Kalene Hills Fruit Project

The Kalene Hills Fruit Project involves the development and construction of a fruit and vegetable processing company in Mwinilunga District in the Northwestern Province of Zambia. Kalene Hills project will operate under the company Kalene Hills Fruit Company, a subsidiary of the Zambia Fruit Company, wholly owned by the Industrial Development Cooperation. The Project is open for FDI through a minority or majority stake. The estimated cost for the project is ZMW 92.98 million (USD 7.2 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 funded and the IDC is seeking for approximately ZMW 60.4 Million million (USD 4.7 million) to close the financing gap. 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 and is expected to be commissioned in 2022. 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. The site location lies within proximity of the Central Business District (CBD) and sits on 100 hectares of land. The proximal location of the project to farmers who have capacity to supply the required quantities of raw materials (fruits and vegetables); target domestic market and potential export market gives the project a competitive advantage in terms of its assured supply of raw materials and market.

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