Zambia

Project Spotlight The combination of PROFIT-coordinated field days and the practical training in marketing and business management provided by CLUSA prompted a farmer group to take the initiative to open a shop that stocks Cropserve input products at rates discounted for farmers. Choma farmers no longer have to face long, expensive journeys to purchase inputs.

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ZAMBIA - Production, Finance, and Technology (PROFIT)

A southern African nation, Zambia is home to approximately 11.5 million people and the population is growing at a rate of 1.7 % annually ('07). Sadly, the country's HIV prevalence rate of around 16.5% (2003 est.) is contributing to the population's low life expectancy of 38 years. Per capita GDP is estimated at $1,000 while annual GDP growth rate is placed at 6% ('06). Zambia's main agricultural crops are corn, sorghum, rice, groundnuts, sunflower seeds, vegetables, horticultural products, tobacco, cotton, sugarcane, livestock, coffee, and soy beans. An estimated 80.6 % of the population is literate ('03 est.).

Current Project
Production, Finance and Technology - PROFIT (April 2005-March 2010). PROFIT operates in Lusaka, with regional offices in Choma, Kabwe, Mongu, Serenji and Solwezi.

Funding
United States Agency for International Development (USAID)

Partners
PROFIT project is implemented by CLUSA as the prime recipient in cooperation with Emerging Markets Group (EMG) and International Development Services (IDE).

Goals

• Use of business development services (BDS) to enhance value-added production and technology;
• Increased access to business development services and finance.

Objectives
(1) Systematically increase the capacity of private sector enterprises to provide enterprise development services to small-scale farmers in order to increase the farmers' productivity and income.
(2) Facilitate the upgrading of local development enterprises and markets to ensure scalability and sustainability and build capacity among Zambian public and private sector institutions and structures.
(3) Address cross-cutting issues including HIV/AIDS and gender.

Strategies
The PROFIT program is a cutting-edge approach to rural development in action. It is grounded in the belief that market opportunities encourage farmers and public/private sector players to form partnerships and take responsibility for tackling issues affecting the product value chain.

CLUSA's strategy for BDS market development is rooted in a sound understanding of Zambia's socio-economic and cultural environment. PROFIT serves as an intermediary through its market interventions and empowers Zambian farmers to compete effectively by improving their production capacity, understanding of markets and ability to meet market demand. CLUSA is training smallholders to survey effectively potential economic activities and advocate on their own behalf through participation in democratically-formed groups. The effectiveness of market interventions are continually assessed to ensure that they are sustainable and produce a favorable impact on rural income.

In addition, a grants program assists small private sector farming enterprises to identify market opportunities and provides them with the means to upgrade key practices for their industry.

Impact (as of June 2007)

• 200 trainers have been trained by the Conservation Farming Unit in sustainable cotton production. Our work in this sector has inspired cotton retailers to target smallholders in their market strategies.
• Engagement of Dunavant, Conservation Farming Unit and a financial service provider to expand the availability of improved tillage technologies into the cotton sector.
• Forest Fruits has designed cutting-edge processing equipment for Wild African honey. The result is increased processing of smallholder honey yields from 350 tons to over 400 tons.
• Engagement of Zambia's second largest honey exporter through financing an innovative revolving fund aimed at improved production technology.
• 21 cattle production communities (48,000 heads of cattle) linked with veterinary doctors and companies to develop a herd health management plan that will ensure accountable and affordable treatment and disease control.
• "M-funds" transfer system being tested to determine feasibility of electronic payment of cotton farmers.
• Facilitated 13 market research field days attended by 3,775 farmers. Field days resulted in the purchase of inputs worth $7,904 and the establishment of bulk buying mechanisms and stores in rural communities.
• Over 150,000 individuals reached with community HIV/AIDS prevention programs.