Name of project: pineapple canning factory
Location of project: Mwinilunga district, North Western Zambia. The district has the highest potential for pineapple production in the country.
Promoter: Ministry of agriculture
Project description: There are about 600 farmers involved in growing pineapples in Mwinilunga district with a total hectarage of 453, while 120 farmers in Solwezi district farm a total hectarage of 75 hectares. A lot of the yield go to waste since the collapse of the pineapple processing plant in the 1990s. Currently some pineapple fields have been left unattended due to lack of markets.
Availability of inputs: There are currently 1,420 farmers growing
pineapples on a total area of 1,176 hectares of land, producing 13,752 tons of pineapples annually. Production would be increased if an out grower’s scheme is put in place for the farmers to supply their produce to the cannery when established.
Infrastructure: The presence of a co-operative structure in the pineapple producing areas in form of primary societies proves that a workable system is already in place.
Expectations of the project promoters: To have a canning factory in North Western province to cater for the pineapple produce, thereby creating jobs and profits to sustain the industry.
Available incentives
• Zero percent tax rate on dividends for a period of five years from the year of first declaration of dividends
• Zero percent tax rate on profits for the first five years. For years six to eight, only 50% of the profits will be taxed, and
for years nine to ten , only 75% of the profits will be taxed.
• Zero percent import duty rate on raw materials, capital goods, machinery including trucks and specialized motor vehicles for five years for enterprises operating in the MFEZ
• Deferment of value added tax (VAT) on machinery and equipment including trucks and specialized motor vehicles imported for investment in MFEZ and/or priority sector.
Licences needed:
1. Environmental Impact Assessment (EAI)
2. Manufacturing projects require a manufacturer’s license from local municipalities.
For further information contact the Zambia Development Agency.
Key contact: Florence Mumba
Director: Investment Promotion and Privatisation
Zambia Development Agency
Email: fmumba@zda.org.zm
