Shangombo Sugar Project

This Project is a collaboration between the Shangombo Town Council and PADIC, and it involves the establishment of the sugar plantation and processing facility inclusive of the solar plant and other services in Shangombo District of Western Province. Sugar production is a high value agricultural industry with significant contribution to the manufacturing sector due to its high value addition, diverse range of products and markets. Other than contributing to GDP through exports, this industry also contributes to employment of permanent and seasonal workers and supports smallholder farmers involved in out grower sugarcane production. Currently, Zambia has 3 main players in this industry namely; the Zambia Sugar as the largest in the market, Kasama Sugar and Kafue Sugar. This project envisions to position itself as the number one sugar producing company in the country through the use of the latest production methods that are environmentally friendly. The project will also complement the existing sugar producers. In terms of the market, there is availability of market for this project both locally and internationally. Angola, Democratic Republic of Congo, Malawi and other countries within the SADC and COMESA region will be among the target export markets. The project will be done in 3 phases with phase 1 involving the setting up of the irrigation system for the seed cane on a 6,000Ha to be done within 4months at $1.4m. Phase 2 at $352.3m will involve clearing the 15,000Ha, purchase of additional equipment and company vehicles, additional seed cane, construction of dams and plantation buildings, feeder roads within the estate and 150Km feeder road from Shangombo to Kalabo, and other services within 16months. Phase 3 at $152.3m will involve clearing the remaining 9,000Ha, additional workers and completion of the solar plant within 12months. This project is open to FDI through a majority stake and the total investment cost is $506m.

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