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Zambeef Products shares jump on USD100 million expansion plans

Thu, 16th Jun 2022 11:46

(Alliance News) - Zambeef Products PLC on Thursday said it has agreed on a USD100 million expansion strategy over the next three to five years.

Shares in the Zambia-based cold chain foods and retail company were up 13% to 7.75 pence each in London on Thursday morning.

The company said that the investment strategy will increase its value chain capacities and develop the Zambian economy through job creation, increased tax revenue, and supporting ancillary businesses.

Further, Zambeef added that the strategy is expected to double the Zambeef Mpongwe Farm row cropping capacity. The first crop is expected to be planted in the winter of 2023, it said.

"This investment is proof of the company's commitment and belief in the country's ambition of becoming the regional food basket," Zambeef said.

The first investment under the new strategy is intended to commence imminently, with Zambeef expecting to spend USD10 million by September 30.

Zambeef said that the funding will be generated from its operations and new debt facilities, to be agreed in due course. The first investment will be funded from financial year 2022 cashflow, it added.

Chair Michael Mundashi said: "The last two decades have seen the group significantly grow in the scale of our operations and I am excited at the next phase of growth. The management team is elated, and I am confident in their capacity to deliver the projects quickly and effectively.

"At this time there is no certainty in relation to the availability of debt funding for this investment strategy, and the company will make further announcements in relation to funding and execution of the investment strategy in due course", Mundashi added.

By Sophie Rose; sophierose@alliancenews.com

Copyright 2022 Alliance News Limited. All Rights Reserved.

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