Zambeef is a publicly listed company on Lusaka Stock Exchange in Zambia with a current market capitalization of US$134 million. The shareholders include local and international fund managers, pension funds and individuals including the founders, Carl Irwin and Francis Grogan, who collectively hold 4.7%.

The proposed IFC investment is (i) a US$7 million A Loan for the Zambian investment program and (ii) a US$3 million A Loan for the Nigerian project.

10.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	10.0
Equity

* These investment figures are indicative

Zambeef has various farms and butcheries in Zambia from where it operates its cropping, animal husbandry, processing and retailing. The proposed projects will be based on its owned facilities in Zambia. In Nigeria, the Company has leased a 300ha farm from Ogun State Government, 60km north of Lagos, where the project is going to be implemented.

(i) Creation of jobs;
(ii) Increase food supply;
(iii) Improvement in local farmers'' incomes through the purchase of young calves as well as technical assistance;
(iv) Development of an efficient integrated meat supply chain; and
(v) Improvement in quality standard of meat available to retail.

- Support south-south investment;
- Promote private sector development; and
- Provide long-term financing in Nigeria

Since the date of incorporation in June 1994, Zambeef’s vision has been to grow, expand and diversify its business with the aim of being the leading food provider in Zambia and the SADC region. This growth has brought with it a number of Environmental, Health, and Safety and Social (EHSS) issues across the entire group, namely:

Weak controls to minimize environmental impacts and comply with local and international standards,
Food safety issues brought about by weak implementation of Good Manufacturing Processes, and microbiological contamination,
Lack of commitment and capacity to implement corrective action plans,
Hazardous materials transportation, storage, and use, and
Resettlement and relocation issues.

Since engaging with DEG, Zambeef has agreed on an Environmental Action Plan and an Environmental Team structure headed up by the former Zamanita Technical Director has been put in place. Zambeef provided the organogram for its Environment & Technical Services Department, including the associated job descriptions and CVs of the team, to IFC for review. The job descriptions and requirements are comprehensive and specific, and if implemented will address all the shortcomings identified during appraisal. At the time of writing this report, Zambeef reported that an environmental budget to fund the implementation of the DEG proposed action plan was under internal review by senior management. Further, the identified impacts are site-specific and could be minimized and mitigated by well-known mitigation measures and as a result the project has been classified as a Category B according to IFC’s Environmental and Social Review Procedures.