PROJECT

Projects

Summary of Proposed Investment

Project Number

9654

Company Name

Africa Plantations Company Limited and African Highlands Plantations Company Limited

Date SPI Disclosed

Feb 14, 2000

Country

Zambia

Industry

Agribusiness and Forestry

Status

Completed

Sector

Coffee, Cocoa, Tea

Department

Regional Industry - MAS Africa

Environmental Category

B - Limited

Previous Events

Approved : Mar 31, 2000
Signed : May 24, 2000
Invested : Jun 27, 2000

Project Description

SUMMARY OF PROJECT INFORMATION (SPI)


Project Name Zambia - African Plantations

Region Sub-Saharan Africa

Sector Agriculture

Project No 009654

Projected Board Date March 15, 1999


Company Name African Plantations Company Limited and African Highlands Plantations Limited

Technical Partner and/or Major Shareholders
African Plantations Company Limited and African Highlands Plantations Limited (the company) is owned by African Plantations Corporation LDC (APC), a Cayman Island registered company. Significant shareholders of APC are New Africa Investments (43%), Silver Holdings (19%), and MADA Limited (10%). The principal individual shareholder is Thomas Kaplan, a US national, who has a 47% shareholding through New Africa Investments and in person.

Project Cost Including proposed IFC investment

The project is estimated to cost US$8.5 million and IFC has been requested to provide a loan of US$2.5 million.

Location of project and Description of site

The project is located in the Northern Province of Zambia, near Kasama and Mbala towns.

Description of Company and Purpose of Project

The company operates three coffee estates; Kateshi, Ngoli and Isanya, which currently have a total of 1,280 ha of coffee. In the next two years an additional 344 ha of new coffee will be planted and 215 ha of the remaining old coffee replanted to complete the company’s planned 1,624 ha coffee plantation development. Kateshi and Ngoli Estates, owned by African Plantations Company Limited, were failed government plantations acquired by the sponsor in 1996. Isanya, owned by African Highlands Plantations Limited, was a private mixed farm.
The project will result in the following direct benefits; (i) securing existing jobs at the company, the private largest employer in northern Zambia, and creation of about 100 additional permanent jobs and at least 2000 seasonal jobs; (ii) increase in economic benefits to northern Zambia, a largely under-developed region; (iii) demonstration effect of successful coffee cultivation in northern Zambia, a region whose excellent conditions for coffee cultivation have not been exploited; (iv) generation of foreign exchange earnings for the country in the medium to long-term; and (v) skills transfer to locals. (vi) The project will also assist the success of Zambia’s privatization program by completing the redevelopment envisaged by government when ZCCL was privatized.

Environmental Category and Issues

This is a Category B project according to IFC''s environmental procedure. Environmental, health and safety issues analyzed with respect to the plantations included selection, handling, application and disposal of agrochemicals; integrated pest management; provision of protective equipment and employee training; regular medical check-ups for employees handling agrochemicals; and agrochemical container disposal. Key issues analyzed regarding irrigation systems included source and volume of water supply; impacts on riverine hydrology; potential loss of grazing land and wildlife habitat if applicable; impact on fisheries and subsistence fishing if applicable; minimum flow maintenance and impacts on downstream users; increased waterborne diseases; restoration of land disturbed during rehabilitation and construction; and worker safety during construction. The issues analyzed with respect to processing plants included power supply including fuel storage if applicable; emissions from boilers and other sources; workplace hygiene and housekeeping; provision of personal protective equipment and employee health and safety training; solid and liquid waste disposal; and fire protection/ life safety. IFC prepared a detailed Environmental Review Summary (ERS) for the project, which was made available through the IFC InfoShop on December 17, 1999. The sponsors have made the ERS available for public review in Kasama and Lusaka, and a notice was published in the Times of Zambia on October 18 and 19, 1999, announcing the availability of the ERS for review.

Host Country location of African Plantations Company limited, environmental documents Kasama.

Date SPI sent to InfoShop February 14, 2000

“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”

For additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).

Sponsor / Cost / Location