is involved in the production, processing, distribution and retailing of beef,
pork, chickens, eggs, milk, dairy products, edible oils, flour and bread
throughout Zambia and West Africa.
During the 2010 financial year,
Zambeef finalised a 25 year lease agreement for 287 hectares of farmland in Ogun
State, 60 kilometres north of Nigeria’s commercial capital Lagos.
company plans to use the land to create a central processing and distribution
centre to supply supermarket group Shoprite as well as its own brand of Master
Meat butcheries in Nigeria.
Zambeef has already opened its first store in
Lagos under the Master Meats brand and plans to further expand itsretail
infrastructure in Nigeria.
In Zambeef’s 2010 annual report, its chairman
Dr Jacob Mwanza wrote that the company has completed the procurement of land and
buildings in Nigeria to commence feedlot, abattoir, processing and coldroom
facilities, and own outlets in the West African country.
One of Zambeef’s
main clients in Nigeria is pan-African supermarket group Shoprite. There are
currently only two Shoprite supermarkets in Nigeria but according to Bloomberg
Businessweek it plans to expand the number of outlets to 20 within the next two
Zambeef’s relationship with Shoprite, however, didn’t deliver the
desired results over the past financial year. “With Shoprite increasing its
footprint during the year, it was expected that there would be significant
growth. However, the main store in Lagos has undergone severe challenges due to
access logistics whereby the roads leading to the store were closed for
temporary construction works. Further, the new store that was recently opened
had other factors affecting consumer spending. As such, sales through Shoprite
have declined during the year,” the company’s CEO Francis Grogan wrote in the
The board of Zambeef also approved a US$10 million term
loan financing line from International Finance Corporation (IFC). US$7 million
of this facility will be used to fund the retail expansion and other ongoing
capital projects of the Group in Zambia while US$3 million will be reserved for
expansion in Nigeria.
Zambeef’s West Africa division, which includes its
Ghana operations, currently contributes 3% to the Group’s