MANY local coffee consumers in Zambia often relate the beverage to exotic countries abroad where they think it is produced.
Fe realise that Northern Province is a leading producer of coffee in Zambia where the agricultural sector has become a critical economic sector contributing immensely to the country’s total non-traditional exports.
Coffee production in Zambia started in the 1970s when the World Bank established a number of coffee projects throughout the country.
Among these was Kasama Coffee Company (KCC) in Northern Province.
The aim of the project was to encourage the cultivation of high quality coffee at the lowest possible cost.
The bulk of production was concentrated in large and well-organised coffee estates in the province.
However, there were many developments between the 1970s and early 2000 which produced mixed fortunes for coffee production in Zambia.
In 2012, Olam International Limited of Singapore, a leading global integrated supply chain manager and processor of agricultural products and food ingredients, took over the assets of Kasama Coffee Company which had been in receivership since 2008.
The Zambia Development Agency (ZDA) and the indebted banks had been shareholders and Olam renamed the Kasama Coffee Company as Northern Coffee Corporation Limited (NCCL).
The new company acquired 100 per cent equity interest in NCCL, the largest coffee estate in Zambia, for approximately US$6.15 million through a bidding process organised by ZDA.
A further US$40 million was committed as capital expenditure and pre-operative expenditure to fully develop 2,000 hectares of Arabica Coffee Plantation over a period of five years.
The estate was expected to yield approximately 4,500 metric tonnes of Arabica coffee beans by 2021 at steady-state.
NCCL Deputy General Manager Brahim Banda, who has worked for the coffee plantation for over 30 years, said since then, the Zambian coffee production has risen steadily, especially after the country first started exporting internationally in 1985.
He said the World Bank aimed at finding the most suitable and productive varieties for Zambia’s coffee farms.
Mr Banda further said coffee farming was getting abandoned in Zambia years ago when crops were destroyed by disease.
“The coming of Olam through its subsidiary NCCL has helped to revive the industry and has since put the country on the coffee growing map,” Mr Banda said.
Company Director Medu Medappa said Olam has since invested over US$70 million in its five estates being operated under NCCL in the province.
The estates include Kateshi, Ngoli, Luombe, Isanya and Nsunzu which sit on 7,200 hectares of land.
Approximately 2,171 hectares on these estates are cultivated for coffee production with dams, canals and reservoirs for irrigation.
The estates are established in Kasama, Mbala and Mungwi districts.
The investments also include dry and wet processing facilities, warehouses, drip irrigation and employee housing, as well as a research centre.
Mr Medappa said the company is currently in search of more land for it to expand its investments.
He said Olam International Limited has prioritised its investments in Zambia due to the prevailing conducive business conditions in the country.
“In Zambia where Olam already has 2,171 hectares planted, the company plans to increase estates through its subsidiary, Northern Coffee, one of the large scale producers in Africa,” Mr Medappa said.
He expressed happiness that the company is also one of the largest employers in Northern Province with about 4,000 employees and 10,000 seasonal workers.
“You will be amazed with what we are doing at the coffee farms. We are now the largest employer in Northern Province with about 4,000 employees and 10, 000 seasonal workers and have undertaken the largest outgrower scheme with over 3,000 small scale farmers,” he said.
Mr Medappa said this might make the coffee company one of the largest coffee producers in Africa.
Olam International Limited is also actively involved in sustainability programmes that support the development of local coffee communities while protecting the environment.
Safety, health and environmental officer Boyd Kanene said Olam has for nearly 10 years contributed to the country’s social economic development by ploughing back into the community through its corporate social responsibility (CSR) to a tune of over US$260,000.
The company partly funded the construction of Promoting Equality in African Schools (PEAS) Kampinda Secondary School in Kasama in 2018, which has enabled over 175 girls from 14 surrounding villages to be enrolled in boarding school.
In Mbala, the coffee company, through its Isanya Estate, is constructing a 1×3 classroom block at Isanya Primary School at a cost of K120,000.
The project has reached an advanced stage.
“The coffee company remains committed to supporting vulnerable students in realising their education for a better tomorrow and that the onus was on the students to reciprocate by taking their studies seriously,” Mr Kanene said.
Kateshi Secondary School head teacher Martin Mumbo said NCCL has facilitated for the construction of the secondary school within the coffee estates land.
Mr Mumbo said parents whose children had to walk long distances to attend secondary school education elsewhere in the neighbouring areas have a reason to smile now.
“Parents are happy because for the first time, construction of a secondary school, which is already in operation, has reached an advanced stage and is geared to be officially opened before the end of this year,” he said.
PEAS Kampinda Secondary School head teacher John Kapenda said NCCL’s gesture to support the construction of the school in 2018 has benefited 14 surrounding villages.
He said over 175 girls from vulnerable households have been enrolled in boarding.
“Northern Coffee Corporation Limited also supports and trains our pupils in agricultural studies especially in the area of coffee farming,” he said.
Agness Bwalya, one of the parents, said people in the surrounding villages of Kateshi Estate are happy to have two secondary schools within their locality, which they yearned to have for many years.
Isanya Primary School teacher in Mbala Stanzye Chanda Mbala said the construction of the 1×3 classroom block at the school by NCCL will benefit the learning institution once complete.
“On behalf of the school, we are grateful to NCCL for this gesture because the role this facility will play in the community will transform many lives of the school-going children,” he said.
NCCL has also partnered with the Government in running a health post built at its Kateshi Estate which is catering for a catchment area of over 6,100.
According to Mr Kanene, the company supplements the Government’s efforts in providing quality health services by supporting the health centre with transport and logistics during outreach programmes.
Josephine Mulabi, a resident, praised NCCL for the initiative to construct a health centre.
Ms Mulabi said local people used to cover long distances to access health services.
Delphister Chileshe, a single mother, thanked the Government for sending a health worker to the institution.
Ms Chileshe said the health worker at the clinic has also contributed to the delivery of quality health services.
“We used to walk over 30 kilometers to go to the nearest health centre, so the coming of the health post has reduced the distance which the community covered to access the healthcare services,” she said.
Owing to the stable conditions of employment, NCCL employees feel that staying longer with the company and being more committed to their work is non–negotiable.
The employees know that they are working for a company that has improved their livelihoods, in addition to affecting their community positively.
Government has demonstrated significant good will to support the growth of the agriculture sector as evidenced by the New Dawn administration’s commitment to increase invests in the agriculture sector.
The Government is making frantic efforts to get more investors to participate in the sector whose potential has not been fully exploited.
The regional administration in Northern Province is pleased with NCCL for supplementing the Government’s efforts in the provision of quality education and healthcare services through infrastructural development in the three districts where the company is operating from.
Northern Province Permanent Secretary Bernard Mpundu said NCCL has been a key partner of the Government’s social economic development agenda.
Mr Mpundu said the Government is grateful to the coffee company for the continued generosity especially in the provision of schools and health infrastructure development in the province.
“As Government, we want to urge Olam through NCCL not to relent in this noble course, observing that the company has positively changed the lives of many vulnerable and marginalised citizens in the province,” he said.
Mr Mpundu assured the coffee company that the provincial administration is ready and pleased to continue partnering with such investors.
“We are pleased to note that although coffee is known to be produced in Ethiopia, Kenya and Tanzania, with this investment, Zambia is now on the map as a large coffee producer and exporter,” he said.
Owing to the critical role the agriculturre sector plays to the prosperity of Zambia, the Government should continue to work with the private sector as it is the only alternative market for the farmers.
It is also evident that for the economy to prosper, the Government should show commitment by supporting the expansion and diversification of an economy through creating a conducive environment that attracts investor-confidence and private sector participation in key developmental programmes aimed at attracting foreign direct investment, job creation and poverty reduction through increased agricultural productivity.
Being the largest coffee estate in Zambia, NCCL offers the largest neighbouring land bank with suitable soil fertility, altitude, topography and adequate rainfall for growing coffee in the country.
With the right investment targeted towards areas with great agricultural potential in the country, there are still tremendous opportunities that exist which can be exploited by both local and foreign investors. – ZANIS.
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