FRIDAY 13TH NOVEMBER, 2009

The Guest of Honour, Hon. Felix Mutati MP., Minister of Commerce, Trade and Industry
Ministers of various ministries present
Permanent Secretaries present
The Zambia Development Agency delegation with us
The delegations from the Securities and Exchange Commission and the Lusaka Stock Exchange
Members of the Zambeef Products PLC Board present
Managing Directors of various companies and our bankers present
Invited guests from various institutions

It gives us great pleasure that incentives under the ZDA Act are not limited to investments by foreign companies only but are available to Zambian companies which are involved in qualifying investment projects.

We are pleased to confirm that in Zambeef’s 2008 Financial Year, the Group invested K296bn (approximately US$78m) into the Zambian economy.

During the 2009 Financial Year, the Zambeef Group of Companies has invested a further K138bn (approximately US$26m). Some of the notable projects invested in include:

1. CHIAWA FARMS
   Zambeef Products PLC acquired Chiawa Farms in the Zambezi Valley in February, 2008. Since acquiring the farm, the land under irrigation has been increased from 960 hectares to 2,200 hectares for the coming summer crop. The total investment to date is US$21m and the potential exists to develop a further 1,500 hectares of irrigation.

   This takes the Zambeef Group of irrigation farming land to 4,900 hectares making Zambeef one of the largest row cropping operations in Africa.

   More importantly, Honorable Minister, invited guests, ladies and gentlemen, the Zambeef’s Chiawa Farm and Sinazongwe Farm have a unique climate whereby winter maize can be commercially grown. What this means for Zambia is that if there is ever a serious summer crop failure as has happened in Kenya this year, Zambeef can grow 40,000 tonnes of winter maize, giving the country a strategic reserve of 40,000 tonnes of maize. I do not think there is another country on the continent which has such a strategic maize reserve.

   In addition, what is important about these projects is that Zambia is blessed with huge water reserves. Throughout the world, water is becoming a more and more scarce and valuable asset. Zambeef is providing long term sustainable development through utilizing Zambia’s water resources instead of allowing these valuable resources just to flow into the Indian Ocean.

   
   

2. STOCK FEED PLANT
   Zambeef Products PLC will start producing stock feed in its brand new state-of-the-art stock feed plant by the end of the year. Zambeef will have invested around US$8m in setting up a fully automated world class stock feed plant which will take the stock feed industry in Zambia to a new level.

   Our stock feed will be sold under the brand name Novatek and will be available to the general public. This will provide both Zambeef and the public at large stock feed of the highest standard using the latest First World technology.

   We believe this will help the whole livestock sector in Zambia to continue to grow and expand whether it is in the production of beef, poultry, dairy or pork products. Another notable undertaking we are involved in, ladies and gentlemen, is the:

   
   

3. PALM PROJECT
   The Zambeef Group has to date invested around K22bn (US$5m) in its Palm project in Northern Province. Zambeef’s subsidiary, Zampalm Limited, is currently planting the first 3,000 hectares of palms. Currently, Zambia imports around 60,000 tonnes of cooking oil per annum. It is the opinion of Zambeef that not only can these imports be substituted once Zampalm Limited commences production, Zambia can become net exporter of this product.

   
   

4. RETAIL NETWORK
   I am pleased to confirm that the Zambeef Board has approved an ambitious plan for the upgrading of the Zambeef retailing network. The public can look forward to new Zambeef outlets opening up as well as the upgrading of our existing outlets.

   In addition, Minister, I would like to point out that in the 16 years Zambeef has been in operation, it has created 3,597 jobs.

Finally Minister, through our regional abattoirs which we have set up throughout the country, we play an important role in curbing livestock diseases by slaughtering animals in the districts where they are and reducing the movement of live animals. In addition, we will pay around K66bn into the rural parts of Zambia which will go a long way in stimulating development, trade and commerce in these areas.

Again, our guest of honour, other Ministers present and senior government officials, we would like to extend our most sincere appreciation to Government for having accepted to sign and include today, Zambeef Products PLC, among those companies worthy of this important recognition in the Investment Promotion and Protection Agreement. This indeed encourages Zambeef to continue to reinvest in the Zambian economy as can bee seen in our growth over the years.

I Thank You.