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23rd March 2018

Supporting sustainable growth for Zambian agriculture

Scaling-up success for Kafue communities

InfraCo Africa will finance the construction of bulk water infrastructure and establish a 1,336ha irrigated commercial farm and community market gardens in Zambia’s Kafue district.

The Chiansi project will irrigate land in the neighbouring communities of Chikupi and Demu north and south.

Chiansi scales up lessons learned from the ground-breaking Chanyanya pilot, which will also have its irrigation system extended as part of the finance.

Alex Katon, InfraCo Africa executive director, said: “Chanyanya enabled us to successfully prove an innovative concept in irrigation and land management.”

Chanyanya pooled smallholder land and established a co-operative to enable development of irrigation infrastructure for a 148ha commercial farm and 126 market gardens.

“Our capital, expertise and established relationships with the Government of Zambia and local communities have enabled us to attract grant funding to expand the project and establish the much larger Chiansi initiative,” Alex added.

InfraCo Africa has signed a share sale and investment agreement with private investor SUDECO to deliver the Chiansi irrigation systems.

The agreement transfers InfraCo Africa’s equity stake in the project to SUDECO and commits up to US$12.5m in a convertible loan to the company.

US$6m in grant funding has been secured from the Dutch ORIO infrastructure fund and US$5m from PIDG’s Technical Assistance Facility.

InfraCo Africa’s work in the region demonstrates how tri-sector partnerships can improve agricultural productivity, stimulate economic growth and contribute to the long-term alleviation of poverty in Zambia.