Eastern Tropical Fruits Project

The Eastern Tropical Fruits Project involves the development and construction of a fruit and vegetable processing plant in Katete District in the Eastern Province of Zambia. ETF project will operate under the company Eastern Tropical Fruits Limited, a subsidiary of the Zambia Fruit Company (ZFC) wholly owned by the Industrial Development Cooperation. The Project is open for FDI through a minority or majority stake. ETF will cost approximately ZMW 94.03 million (USD 7.3 million) to cover key costs such as land acquisition, project development costs, civil works and construction, working capital requirements, equipment procurement and installation. ZMW 32.5 million (USD 2.5 million) has been secured through IDC, which is now seeking for approximately ZMW 61.5 million (USD 4.8 million) to close the financing gap. The Project is highly profitable and is expected to generate positive operating cashflows with a sustainable 55 to 60% Gross Profit Margin, 25 to 30% EBITDA Margin and 10 to 15% Net Profit Margin. ETF will generate positive free cashflows and have a project payback period of 4 years with a Return on Investment (ROI) of 24%. The IDC has already implemented the procurement process involving the identification, due diligence and contracting of primary contractors for architectural designing works, manufacturing and supply of equipment, civil construction works and project management. ETF site is located about 3 km east of Katete town Central Business District (CBD and covers a total area of 5.4 hectares. The project is expected to be commissioned in 2022.

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