Africa: The next frontier for cryptocurrency

By Mbuyoti Silimina

Africa is going through a monetary revolution never seen before and has become a fertile ground for digital transactions.

Consumers and businesses around the world are using cryptocurrency, a form of digital or virtual currency, more than ever before. This has partly been influenced by the proliferation of affordable virtual investments as a way to make a quick buck. Much of the interest in these unregulated currencies is to trade for profit, with speculators at times driving prices skywards.

Top cryptocurrencies include Bitcoin, Litecoin, Ethereum, Dogecoin, Dash and Monero, but Bitcoin leads the pack in Africa and the rest of the globe. Created in 2009 by a person or people with the alias Satoshi Nakamoto, investors hope Bitcoin becomes a major mode of financial transaction in the digital age. 

African countries including Zambia have widely adopted alternatives to traditional banking in the form of mobile money platforms including Zoona, Kazang, MTN Mobile Money and Airtel Money. Some entrepreneurs are of the view that the local money market is ripe for the wide adoption of cryptocurrency because of this.

In many African countries including Kenya, Nigeria, Egypt and South Africa, cryptocurrency is growing in popularity as more people see it as a lucrative investment with high potential returns.

An online survey by a data platform Statista found that 32 percent of Nigerians use cryptocurrencies – the highest proportion of any country in the world. Estimates show that of the top 10 countries for trading volumes, Nigeria ranked third place after the US and Russia in 2020, generating more than US$400 million worth of transactions.

Some observers describe cryptocurrency as a disruptive innovation, one that could flourish in Africa, under the right circumstances. However, cryptocurrency is not without its challenges. Firstly, cryptocurrencies are not legal tenders. Having said this, in June 2021 El Salvador became the first country to adopt Bitcoin as a legal tender, with the change to come into effect in 90 days of the adoption. One can’t help but wonder when or if other countries will follow suit.

In 2018, the Bank of Zambia clamped down on cryptocurrency-related businesses, days after declaring that it does not view digital currencies such as Bitcoin as legal tender. The crackdown began when the central bank announced an investigation into Heritagecoin Resources Limited for alleged money laundering. The Lusaka-based FinTech startup that dealt in the business of cryptocurrency faced allegations that it had taken on traditional banking activities, such as accepting deposits from clients, something it was not certified to do.

Many people in Zambia are desperate for cash and have fallen prey to scams by firms that invite them to invest cash with the promise of high returns. Therefore, if one is thinking of investing in cryptocurrency, it’s important to be as well-informed on the topic as possible to better avoid falling prey to scams.

Recently, BoZ said that although Bitcoin and other cryptocurrencies retained “some monetary characteristics, such as, being used as a means of payment on a person-to-person basis, cryptocurrencies are not legal tender in Zambia.”

In neighbouring Zimbabwe, the central bank also used its authority over commercial banks to shut down cryptocurrency markets.

With the continued depreciation of the kwacha and other African currencies, caused by a number of factors such as rising debt, dwindling foreign exchange reserves and lack of investment in the manufacturing sector, cryptocurrency becomes more appealing.

Zambia has experienced a slowdown in economic activity over the years. In this context, financial analysts say digital transactions through platforms such as eWallet, e-Pay and mobile money is the way to go.               

As economic shocks continue to affect Zambia’s inflation, employment figures and national debt among other factors, the Private Sector Development Association (PSDA) believes that the main challenge of adopting cryptocurrency in Africa is who decides the value of the currency.

“If you look at mobile money applications, money transfers and digital payments, these are bound by physical currencies in respective African countries, so nobody can really manipulate them and that’s why if I do an Airtel Money transfer to you of say K500, I know that I have not made the money, you haven’t either – it’s simply shifting real money from my account to your account,” PSDA Chairperson Yusuf Dodia told Nkwazi.

Dodia further stressed that despite cryptocurrency innovation being of the future, somebody decides whether that money should exist or not. It can easily be manipulated and that’s where the danger is. Furthermore, cryptocurrency is currently not supported by the international monetary and banking system.

Investment experts contend that for digital money to thrive easily in any African nation, prudent economic management of its natural resources is key. They refer to the success story of cryptocurrency in Egypt and South Africa where both nations do not allow their natural resources to be exported without the equivalent US dollar coming into their banking system.

Economists agree that the Zambian market is not yet ready for a cryptocurrency revolution as there are still information gaps in terms of policies on virtual currencies, what cryptocurrency is, how it operates, what it can do and what it cannot do and so on.

“Many people in Zambia tend to hold an opinion that it is just one of those pyramid schemes because of the way it has been marketed. For instance, you are enticed to buy cryptocurrency now and told that after three weeks, the value would have doubled and you wonder how will it double? What economic activity is backing this currency? Because money, whether it be virtual or actual, must be backed by production,” Lusaka-based economist Mambo Haamaundu says.

He continues, “Money is the store of value and if I am storing value, how does my value double within a short period of time. When you deposit money in a bank you earn interest but in a cryptocurrency setup the gains are often said to be ridiculously high. The question is, what is it that really happens to this money for it to appreciate to 30 percent within a month?”

While cryptocurrency is a complex topic and not without its risks it is here to stay for the foreseeable future. If managed properly it can be a force for good and in several developing countries it is used as a tool for financial inclusion and a supplement to the traditional banking sector.

FQM Invest in Cutting-Edge Mining Equipment

By Derrick Silimina

KALUMBILA Minerals Limited (KML), a subsidiary of First Quantum Minerals (FQM), says the mining firm’s quest to invest in cutting-edge equipment will boost copper production by about 15 percent.

Speaking during a familiarization tour of its recently acquired In-pit copper ore crusher, a state-of-the-art mining machine, KML Project Manager for CR4 Pocket Construction, Albert Jonah said investment in the in-pit crushers is a milestone achievement as they are not common in the world.

Mr Jonah, a mining engineer, noted that the mega mining paraphernalia is worth over US$50 million each, adding that the mining giant has invested four in Panama and four at its Sentinel Mine in Kalumbila district of North-Western Province.

He therefore affirmed that for this reason, copper production at Sentinel Mine will go up by 15 percent by 2022, hence the need to procure another in-pit ore crusher.

“By 2022, our copper production will be up by 15 percent, and as the pit is expanding towards the east, this latest crusher will play a vital role as more ore gets exposed on the eastern side of the pit. These crushers will be relocated as the pit expands to optimise the mining process,” Mr Jonah noted.

KALUMBILA Minerals Limited Project Manager for CR4 Pocket Construction Albert Jonah explains the effectiveness of the In-pit ore crushers at Kalumbila Open pit mine. – Picture by Derrick Silimina/SUMA SYSTEMS.

With a capacity of 7,000 tonnes per hour translating into about 150,000 tonnes production per day, double the size of the first three crushers on-site, the project manager bubbled with confidence that the masterpiece is an awesome investment in the country’s mining history.

“This In-pit crusher is the fourth we’ve got at Sentinel Mine, which is, more or less, double the size of the first three that are in operation. We started the pocket construction of this new crusher in December 2020 and total completion is likely to be at the end of July this year.”

Mr Jonah stated that in-pit ore crushers reduce the mine’s haulage costs which saves the mining operations in the long run as compared to top-off pit crushers as the rest of the haulage is done by conveyor belts towards the plant.

He stressed that the installation of each in-pit crusher came at a huge cost as the latest gear has so far consumed about $2 million in the pocket development cost. In terms of assembly of the massive unit, the facility requires about 150 personnel that are doing the project works for a period of six months.

Investment in such high-tech mining equipment facilitates the transfer of technology among the local mining staff as the assembly and installation of the machinery is being done by in-house personnel.

“We’ve got a local project team that’s working on this fourth crusher as they have learnt from international contractors that were brought in during the installation of the first three crushers. I think it’s vital for local staff to know dynamics of such technology as this achieves better control of the facility and is cost effective.”
Regarding the lifespan of the in-pit crushers, Mr Jonah confirmed that the mining apparatus can stand the test of time and even up-to the end of the mining lease.

“For as long as we do maintenance works on them, the life of these crushers goes up-to the end of mining operations."

The Mandarin Road to Success

© stepmap.de

By Derrick Silimina

 

As Africa’s population grows, many young people have trouble finding jobs. More than 15 million Africans aged 15-24 are unemployed, representing 13.5% of that age group, according to the policy-oriented Mo Ibrahim Foundation. That percentage is more than twice the unemployment rate of Africans aged 25 and over (6.1%), showing that joblessness hits young people the hardest.

There is, however, a ray of hope for the unemployed: learning the Chinese language, and especially its main variant, Mandarin. In Zambia, as elsewhere in Africa, learning Chinese is catching on as a way to escape unemployment.

In Zambia, the blossoming relationship with China began more than 50 years ago and has boosted the economy considerably. Today about 1,000 Chinese companies have a presence in Zambia, in sectors including manufacturing, retailing, agriculture, infrastructure, health and education.

However, a language barrier between Zambians and Chinese can make communication bumpy. While China makes efforts to train its people who have dealings in Zambia in the official local language, English, language barriers remain – particularly in parts of Zambia that use one of the country’s seven official vernacular languages.

The language barrier has created a need for Zambians who can communicate with suppliers and headquarters personnel in China. With the cooperation of Zambia’s education officials, China is promoting Mandarin language skills in Zambia through the Confucius Institute, a government-funded partnership between Chinese universities and universities in other countries.

The Confucius Institute in Zambia enrols more than 80 university students per semester in its courses. It offers six levels of instruction in afternoon and evening classes. This instruction responds to a clear demand, says Zhang Run, deputy director of the Confucius Institute at the University of Zambia. “We receive calls every day from Chinese companies in Zambia looking for employees who can speak Chinese,” he says.

In addition to offering university-level courses, Zambia’s government has signed an agreement with the Confucius Institute to provide Chinese instruction at junior and senior secondary schools. The Teaching Council of Zambia, an educators’ group, welcomes the move. “This will bring value to the country's education system,” says Council Registrar Ebby Muganga.

Many Zambian graduates have found jobs as interpreters in Chinese-owned companies. Others have been hired as human resources managers, secretaries and line executives liaising with headquarters. “I am grateful to the authorities who made it possible for me to learn Chinese,” says Thandiwe Chaaba, a secretary at Hongsen Investment Ltd., a Chinese firm with a factory in Lusaka's Industrial Area. The Hongsen plant recycles plastic bottles into other wares such as dishes, cups and buckets. Chaaba serves as liaison between her Chinese employers and local clients and workers.

Zambian wholesalers and retailers – just like local employees of Chinese-owned companies – also find it useful to speak Chinese. One example is Memory Tembo, the 30-year-old owner of a small retailing business in Lusaka. She has enrolled at the Confucius Institute at the University of Zambia, hoping to deal more effectively with her Chinese suppliers. “Any transactions with my Chinese partners will be easier without a language barrier,” she says.

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

Chinese Firm Breathes Life into Ventilator Supply in Zambia

 

A medical worker receives the COVID-19 vaccine in Lusaka on April 14 (XINHUA)

 By Derrick Silimina

The onset of the coronavirus disease has created a shortage of oxygen gadgets and medical ventilators worldwide. 

In the face of rising COVID-19 cases, countries have rushed to procure medical supplies, such as ventilators or high-pressure oxygen cylinders, in a bid to deal with the disease.

In Africa, the shortage of oxygen is even more severe, and there is urgent need of medical devices that are easier to use, so that different methods of generating oxygen locally at hospitals, including at provincial and district-level hospitals, can be adopted. 

According to the World Health Organization, some 80 percent of people with COVID-19 recover without needing hospital treatment. In the severe cases, medical experts have noted that the virus causes damage to the lungs, leading to a drop in the body's oxygen levels and making it harder to breathe. To alleviate this, a ventilator is used to push air, with increased levels of oxygen, into the lungs. The ventilator also has a humidifier, which adds heat and moisture to the air supply so it matches the patient's body temperature.

Inadequate resources 

In Zambia, lack of capacity to manage critically ill patients with COVID-19 has raised questions about the country's preparedness to deal with the pandemic. The use of advanced technology in the health sector is vital to embark on a vigorous battle against the pandemic.

Theresa Katuna, a COVID-19 survivor from Lusaka's Chawama Township, had wondered if she was going to stay alive after being infected with the virus.

"When I was admitted to the COVID-19 isolation center early this year, I noticed that lack of adequate ventilators hampered the delivery of quality health care to patients who needed to access the ventilators on time," Katuna said, adding however that local medical personnel were really committed to doing their level best to fight against the disease.

In his article titled View From the Hospital Window that recently went viral on social media, renowned journalist Gerald Mwale recounted the dreadful realities of the global pandemic from his bed at the Levy Mwanawasa Hospital in Lusaka where he was being treated for COVID-19.

"I am gazing at this beautiful scenario from my hospital room, where I have been admitted the last two days. I am in the COVID-19 section of the hospital. I am feeling much better than I was two days ago when I was brought in. It all started with a rather irritating sore throat, then a tightness in chest, followed by labored breathing," Mwale narrated on his Facebook page few days before he died.

About 880,000 ventilators are in demand globally amid the pandemic, with the U.S. in need of 75,000 ventilators, while France, Germany, Italy, Spain and Britain are together short of 74,000, according to GlobalData, a data and analytics company.

The shortage of ventilators and intensive care capacity on the continent has been a significant limitation in saving critically ill patients from untimely deaths.

"I caught COVID-19 in the week of March 14, probably at one of the lodges due to a crammed training room. Make no mistake: COVID-19 is a horrible disease. Let us not drop the ball, not even for an iota of a second, in our fight against this disease," renowned Lusaka economist Chibamba Kanyama said. "This is a horrible disease that paralyses you in every way it can, to the extent recovery seems an impossibility. Brethren, keep your guard, protect others and be vigilant the way we wade off the devil."

According to the Ministry of Health, Zambia has recorded 89,592 cumulative COVID-19 cases as of early April, with 1, 225 deaths.

Camco Digital Marketing Officer Mweemba Mweemba demonstrates the operation of medical gadgets in Camco's showroom in Lusaka (DERRICK SILIMINA)

Chinese supply 

China, a major manufacturing hub for medical supplies, has become the source of supply for many countries across the globe as confirmed cases have skyrocketed globally.

Chinese ventilator manufacturers have ramped up production to expand supply of the medical gadgets to other countries, especially developing nations, as demands from abroad surge.

In Zambia, a local Chinese company has joined the country's fight against the global pandemic.

Distinguished for its supply of state-of-the-art agriculture, mining and construction equipment in the Southern African country, Camco has come up with Zambia's first-ever oxygen concentrator to help improve the country's capacity to treat COVID-19 patients.

With its affordable brand of HK series oxygen concentrator, the firm supplies hi-tech products which are researched and developed by Beijing Gaoxin Huakang Technology Co.

"This equipment is specifically designed as a product for both hospitals and clinics as well as individual buyers. It is very affordable and easy to operate as it is equipped with a manual guide," Camco Digital Marketing Officer Mweemba Mweemba told ChinAfrica.

Mweemba stressed that the unique medical kit which can also be used by individual patients at home is one of its kind in the health sector.

Medical experts have since described this technology as a huge milestone in the country's pursuit of self-reliance in medical engineering and the industrialization agenda.

Certainly, available evidence supports prioritizing investment in oxygen infrastructure, not only for COVID-19 cases, but also for other severe acute respiratory infections that are claiming lives.

Medical donations 

Meanwhile, the Chinese Government recently donated more medical equipment to four major hospitals in Zambia to help the country tackle the second wave of the COVID-19 pandemic.

The donations include ventilators and other equipment meant to prevent and manage the pandemic.

Chinese Ambassador to Zambia Li Jie said China decided to make the donation following the outbreak of the second wave and the urgent call to respond to contain the outbreak.

"We are hoping that the equipment will go to the places most in need and we would also like to see that Chinese experience could be used in this process of prevention," the Chinese envoy said.

Receiving the donation, Zambia's then Health Minister Chitalu Chilufya acknowledged that the country was facing challenges brought by COVID-19, but was quick to state that the good leadership and support from cooperating partners like China will enable the country to overcome the challenge.

He said that the donation was timely as it came during the time of the second wave which was severe and has resulted in many patients requiring oxygen.

Reporting from Zambia

Coments to: derrick.silimina@gmail.com

Think local, Buy local

© stepmap.de

By Derrick Silimina

 

As economic conditions worsen under the impact of the Coronavirus pandemic, Zambia is looking for ways to boost domestic industries.

In February 2021, Zambia’s Agriculture Ministry restricted imports of onions and potatoes into the country, saying local farmers can meet the demand for the two vegetables. The ruling affects companies such as South African-owned supermarket chains that operate in Zambia and import vegetables from South Africa.

The import restriction “is in line with the presidential directive to prioritise and promote consumption of locally produced fruits and vegetables,” Songawayo Zyambo, permanent secretary of the Ministry of Agriculture, wrote to the Zambia Revenue Authority, which enforces import restrictions at the country’s borders.

Zambian potato and onion farmers naturally were delighted. Calvin Kaleyi, spokesman for the Zambia National Farmers Union, noted that such import restrictions protect domestic jobs and improve the nation’s trade balance, thereby supporting the nation’s currency.

“We implore the Ministry of Agriculture to remain resolute in its policy implementation,” Kaleyi said. “Regulation of imported agriculture products should go beyond onions and potatoes and include all commodities in which we have a comparative advantage as producers.” Less vocal were consumer groups, whose constituents are likely to pay higher prices whenever competitors are excluded from a market.

Farmers are not the only beneficiaries of policies favouring domestic producers. In his 2020 “State of the Nation” address, President Edgar Lungu said government agencies and consumers should give preference to local products. He praised the “Proudly Zambian” campaign, a government-initiated programme that encourages consumers to buy products labelled as made in Zambia.

According to the Ministry of Commerce, Trade and Industry, 500 product types made by 33 companies have so far been certified to use the “Proudly Zambia” logo. The government and Zambian manufacturers say that, in addition to certifying that a product is local, the logo confirms that a product meets certain quality standards.

The “Proudly Zambian” campaign “creates a ready market for local producers and also employment opportunities for more of our people, particularly the youth,” President Lungu said at the start of the “Buy Zambian” exposition last November. The event showcases Zambian-made goods and services.

He added that more local companies should strive to meet the requirements of the “Proudly Zambian” logo. “I urge you to continue improving the quality and packaging of your products so that they meet these standards,” Lungu told the conference.

The Zambia Association of Manufacturers (ZAM), a trade group, works toward boosting quality standards of products made in Zambia. It also encourages companies to change production processes to add more value inside Zambia. A key to success is persuading consumers to prefer products with significant local content, says ZAM President Ezekiel Sekele.

“The ‘Buy Zambian’ campaign can succeed when people start to ‘think local’ first,” Sekele says. “I encourage consumers to think Zambia first, buy local products, help promote the growth of the Zambian manufacturing sector and keep our people in employment.”

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

New homes for orphaned children

© stepmap.de

 

By Derrick Silimina

 

Zambia has launched a pilot project to return orphaned or abandoned children to their own extended families or to new foster homes, in an effort to re-integrate them into normal families.

The government-approved project is run by Catholic Care for Children in Zambia (CCCZ) at two of its facilities – St. Martin’s Children's Home in the Copperbelt province in the north and Lubasi Home in Livingstone in the southwest. So far, 48 children have been placed in families since the programme began two years ago. Another 12 are being prepared for transfer by the end of this year.

If successful, the transfers could be used as a model for more of the 8,335 children living in Zambian orphanages. Some are there because their parents died and no other family members were available to care for them. Others went to orphanages because their parents could not support them.

The pilot project looks for families – including the children’s own extended families – who are willing to take the children in. It then prepares the way for a successful reintegration, offering financial and other support to the host families.

“We assess whether the children will be embraced back and whether they are ready to be reintegrated,” says CCCZ project coordinator Sister Cecilia Nakambo. Support activities include drawing up the needed documents, preparing children to bond with their new families, and giving the families money for food, school fees, clothing and transportation.

In a second phase after children are placed, CCCZ will follow up with the host families, providing ongoing counselling as needed. In addition, the project trains staff at the two orphanages to support children in the transition. “We have carried out trainings such as case management, reintegration, trauma counselling and basic qualification to care for children,” Sister Nakambo says.

The children themselves receive extensive counselling. “We have counselled children against the effects of mental stress, and most of them are now coming out of the trauma they had been through,” says Charity Shaba, a senior psychosocial counsellor from Zambia’s Ministry of Community Development and Social Welfare.

The pilot project is being watched closely by other orphanages in Zambia. As the Coronavirus pandemic takes a financial toll, some institutions are considering similar reintegration programmes. One of them is the Home of David and Faith Orphanage, a privately run child care facility in Lusaka.

“We depend on well-wishers to feed and clothe the children in our care,” says manager Joe Mwikisa. “With Covid-19 effects, many of our funders are down financially. For this reason we feel child reintegration is the way to go.”

The government backs such efforts, as long as transfers are done responsibly. Transferring an institutionalised child to a family setting can mitigate the effects of having been orphaned or abandoned, says Shaba of the Social Welfare Ministry. “I feel that reintegration will help children to find their own family identity and discover who they are as individuals,” she says.

In a way, re-integrating orphans into communities is in line with age-old African cultural norms, under which children are raised by extended families and clans. In Shaba’s words, “what these children know so far is caregiver institutions; to them that is a normal way of life. In the near future, we will have family set-ups, which will be better.”

Zambia Raises Production of its Second-Largest Crop

 

Zhongkai International Chief Executive Officer Chen Guiping refuels ethanol in containers ready for sale - Pictures by Yoti Graphix

By Derrick Silimina

A humble tuberous starchy root that ought to be cooked properly and eaten safely is gaining attention for its commercial use.

Once considered as a poor man's crop, cassava is Zambia's second-largest agricultural produce after maize. Unlike maize, however, it does not require a lot of water - a big advantage in the drought-prone country.

Cassava is now grown by about half a million small-scale farmers in Zambia as part of a push to diversify agriculture beyond maize, the country's drought-vulnerable staple. It is estimated that annual cassava production saw a rise of over 6 percent in the last five years, according to the Ministry of Agriculture of Zambia.

But most of the cassava farmers are struggling to sell the commodity to nearby villages or urban areas due to a volatile market and poor road conditions.

Amos Nsama, 52, is a cassava farmer from Kasama District in Northern Province of Zambia and has over the years found it difficult to sell his cassava produce due to numerous hurdles.

"I first started cassava production while living in Luapula Province; but lack of demand for cassava forced me to move to Northern Province in search of a lucrative market," Nsama said. "I owned oxen, an ox-cart and a plough. But lack of market in the area discouraged me to produce on a large scale as the produce would sometimes go to waste."

Ruth Chitambo is another cassava farmer and trader who started her agribusiness in 2015 by supplying cassava to Lusaka's sprawling Soweto market. But low profits from the commodity have slowly dampened her morale to cultivate the root crop despite its massive value to the country's food security and industrial development.

"With the hard economic times, consumers are not buying as much cassava as before. As a result, it is negatively affecting my business as this is my only source of income," Chitambo complained.

New markets

While household demand for cassava has been stagnant over the years, industries are coming up with sustainable means of producing their goods using agricultural goods. Cassava is one of their major raw materials.

The government and development organizations have since launched efforts to find new markets for the tuber, in hope that more of it will be grown to raise agricultural income countrywide. These efforts are paying off, and the solution is coming from an unexpected source: manufacturing.

With the onset of COVID-19 pandemic, notable by-products made from cassava such as ethanol that is used for making hand sanitisers have created a large demand. Other uses include stock feed and flour to prepare food and beer.

This new demand is creating jobs for intermediaries between farmers and industrial manufacturers in Zambia.

One manufacturing firm that is adding value to the cassava produce is Zhongkai International, a Chinese-owned multi-million-dollar company with a plant in central Zambia.

The Chinese manufacturing plant uses cassava as its major raw material to produce various by-products, including ethanol, for industrial use, glue and feed for livestock, which benefit many cassava farmers.

"Our final product is ethanol and that is why we need this crop (cassava). For instance, the cassava from Mansa District has 75 percent starch and we found out that the best cassava in Africa comes from Zambia," Zhongkai International Chief Executive Officer Chen Guiping told ChinAfrica. "Before setting up the factory, we visited all African countries and found that the produce in Zambia had the highest starch percentage; so, we established the factory in this country."

Chen disclosed that his company uses about 200 tons of dried cassava, and that from just 1 lima (0.49 hectare) of land, a farmer can easily raise about K5,000 ($231) cash that can go a long way in supporting their livelihood.

Amos Nsama (right) one of the suppliers of the commodity to Zhongkai International, a Chinese owned firm in his cassava field

Game changer

Arguably, the new industrial demand is gradually encouraging more farmers and traders to expand their operations.

Entrepreneur Monica Chanda buys dried cassava from farmers in northern Zambia for resale in bulk to Zhongkai International. "While they (farmers) concentrate on producing cassava, I focus on dealing with my industrial clients," said Chanda.

Meanwhile, in the midst of climate change, agricultural experts have recognized cassava as one of the cash crops which has potential to create wealth for farmers in the Southern African country prone to annual droughts, while at the same time enhancing national food security and adding value to industrial production.

"I heard about companies supporting cassava farmers and decided last year to buy farmland and produce cassava," said Kelvin Chilwalo, a cassava grower from Gwembe in south Zambia. "Since cassava is drought-resistant, I believe it will do fine here. I expect to harvest more than 100 bags of 50 kg each and supply to both local and industrial markets."

Other notable commercial entities utilizing cassava include Zambian Breweries, a local firm that is also a major bottler for Coca-Cola, which has signed contracts to buy large amounts of cassava. The company procures dried cassava chips from small farmers, processes them into flour and fermented cassava starch, and uses these as ingredients for its Eagle Lager beer.

Zambian Breweries needs to ensure a continued supply of cassava. It has contracted 5,000 farmers to grow on average 1 hectare of cassava each.

Premiercon Starch Co. is another local start-up firm producing starch and flour from cassava. Among other products, it turns cassava into a starchy feedstock that it sells to mining companies, which in turn use it to process minerals. The company has signed agreements with copper mining companies to supply 7,000 tons of industrial starch per year.

Recently, Zhongkai International signed an offtake agreement with Chifwani Concepts, an initiative launched by Zambia's Ambassador to Ethiopia Emmanuel Mwamba to raise cassava production in north Zambia.

Speaking during the signing ceremony, Mwamba said the partnership is taking place at a time the government is focusing on widening the food basket beyond maize.

"Cassava has been grown as a staple food; but the commercialization of cassava has helped us promote this cash crop under the Chifwani Concepts," Mwamba said.

Chifwani Concepts has so far empowered over 1,500 small farmers by providing cassava cuttings.

"The partnership we are launching today is first of all in line with what government is doing. The government has focused on crop diversification and job creation and we are shifting from mining to other sectors such as agriculture and manufacturing," Mwamba stated. CA

Reporting from Zambia

Cassava is now grown by about half a million small-scale farmers in Zambia as part of a push to diversify agriculture beyond maize, the country's drought-vulnerable staple

By Derrick Silimina VOL.13 APRIL 2021 ·2021-03-26