic certifications
- Invest in farmer training and extension services
Local Partner Fit (20% of ZECS score)
- Outgrower scheme or smallholder linkages
- Local agronomist and extension services
- Community benefit-sharing (employment, training)
- Local content plan for inputs and services
- Off-taker agreements or export contracts
- Co-invest with Zambian agribusinesses
- Engage traditional authorities for land access
- Create farmer cooperatives and nucleus farm models
- Support community food security and nutrition
Financial Preparedness (15% of ZECS score)
- Bankable business plan with cash flow projections
- CapEx breakdown (land, equipment, infrastructure)
- Off-taker agreements or export contracts
- DFI engagement (AfDB, IFC, IFAD, USAID)
- Working capital and seasonal finance plan
LevrAge Facilitation Pathway
Phase 1: Entry Strategy (60-90 days)
Our Role:
- Map ZDA farm blocks and land availability
- Identify suitable joint venture partners (agribusinesses, cooperatives)
- Assess water rights and irrigation infrastructure
- Facilitate introductions to Ministry of Agriculture
Deliverables:
- Agribusiness entry roadmap
- Land and water rights assessment
- Regulatory checklist and timeline
Phase 2: Stakeholder Engagement (90-180 days)
Our Role:
- Coordinate meetings with Ministry of Agriculture and ZDA
- Facilitate community consultations and traditional authority engagement
- Connect with off-takers and export buyers
- Arrange agronomic assessments and soil surveys
Phase 3: Deal Structuring (180-360 days)
Our Role:
- Farm lease or purchase negotiation support
- Outgrower scheme design and implementation
- Off-taker agreement facilitation
- DFI and blended finance introductions
Typical Timeline: 12-24 months from land acquisition to first harvest
Active Opportunities
Featured Project: Soy Processing & Export Facility
Investor: Agricultural commodities trader
Commodity: Soybeans (meal, oil, lecithin)
Location: Central Province (farm block)
Stage: Land secured, financing
Investment: $45M
Systemic Value Score: 76% (High Impact)
Why It Matters:
- Integrated soy farm + processing facility
- 10,000 hectare farm + 200 ton/day mill
- Export to regional markets (DRC, Malawi)
- 500+ direct jobs, 2,000+ outgrower farmers
- USAID and AfDB interest
ZECS Status: Verified (Silver tier)
Featured Project: Cold Chain & Horticulture Hub
Investor: Agro-logistics consortium
Technology: Solar-powered cold storage + packhouse
Location: Lusaka (Multi-Facility Economic Zone)
Stage: Feasibility
Investment: $25M
Systemic Value Score: 81% (Catalytic)
Why It Matters:
- Reduces post-harvest losses (40% → 10%)
- Enables horticultural exports (EU, regional)
- Aggregates 5,000+ smallholder farmers
- Creates 300 jobs (cooling, packing, logistics)
- Unlocks premium export markets
ZECS Status: In Process (targeting Gold tier)
Sector Outlook & Trends
2025-2030 Opportunities
Commercial Farming
- Large-scale grain farming (maize, soy, wheat)
- Livestock ranching and feedlots
- Aquaculture and fish farming
- Contract farming with anchor buyers
Agro-Processing
- Grain milling and flour production
- Oilseed crushing and refining
- Meat and dairy processing
- Cassava flour and starch
- Fruit and vegetable canning
Climate-Smart Agriculture
- Conservation agriculture equipment
- Precision farming and IoT sensors
- Drought-resistant seed development
- Organic and regenerative farming
Agricultural Services
- Mechanization and equipment leasing
- Agronomist extension services
- Input supply and distribution
- Warehousing and commodity trading
Key Success Factors
✅ Secure water rights early (irrigation is key to yields)
✅ Engage communities proactively (customary land requires chief approval)
✅ Plan for value-add (government favors processing over raw exports)
✅ Build outgrower schemes (social license + supply chain resilience)
✅ Invest in cold chain (post-harvest losses = major challenge)
Next Steps
For Investors
- Start with Free ZECS Precheck → Get Your Score
- Review Active Pipeline → ZDA Pipeline Console
- Download Meeting Prep Guide → Embassy Readiness Checklist
- Book Consultation → Schedule 30-Min Assessment
For Partners
- Submit Opportunity → Project Intake Form
- Request Partnership Brief → Contact Us
- Zambia Development Agency (ZDA): Agriculture sector profiles
- Ministry of Agriculture: National Agricultural Policy
- Zambia Agriculture Research Institute (ZARI): Crop and livestock data
- Conservation Farming Unit (CFU): Climate-smart practices
- Zambia Bureau of Standards (ZBS): Food safety and quality standards
- LevrAge Resources: Zambia Investment Roadshow 2025 Results, ZECS Methodology
Disclaimer
This sector brief is provided for informational purposes and reflects publicly available data from ZDA and government sources. It does not constitute investment advice, legal guidance, or an endorsement by the Zambia Development Agency or Government of Zambia. ZECS is an independent readiness assessment by LevrAge Strategy & Solutions.
Last Updated: October 12, 2025
Contact: LevrAge Strategy & Solutions | info@levrage.solutions
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