Deal #2402

Land area

Intended size

26 700 ha

Size under contract (leased or purchased area)

[1993] 16500 ha
[2009] 26300 ha
[2012, current] 26700 ha

Size in operation (production)

[2012] 16000 ha
[2023-08-31, current] 28 000 ha

Comment on land area

the original plantation was established in the 1970s but the area was expanded continuously. In 2009 Zambia Sugar acquired Nanga Farms from ZamBeef. In 2012 Zambia Sugar obtained Magobbo. The 2023 annual report indicates 28 000ha is under sugarcane cultivation.

Intention of investment

[current] Biomass for biofuels, Fodder, Food crops, Renewable energy unspecified

Comment on intention of investment

Residues from the plantation are used for cattle feed and to power the processing plants that process the cane into various products. The company is looking into production of ethanol.

Nature of the deal

Outright purchase

Negotiation status

[2001, current] Concluded (Contract signed)

Comment on negotiation status

Illovo gained a share in Zambia Sugar in 2001

Implementation status

[1970, current] In operation (production)

Comment on implementation status

Started under CDC in the 1970s. The total indicative share trading liquidity for Zambia Sugar Plc (ZMSG.zm) in the past 12 months, as of 1st January 2022, is US$194.74K (ZMW14.3M).

Contract farming

Yes

Not on leased / purchased (out-grower)

Yes

Not on leased area/farmers/households (out-grower)

160
[2023, current] 403 3 885

Comment on contract farming

Operates one of the world's leading outgrower schemes involving commercial and smallholder farmers, which is a collaboration of 403 outgrowers with 3 885 people employed by 18 Commercial farmers and 385 smallholders in 3 schemes