Zambian Blueberries Granted Export Permit to the Lucrative Chinese Market

 

Freshly grown blueberries in Zambia (XINHUA)

By Derrick Silimina

As the world's largest consumer market and also the largest global agricultural importer, it is projected that the total import of goods and services in China will top $22 trillion in the coming decade, according to sources from the Third China International Import Expo held in November last year in Shanghai.

With China's prominence in spearheading key cooperation projects in most African countries in areas such as energy, infrastructure, health and agriculture, and people's livelihoods has seen a marked improvement.

However, access to the large Chinese market is a critical element in the success of most African enterprises keen to export their range of agricultural produce.

Fruitful agrarian cooperation

Zambia's favorable natural conditions for agricultural development, coupled with China's cooperation in this important sector, have already shown signs of success.

Known for its quality blueberry production, Zambia has become the latest African nation to gain access to the Chinese market, where the super-food produce will no doubt be a big hit with the growing numbers of health-conscious Chinese. The export deal marks the culmination of a three-year process after Zambia applied for market access in 2017.

The Zambian freshly grown blueberry export permit to China comes barely two years after another successful story of bilateral cooperation in agriculture, where the export of Zambian honey to China deal was sealed. The honey export protocol was signed by Zambia and China during the Forum on China-Africa Cooperation Beijing Summit held in September 2018.

Although the northern hemisphere still dominates global blueberry production, South American producers and exporters have experienced a rapid rise in exports of this fruit, thanks largely to their access to key markets including the U.S., Europe and China among others.

The northern hemisphere accounts for 84 percent of global blueberry growing area. Of the 16 percent of blueberry hectares planted in the southern hemisphere, Chile and Peru account for some 80 percent, according to a recent published report of the International Blueberry Organization (IBO).

While Zambia is still dwarfed by blueberry producing giants such as the U.S. and Canada, which are vying for markets in China and South Korea, scaling up local production would further expand the industry.

Presently, the whole of Southern Africa produces less than 6 percent of the world's blueberry plantations, according to IBO. There is therefore much potential for Southern Africa to compete with South America on the global blueberry stage.

Zambian farm workers pick blueberries (XINHUA)

Sealed deal

Since Zambia was granted approval to export blueberries to China, all necessary access protocols have been finalized, and the required notice of authority has been issued by the Chinese customs authority.

Having met the stipulated phytosanitary requirements permissible for exports to China, coupled with the concerted efforts of both sides, the Protocol of the Phytosanitary Requirements for Export of Zambian Fresh Blueberries to China between the General Administration of Customs of the People's Republic of China and Zambia's Ministry of Agriculture was signed on September 7, 2020. The Zambezi Berry Co. is now formally listed and can export to China, with its first shipments of Zambian blueberries to leave this year.

Zambian President Edgar Lungu expressed joy that Zambia is the only country in the Southern African Development Community region to have access to the lucrative market for blueberries in China.

"My government is focusing on policy and legislative reforms to educate local farmers on the emerging trends and opportunities in the agriculture sector," Lungu said during the flagging off ceremony of inaugural export of blueberries to China on November 17, 2020. "There is a need for the agriculture sector to be transformed [to become] export oriented in order for the economy to grow."

The Zambian head of state observed that the Chinese market imports a significant quantity of blueberries from countries in North and South Americas, hence was gratified that Zambia was positioning itself to compete for a larger share of the blueberry market in China.

Preferential treatment

The agricultural cooperation between China and Zambia will have a very bright future and as a country receiving preferential treatment, more than 95 percent of Zambian products are granted duty free access to the Chinese market, according to the Chinese Embassy in Zambia.

It is for this reason that Chinese Ambassador to Zambia Li Jie is optimistic that many more Zambian companies will take advantage of the good opportunities and export more high-quality agricultural products to China.

Li said that exporting the Zambian fresh blueberries to China is a milestone for agricultural cooperation between China and Zambia. It will contribute greatly to the promotion of the bilateral economic and trade cooperation and the development of friendly relations between the two countries, said Li.

"I wish therefore to take this opportunity to extend to the Zambezi Berry Co. my best wishes for bright prospects. It is my firm belief that the company will provide quality products to Chinese customers and create more jobs for Zambians," he said during the inspection of the blueberry fields and processing plant located in Chisamba, 20 km north of Lusaka, Zambia's capital.

Zambezi Berry Co. is a joint venture between Zambezi Ranching & Cropping, agribusinesses in Zambia, and the United Exports Group, an innovative market leader operating throughout the agricultural supply chain, from breeding to distribution, focusing primarily on its OZblu blueberries globally.

Zambezi Berry Co., with an investment of $4.5 million, plans to expand up to 500 hectares and become the single-largest standalone blueberry orchards in Southern Africa.

"We are extremely excited about this new opportunity to access one of the largest markets in the world. We are confident that, by maintaining our world-class quality with these world-leading OZblu varieties while significantly increasing quantity, we can successfully compete with some of the biggest global producers," said Zambezi Berry Co. Managing Director Graham Rae.

The beginning of 2020 saw the end of some of the lowest prices of blueberries in years, but recently global prices have indicated a strong recovery with the average price of conventional berries fetching around $8.31 per kg, which is 94 percent higher than in 2019, according to FreshFruitPortal.com. "Zambia is extremely well placed to supply for export into the northern hemisphere during the August-November window and this is a marvelous achievement for Zambia and is expected to be the first of many celebrations, as Africa gains ground in the international blueberry market," emphasized Rae. 

(Print Edition Title: Berry Good News)

Reporting from Zambia

Battery-Powered Growth

© stepmap.de

 

By Derrick Silimina

 

Zambia hopes to cash in on growing global demand for electric vehicles by stepping up its production and refining of cobalt – a key component of lithium-ion batteries used in those vehicles. Zambia’s advantage is its large deposits of copper, of which cobalt is a by-product.

Batteries for electric vehicles are mainly produced in the Far East. But cobalt is indispensable in this manufacturing process. And unlike major cobalt producer Democratic Republic of Congo (DRC), Zambia has the capacity to refine cobalt on a large scale for use in battery manufacturing.

Producing and refining cobalt for electric vehicle batteries can become an important job-creator in Zambia, according to Mining for Zambia, an industry group. Citing research by Benchmark Mineral Intelligence, it says that global demand for cobalt has tripled since 2011 in the battery sector alone.

Further, it predicts that demand for cobalt will reach 190,000 metric tons by 2026 – a more than fourfold increase over 2017 levels. The price of cobalt has risen accordingly, from an average of $18 per pound in 2011 to over $30 by the end of 2017.

The main driver of demand for lithium-ion batteries is growing consumer interest in electric cars. “UNCTAD predicts that some 23 million electric vehicles will be sold over the coming decade,” says a June, 2020 United Nations report on the battery-manufacturing boom. “The market for rechargeable car batteries, currently estimated at $7 billion, is forecast to rise to $58 billion by 2024.”

The report adds that while two-thirds of all cobalt is produced in the DRC, cobalt refining mainly takes place elsewhere – in Belgium, China, Finland, Norway and Zambia. Investing in cobalt production would boost Zambia’s mining and manufacturing sectors. It might also provide an incentive to produce lithium-ion batteries in Africa by shortening supply lines between cobalt refineries and battery-making plants.

Africa currently does not produce electric vehicle batteries. Nor does the continent produce electric vehicles. Several Chinese, Japanese, US and European automakers have assembly plants in South Africa for traditional cars. South Africa is the only country in the region under consideration for investment in electric car assembly plants.

Advocates of adding electric-car assembly lines to existing factories in South Africa say this move would make sense in view of growth in demand for electric cars. They expect that demand will continue to grow in response to environmental restrictions on fossil-fuel burning cars and future dwindling of fossil fuel supplies.

Among the electric-car boosters is Kapembwa Simbao, a member of Zambia’s Parliament and an electrical engineer by training. “There has been a paradigm shift in the transport sector,” he says. “We are witnessing a shift from fossil, diesel and petrol driven vehicles to electric vehicles.” Global carmakers say the same. Toyota, for example, said in 2019 that it aims for half its global sales to be from electric vehicles by 2025.

Derrick Silimina is a freelance journalist based in Lusaka. He focuses on Zambian agriculture and sustainability issues.
derricksilimina@gmail.com

 

Chinese Steel Manufacturers help Upgrade the Construction Industry in Zambia

Willy Mbewe and his co-workers at his metal fabrication workshop in Lusaka (Derrick Silimina)

By Derrick Silimina

Willy Mbewe, 30, from Zambian capital Lusaka's sprawling Kalingalinga Township, is motivated by the fact that through his career in metal fabrication, he can provide a service to the community and country at large, while also creating jobs.

In 2012, driven by his passion for engineering, Mbewe studied metal fabrication at Lusaka Trades School in a bid to pursue his dream.

"I like civil engineering and I thought one day I will become an engineer, so that I could serve my country; because as a nation, while we have many qualified engineers that are doing well, most of them are working outside the country," Mbewe told ChinAfrica.

With the establishment of many Chinese steel manufacturing plants in the country, Mbewe believes that given Zambia's availability of raw materials, local metal fabricators like himself have the potential to add value to the economy by creating jobs.

Metal fabrication is the creation of metal structures by cutting, bending and assembling. It is a value-added process involving the creation of machines, parts, and structures from various raw materials.

Job creation

In 2015, armed with a small nest egg and some homemade equipment, Mbewe started his dream project. Spurred on by his father, a renowned steel expert in the area known for its expertise in metal fabrication, Mbewe established Amoson Metal Welders.

"I started with just K5,000 ($250), a welding machine and a small grinder, but today I have industrial equipment worth over K20, 000 ($1,000), which can do most of the work with ease," he said.

Five years down the line, Mbewe disclosed that he has managed to employ an assistant, as well as two student metal fabricators who are on an industrial attachment at his firm.

Barely five years into his company's operation, Mbewe has managed to build his own house and won major contracts with the Zambia National Service and the Lusaka City Council, among others. "This sector is very important here in the township as it has lifted many youths out of poverty. They are now able to do quality work such as door frames, gates, window frames and sign posts, all made of steel," he said.

In Zambia, just like any other developing country, foreign direct investment in the manufacturing industry is critical for developing any emerging market economy.

In a bid to scale up public investment to address Zambia's infrastructure needs, the government has embarked on a full-scale construction and rehabilitation of roads, houses, medical facilities, schools and bridges, among others, a strategy that is expected to spur socio-economic growth.

Not long ago, steel products had to be imported from other countries; now Zambia has the capacity to produce its own steel, thanks to a flourishing mining sector. This has in turn created jobs at small and medium-sized enterprises (SMEs) such as metal fabricators, whose business depend on steel as a vital raw material.

While local steel manufacturers are seeing remarkable growth, they are also creating employment and primary industries along the way, as individuals and private sector have responded positively to investing in the real estate sector.

Economic experts believe that robust industrial development presents an opportunity for economic transformation and quality employment generation that alleviates poverty in any developing country. It is a fact that throughout history, this exact economic recipe has transformed most European and Asian countries into some of the world's wealthiest nations.

For this reason, through its equipped state-of-the-art facilities and a technically minded local workforce, Good Time Steel, a Chinese steel manufacturing company based in Zambia, is keen to grow its products and services in line with changing industry demands.

"Since Zambia is a good destination for investment due to its conducive political climate, we found it viable to establish our steel manufacturing plant here in 2005. In addition, the country has enough scrap metals [dealers] due to its flourishing mining industry," Good Time Steel Co. Managing Director Jacky Huang told ChinAfrica.

From its humble beginnings, Good Time Steel, which now represents more than half of Zambia's steel production, started full time operations in 2008 with a workforce of over 100; now, it boasts more than 700 workers and is one of the leading steel manufacturing companies in the country.

In terms of local market share, Huang said, "We are number one, with more than 40 percent market [share]. Our production covers a wide range of over 300 products, including pipes, tubes, wire, roof sheeting, aluminium, nails and iron bars, as well as all types of construction materials such as tiles, all under one roof."

Good Time Steel Co. Managing Director Jacky Huang during an exclusive interview with ChinAfrica magazine in his office (Derrick Silimina)

Global market

The manufacturing industry remains one of the vital economic priority areas in the country as Zambian raw materials are in need of value addition. Therefore, investment in this sector helps the country earn foreign exchange, thereby stabilizing the kwacha (local currency).

Previously, many people and companies used to import steel from China, Dubai and South Africa. But with Good Time Steel industrial acumen, consumers have expressed delight over its various competitive steel products on both the local and international market.

"Our market is not only in Zambia, but we also export to neighbouring countries, especially Zimbabwe, Malawi, Burundi, among others," Huang added.

Apart from Good Time Steel Co., Oriental Steel Manufacturing Ltd. is another Chinese manufacturer of steel and plastic products based in Lusaka.

"We manufacture building materials, for example, wire, nails and roofing sheets and also steel products such as beams. We then sell these to the Zambian market, with a focus on wholesale trade. We fabricate products for the local market only, and do not export to neighbouring countries like other steel producers," said Oriental Steel Manufacturing Ltd. Managing Director Li Jinggang.

The steel manufacturing company, which is involved with certain large projects all over the country, does not undertake any construction projects directly, but focuses on manufacturing to supply its partners.

"We supply most of the construction companies, as well as large hardware stores," said Li.

Homebase Steel is one of the renowned local hardware suppliers of steel in Lusaka and depends solely on the Chinese steel manufacturing plants to service its clientele, mostly SMEs, in and out of town.

Meanwhile ZINPRO Engineering Ltd. based in Zambia's Copperbelt Province is an EPCM (engineering, procurement and construction management) company specializing in turnkey construction projects for the mining industry. Steel being one of its critical raw materials in undertaking its fabrication projects to the mines, the company's Operations Manager Wessek Pentz said locally supplied steel is better.

"We rely on the locally produced high grade steel for our work. We also support the local companies as their steel standards and grades are up to specifications and I see no reason to import from other countries," said Pentz. 

Reporting from Zambia

Catch of the Day

© stepmap.de

 

By Derrick Silimina

Confronted by depleted fish stocks in over-fished lakes and streams, Zambia’s government is promoting a long-term solution: encouraging fish farming to increase the supply.

Fish farms consist of tanks or ponds in which fish are bred in large numbers, usually receiving a diet of fortified fish feed. In Zambia, the main aim is to sell the fish as food once they have grown to full size. Some farmed fish are also released into the wild to supplement depleted stocks.

Fish farms can help to close the gap between demand for and supply of fish, according to the Zambia Aquaculture Enterprise Development Project (ZAEDP), a government initiative funded by the African Development Bank. It says demand for fish in Zambia exceeds 180,000 metric tonnes per year, whereas the industry can supply only 85,000 metric tonnes per year due to depleted stocks.

By helping to close the supply gap, a thriving aquaculture industry would reduce the pressure of over-fishing on the country’s natural lakes and streams, ZAEDP says. It would also displace imports with domestic production and create local jobs, both in fish farming and in support services such as cold storage and refrigerated transport, ZAEDP adds.

According to The Fish Site, an aquaculture industry web portal, as of 2018 Zambia was the sixth largest producer of farmed fish in Africa. “Zambia is an ideal candidate for aquaculture expansion, and the industry is growing fast,” writes author Megan Howell in a report titled “Feed and seed: Addressing challenges in Zambian aquaculture”. “The country has numerous natural water resources that can support cage production.”

Fish farming can be environmentally unhealthy, depending on how it is done. For example, accumulation of waste under fish farm cages and changes in the quality of sediment and water can hurt the environment. Nonetheless, Zambia’s government believes the advantages outweigh the risks, and recently allocated the equivalent of $ 6 million to the Aquaculture Youth Empowerment Initiative, a fund aimed at attracting young people to the fish farming industry.

Funding also goes to training fishers in the business aspects of fish farming. Nawa Sindila, a fisher from Lusaka Province, started attending monthly workshops in 2018 on how to run a fish farm. Using land he owns near a stream, Sindila dug two ponds, each 25 by 35 meters and each capable of holding 18,000 fish. “Using what I have learned, I will soon be able to supply bream to chain stores and live my dream of farming fish,” Sindila says.

Equally determined is Samson Njobvu, a fish farmer in north-western Zambia. After ten years as a heavy equipment operator at the Kansanshi copper mine, Njobvu switched to fish farming on a commercial scale in 2017.

“I started on a small scale while still working at the mine,” he says. “With the government’s continued emphasis on fish farming, I realised that the supply shortfall presents a business opportunity for fish farmers. I decided that even I can do it.”

The government wants to see more of this. “We want all the districts in the country to have hatcheries by 2022, so that we eliminate the current fish deficit,” Inonge Wina, vice president of Zambia, said in an address to the Ministry of Fisheries and Livestock.

Derrick Silimina is a freelance journalist based in Lusaka. He focuses on Zambian agriculture and sustainability issues.
derricksilimina@gmail.com