Kawambwa Tea Industries

Company Description

Kawambwa Tea Industries Limited is Zambia’s major commercial tea producer. It started as a government tea growing pilot project in 1969 and was later commercialized as state owned company in 1975 while the tea processing factory was commissioned in 1976.

Countries of Operation

Zambia

Ownership of Company

Local Company (100% Local)

Number of years since incorporated

Not indicated

Project Pitch

Kawambwa Tea Estate. Kawambwa Tea Industries (“KTI” the “Company”) and the Industrial Development Corporation (“IDC”) are pleased to invite your institution to provide a financial offer for financing of KTI’s acquisition of a modern processing plant, initiation of an out grower scheme and the expansion of KTI’s existing plantation. Kawambwa Tea Estate is the major national tea producer located in Kawambwa District of Luapula Province in Zambia. The project is comprised of the following components

A. Agricultural Components

• Upgrade of plantation irrigation systems;
• 50 Ha of Tea plantations in 4 years;
• Roll out of 1,500 Ha Outgrower schemes.

B. Processing Component

• Construction and equipment of the tea processing factory with a capacity of 1200 tons/year.

C. General Infrastructure and Equipment

• Construction and renovation of existing housing and office space;
• Electrical and telephone connections and water supply;
• Purchase of rolling stock, equipment and agricultural inputs.

D. Administration and Management

• Supervisory staff and plantation and factory management;
• Miscellaneous operating costs.

Team

The Plantation currently has total employee population of 701. Of these, 182 are long term employees and 519 seasonal employees. The expanded processing capacity will require the establishment of an outgrower scheme to supply the required green leaf. The outgrower scheme is expected to create over 2,500 jobs.

Stage

Preliminary

Annual Revenue (in EUR)

Not indicated

Number of employees

Projected employees: 701

Total Project Cost (in USD)

USD 22,529,411

Financing needs (in USD)

USD 12,529,411

Type of financing needed

Not indicated

Planned allocation of fundraising capital

Greenfield (new activity for the company)