Kalene Hills Fruit Project (Industrial Development Corporation)
Agriculture
Information
Company Description
The Industrial Development Corporation (IDC) Limited is a State-Owned Enterprise (SOE) charged with the mandate to spearhead the Zambian Government's commercial investments agenda aimed at strengthening Zambia's industrial base and job creation. The IDC was established to create and maximise long-term shareholder value as an active investor and shareholder of successful state-owned enterprises, as well as undertake industrialisation and rural development activities through the creation of new industries.
Countries of Operation
Zambia
Ownership of Company
Not indicated
Number of years since incorporated
10 Years
Project Pitch
Kalene Hills Fruit Project. The Kalene Hills Fruit Project involves the development and construction of a fruit and vegetable processing company in Mwinilunga District in the Northwestern Province of Zambia. Kalene Hills project will operate under the company Kalene Hills Fruit Company, a subsidiary of the Zambia Fruit Company, wholly owned by the Industrial Development Cooperation. The Project is open for FDI through a minority or majority stake. The estimated cost for the project is ZMW 92.98 million (USD 7.2 million) to cover key costs such as land acquisition, project development costs, civil works and construction, working capital requirements, equipment procurement and installation. ZMW 32.5 million (USD 2.5 million) has been funded and the IDC is seeking for approximately ZMW 60.4 Million million (USD 4.7 million) to close the financing gap. The IDC has already implemented the procurement process involving the identification, due diligence and contracting of primary contractors for architectural designing works, manufacturing and supply of equipment, civil construction works and project management and is expected to be commissioned in 2022. The Project is highly profitable and is expected to generate positive operating cashflows with a sustainable 55 to 60% Gross Profit Margin, 25 to 30% EBITDA Margin and 10 to 15% Net Profit margin. The site location lies within proximity of the Central Business District (CBD) and sits on 100 hectares of land. The proximal location of the project to farmers who have capacity to supply the required quantities of raw materials (fruits and vegetables); target domestic market and potential export market gives the project a competitive advantage in terms of its assured supply of raw materials and market.
Team
TThe Management structure will include senior management with vast experience from Zambia and foreign experts from the equipment’s manufacturing plant in India. The foreign experts will train the local employees on the running and maintenance of the plant equipment. Key personnel will also be sent for expert training on fruit and vegetable processing in India. The recruitment process for middle management and junior staff will harness the local labour to a greater extent. The company shall have a total of twenty-nine (29) employee-positions with eight (8) grading classifications. The projects will employ a combined total of 134 employees in year one, 222 in year two and 290 in year three.
Stage
Preliminary | Initial studies completed | Feasibility study completed | Approval required and obtained
Annual Revenue (in EUR)
Not indicated
Number of employees
Not indicated
Total Project Cost (in USD)
USD 7,200,000
Financing needs (in USD)
USD 4,700,000
Type of financing needed
Not indicated
Planned allocation of fundraising capital
Greenfield (new activity for the company)