InfraCo Africa invests to develop a purpose-built fresh produce market in Lusaka

Lusaka, Zambia, 19th July 20222: InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), has signed an agreement with Savenda Capital committing US$2 million towards construction of the ZAMBIAFresh Lusaka Market in Zambia’s capital.

The purpose-built 6,400m² market floor will play host to fresh fruit and vegetables grown by farmers around Lusaka and across the country. With each unit being traceable back to its original producer, and the application of strict food handling and hygiene standards, buyers from small businesses and supermarkets alike are anticipated to source produce at the market – meaning better sales outcomes for smallholder farmers and a boost to the efficiency of Zambia’s horticultural value chain.

“The fresh produce value chain presents a rare opportunity to create a sustainable intersection for scalable institutional support for African small-scale farmers. The uniquely African commission agent system developed for fresh produce trading (and adapted for small-scale supplier base by ZAMBIAFresh) is especially supportive for farmer upliftment and development, while underpinning a more diverse range of high-quality produce for consumers” Sean Moolenschot, Managing Director, Savenda Capital.

The ZAMBIAFresh formal commission-agent market will operate on the basis of clearly defined market rules and use a trading software system that promotes transparency and efficiency for all users. As well as the main market floor, there will also be on-site cold-storage facilities to help maximise produce shelf-life and minimise waste, commercial retail buildings and an aeroponics facility growing leafy vegetables for year-round sale on the market. ZambiaFresh’s formal, commission-agent market will establish transparent market rules and a trading software system for sellers and buyers.

Philippa Viljoen, Business Development Manager at InfraCo Africa said of today’s announcement: “InfraCo Africa has extensive experience in Zambia’s agricultural sector, having been involved with the Chanyanya and Chiansi Irrigation projects in Kafue District over the past 16 years. The ZAMBIAFresh market feels like a natural extension of this commitment as we seek to increase and enhance fair market access for all Zambian smallholders.” She continued, “ZAMBIAFresh is the first market of its kind outside of South Africa. We are pleased to be supporting Savenda Capital to make the market a reality and hope that it will act as a model for similar facilities across Zambia and the wider region.”

Zambia has an estimated 330,000 smallholder producers of fresh fruit and vegetables, a large proportion of them women. Their ability to sell their produce is hampered by the limited facilities and food storage conditions at existing open-air markets, along with opaque brokerage fees and even the InfraCo Africa is supported by SAVENDACAPITAL threat of gender-based violence and harassment. With Zambia’s demand for fresh produce increasing,i current market practices are regarded as an impediment to the sector’s growth.ii By providing better access to markets and information, ZAMBIAFresh will support efforts to achieve UN Sustainable Development Goals (SDGs) 2 and 5 through improving the incomes of small-scale food producers, in particular women.

Expected to begin trading in 2023, ZAMBIAFresh has the potential in the future to more than double in size to become a 20,000m2 facility, trading up to 200,000 metric tons of fresh produce per annum. It is anticipated that ZAMBIAFresh will also demonstrate the value of formal, commission-agent fresh produce markets, catalysing the replication of such facilities across Zambia and the wider region and attracting private and development finance to the sector.

Notes to editors:

• Female farmers make up a large proportion of horticultural growers, and ZAMBIAFresh will actively promote and support female growers.

• The Government of Zambia has highlighted its commitment to expanding the country’s agricultural sector, making specific reference to value addition and market access.iii

• The facility will be located in the Lusaka South Multi-Facility Economic Zone.

• With support from PIDG company InfraCo Africa, ZAMBIAFresh will contribute towards the Green Growth Compact signed between the United Kingdom and Zambia during COP26 to drive sustainable investment, create jobs and strengthen economic partnership between the two countries.

• The US International Development Finance Corporation recently announced a US$7.5m loan to support ZAMBIAFresh Lusaka Market’s innovative market system.

The Private Infrastructure Development Group (PIDG) PIDG is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of opportunity, accountability, safety, integrity and impact. Since 2002, PIDG has supported 190 infrastructure projects to financial close which provided an estimated 220 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Germany and the IFC www.pidg.org InfraCo Africa: InfraCo Africa is part of the Private Infrastructure Development Group (PIDG) and seeks to alleviate poverty by mobilising investment into sub-Saharan infrastructure projects. It does this by investing directly into early-stage projects or by funding experienced teams to provide project development leadership. Through its investments arm, InfraCo Africa can also provide equity to close a financing gap and start construction or fund innovative solutions that need support to scale-up, to pilot new products or enter new markets. InfraCo Africa is funded by the governments of the United Kingdom (through FCDO), the Netherlands (through DGIS) and Switzerland (through SECO). To find out more visit: www.infracoafrica.com Savenda Capital: Savenda Capital is an impact venture and project development business. It is focussed on value chain infrastructure that connects customers and suppliers in market environments that are open and transparent to support the bottom of the pyramid sectors of African economies. Savenda Capital actively seeks out projects that support small-scale farmers. To find out more visit: http://www.savendacapital.com/

For more information contact:

Lorna McNae

Communications Manager

InfraCo Africa

lmcnae@infracoafrica.com

i Zambia Horticultural Wholesale Market Establishment Feasibility Study (May 2018). Coillard Hamusimbi, Independent Consultant. Commissioned by Musika and Indaba Agricultural Policy Research Institute (IAPRI).

ii Zambia Horticultural Wholesale Market Establishment Feasibility Study (May 2018). Coillard Hamusimbi, Independent Consultant. Commissioned by Musika and Indaba Agricultural Policy Research Institute (IAPRI).