Southern Province is one of Zambia’s most agriculturally rich and productive regions, with over 98% of rural communities and more than 80% of urban businesses thriving on agricultural activities. The Province offers lucrative investment opportunities in crop and horticultural production, input supply, mechanization, irrigation development, agro-processing and value addition. With vast arable land, irrigation potential, favorable climate conditions and strong government support Southern Province has immense potential for growth and development making it an attractive destination for investors seeking to tap into the agricultural sector’s vast opportunities.
The province is characterized by farming categories, ranging from smallholder farmers (<5Ha), medium-scale farmers (5-25Ha), and commercial farmers. The Leading Crops produced in the province include Maize, Soya Beans, Groundnuts, Sunflower, Wheat, Sorghum, Cotton, Irish Potatoes, Sugarcane, stevia as well as Horticultural crops and trees among others. Beyond being a primary source of livelihood and nutrition, the agricultural sector in the province plays a crucial role in Zambia’s economy by supplying raw materials to industries, producing export commodities, creating employment, and ensuring national food security. By investing in Southern province investors can unlock high returns while contributing to sustainable economic development.
Invest in Southern Province – Zambia’s Agricultural Powerhouse!
KEY STATISTICS
- Total land Area for the province: 8.5 million km²
- Arable Land: 3.57 million hectares
- Estimated land under cultivation: 1.14 Million
- Irrigation Potential: 448,876 hectares
- Current Irrigated Land: 74,241 hectares
- Farm Block Development: Kazungula (Musokotwane) Farm Block – 182,000Ha with a total of 225 farms available for investment opportunities
- Major Rivers: Zambezi & Kafue – providing year-round irrigation potential
- Dams:742
STRATEGIC & COMPARATIVE ADVANTAGES
Southern province offers unique advantages for investors including: –
- Fertile Land: Suitable for crop production including production of high-value crops and horticulture crops.
- Climate: Mostly a tropical savanna climate with moderate to high rainfall (800-1000mm annually), supporting a variety of crops.
- Soil Types: Well-drained loamy and clay soils, ideal for both crop and pasture farming.
- Abundant Water Resources: Presence of Zambezi and Kafue Rivers provides substantial water supply and huge potential for irrigation development
- Existing irrigation infrastructure: with room for expansion and development
- Market Demand: Growing domestic & export markets (Botswana, Zimbabwe, South Africa, China, EU).
- Government Support: Favorable policies, incentives (tax breaks and subsidies), public-private partnership (PPP) models and investment in support infrastructure (roads and irrigation systems).
- Access to regional trade corridors
AREAS OF INVESTMENT POTENTIAL
Southern Province is a key hub for agricultural production, offering diverse investment opportunities across various crops. With the right interventions, the region can enhance yields, expand agro-processing and access new markets. Investment prospects span crop production, value addition, agricultural mechanization, irrigation development and input supply. Additionally, the province’s rich cultural heritage, export-oriented ventures and commitment to sustainable farming practices further strengthen its agricultural potential
- CROP PRODUCTION
a) Maize – The province’s dominant staple crop, widely cultivated for both consumption and commercial sale but largely sold unprocessed. This unlocks prime opportunities for:
- Value addition: Milling, processed maize products, and stock feed production.
- Livestock feed production: Leveraging Botswana’s demand via Kazungula.
b) Soybeans, Groundnuts, Sunflower – Thriving in the Tonga Plateau (Mazabuka, Monze, Pemba, Choma, Kalomo, and parts of Zimba) with high market demand and the capacity to expand cultivation beyond the current 60,000 hectares cultivated. Investment areas include:
- Irrigation & mechanization: To expand cultivation beyond 60,000 hectares.
- Processing: Edible oil, animal feed, and plant-based protein products (soya pieces, soy milk, peanut butter, snacks).
c) Wheat – Primarily grown under irrigation in commercial farms with potential for investment focus in:
- Flour milling and wheat-based products.
d) Cotton – A cash crop supporting investment in:
- Textile industry and edible oil extraction.
e) Sugarcane – A major economic driver and one of the most successful non-traditional export crops accounting for 3-4% of national Gross Domestic Product (GDP) and 6% of national exports with expansion potential in Mazabuka, Namwala, Itezhi-Tezhi, and Kazungula due to fertile land and access to water. Opportunities include:
- Ethanol-based fuels and gel fuels.
- Value addition with Zambia Sugar Plc’s standing a successful model in sugar industry investment.
f) Horticulture (Tomatoes, Onions, Vegetables) – Strong irrigation potential for Fruit and vegetable processing plants, leveraging irrigation access
g) Irish Potatoes – Southern Province is one of the leading provinces in the production of Irish potatoes, widely grown in Kalomo, Kazungula, Mazabuka, and Chikankata with room for expansion from 293 to over 10,000 hectares. Key opportunities:
- Seed multiplication, sorting, packaging, and distribution.
- Processing into frozen chips and flavored crisps.
h) Sorghum – Southern Province stands as the largest producer of Sorgum in the country (ZAMSTATS) with expansion potential from 16,600 to over 85,000 hectares. Investment areas:
- Large-scale irrigation and bulk storage infrastructure.
- Ethanol production, opaque beer breweries and transportation facilities.
i) Stevia – A Natural, Zero-Calorie Sweetener and high value crop with opportunities for expansion and export to China & Europe
2. IRRIGATION DEVELOPMENT
Irrigation development in Southern Province presents significant opportunities to enhance agricultural productivity and ensure sustainable water management. With access to major water sources like the Zambezi and Kafue rivers, the Province is well-positioned for investment opportunities in:
- Expansion of bulk water transfer services from Zambezi and Kafue rivers
- Commercial-scale irrigation schemes development
- Public-Private Partnerships (PPPs)
3. AGRICULTURAL MECHANIZATION
The low level of mechanization in agricultural production in Southern Province presents key investment opportunities to boost productivity and efficiency, enhance food security, increase incomes and drive economic growth. Key investment opportunities include: –
- Supply of mechanization equipment (supply of tractors, harvesters, etc) and spare parts
- Establishment of schemes to hire out mechanisation equipment
- Access to credit facilities
4. AGRO-PROCESSING AND VALUE ADDITION
Southern Province’s agricultural sector has significant potential for processing and value addition, as most crops are sold in raw form, presenting opportunities for:
- Establishment of processing plants to add value to agricultural commodities.
- Supply of processing equipment technology to support processing and value addition initiatives.
5. FARM BLOCK DEVELOPMENT
Southern Province offers investment opportunities in farm block development, particularly in the Kazungula (Musokotwane) Farm Block, which features 182,000 Ha of arable land and 225 farms available for investment, ranging from:
- Large-scale farms: 4 farms with land above 5,001 hectares and 6 farms with land between 1,001 and 5,000 hectares;
- Medium-scale farms: 48 farms with land between 101 and 1,000 hectares and;
- Emergent farms: 167 farms with land between 11 and 100 hectares
AGRICULTURAL INPUT SUPPLY
- Southern Province offers investment opportunities in the production and supply of agricultural inputs, including, the production and supply of seeds, fertilizers and farm implements.
RICH CULTURAL HERITAGE
- For generations, the indigenous communities of Southern Province have taken great pride in their farming traditions. With a strong cultural emphasis on diversifying crops, these communities offer a unique opportunity for investors to tap into and partner with local farmers through outgrower schemes.
RENEWABLE ENERGY
- Invest in solar, wind and bioenergy for sustainable farming solutions.