1

A Non-Profit Zambian Organization Facilitating Zambia’s Smallholder Producers Access

To Non-Traditional, Higher-Value Markets

Propelling Zambia’s Rural Economic Take-Off

2

Focus on Enterprise Development and Not Income Generation

Income Generation • Participation in small-scale production and marketing

• Net income does not exceed minimum national wage

• Self-employment that may involve family members

• Natural resource gatherers/subsistence farmers/street vendors

• Stuck in poverty trap with minimal prospects for growth

Focus on Enterprise Development and Not Income Generation

Enterprise Development • Participation in small-medium scale production and marketing

• Net income of entrepreneur exceeds minimum national wage before or after ED intervention

• Salaried employees before or after ED intervention

• Involves use of mechanized equipment or ICT in production process before or after intervention.

• Employees typically earn more than 1 USD a day before or after intervention.

• May create income generation opportunities for small-scale suppliers of raw materials

4

Investment ImplicationsPer Client

Income Generation Enterprise Development

• Usually less than $1,000

• Manual equipment• Usually no

investment in transport

• Usually more than $1,000

• Mechanized equipment

• Investment in transport

5

Support to Producer Cooperative:

Partner: US African Dev, Foundation

Support toProcessor

Partner:Word en Daad

Support toMarketing

Partner: SNV

Value Chain Approach

6

Copperbelt

Examples:Launch of two state-of-the-art irrigation schemes in Kalulushi and Mufulira

Launch of new honey processing company, Kitwe

Establishment of smallholder coffee wet processing mill in Chingola

Groundnuts Marketing Project, Mpongwe

7

Northern

Examples:First time introduction of smallholder milk collection enterprises; Mpika, Mbala

Dairy Processing Support to smallholder milk collection centre, Mpika

8

WesternPartners: USAID, USADF

Examples:New industrial-scale beef processing plant in Limulunga

Expansion of rice processing plant in Mongu

Support to organic rice outgrower scheme in Sefula

9

Benefits of SME DevelopmentExample: ZATAC Total 2003-2010

SME Development • SMEs financed: 117

• Total SME Investments: USD 11,181,355

• Average per SME: USD 95,600

• Project Mgt Costs: USD 2.5m

• Total: USD 13,681,355

• Job Creation:

Permanent 490Smallholder Suppilers 6,183Seasonal 953Total 7,626

10

Future Directions

More integration: TA & Financial Services

Separate Financial Services Mgt

Strategic Partnerships with Commercial Banks & Other Financial Institutions

Intensification of Value Chain Focus

Globalization of EDS