COFFEE II

closed

Unlike the first project which was oriented towards parastatal estate development, the Second Coffee Project will concentrate on coffee development by smallholders, emergent farmers, and commercial farmers. It will be implemented over a seven-year period and comprise: (a) the provision of credit to eligible farmers through the commercial banking system for establishment of irrigated coffee and installation of processing facilities; (b) the strengthening of the Lint Company of Zambia (LINTCO) and the training of its staff in order to improve coffee extension. In addition, the project will provide (c) assistance and training to the coffee research establishment in support of the national Agricultural Research and Extension Project; (d) technical assistance and training to further improve coffee marketing; and (e) assistance to the Zambia Coffee Company Ltd. (ZCCL) to improve its viability and management capabilities. The total cost of the project is estimated at US$34.9 million with a foreign exchange component of $US21.8 million (62 percent). At full development, the project will increase the annual coffee production by about 4,700 tons of high quality arabica coffee primarily for export.