Chobe Agrivision

Country: Zambia

Type of investment: Wheat, maize and soy farm

Use of Proceeds: Irrigation equipment, land and ancillary equipment

Financial close: October 2011

Tenor: 5 years + extended by additional 5 years

Type of Investment: Capital Expenditure Financing

S&E Category: B

In October 26^th, 2011, AATIF made its first investment of USD 10m into the Zambian maize, wheat and soya bean farming operation - Chobe Agrivision, which is part of the larger Agrivision Africa agribusiness. Agrivision Africa is a vertically integrated agribusiness focused on cultivating and processing staple food crops in Zambia. The company operates out of two farming hubs, namely Mkushi (Central Province) and Somawhe (Copperbelt Province). While the business started off as a pure grower of maize, wheat and soy it has over the years forward integrated and now includes local processing operations.

AATIF’s investment supports the operations of Chobe Agrivision by increasing its local production and processing capacities thus enabling it to contribute to local food security both in Zambia and in the Democratic Republic of Congo where 15% of its produce is being sold. Further, the investment puts a keen focus on quality employment by providing quality housing to permanent staff, hiring employees from local universities, providing on the job training and further promoting highly skilled employees to farm managers from within its own workforce.

Lastly, a critical component of AATIF's’ funding was the long-term tenor (10 years in total) which is crucial for such farming operations, but often still not accessible through local financial institutions. Patient capital like this can enable farming operations to sustainably grow local production, overcoming periods of drought which are common in this region.

Technical Assistance Project Highlight

School rehabilitation and acquisition of school bus for transport of farmers’ children from Agrivision farm premises to school

Challenge: The Katuba community school had insufficient and run-down facilities to accommodate the number of school children in its catchment area, including those who come from the Agrivision farm premises. The school had no electricity and was regularly flooded during rainy season. School children from Agrivision had to walk three hours (8 km) to and back from school.

TA Project: Co-financing of school rehabilitation and acquisition of school bus for transport of farmers’ children from Agrivision farm premises to school.

Result: Attendance rate and performance of pupils has improved. Number of enrolled school children from Agrivision farm premises – also from neighboring villages – has increased.

Photo credits: Chobe Agrivision