The Government of the Republic of Zambia (GRZ) is inviting Private Investors to establish a modern Tomato processing project that falls under agro – processing sub-sector, which is classified as a priority sub sector.
The tomato processing plant will produce an average of 10,000 tonnes of tomato paste per annum and will be constructed on 10 acres of land located in Monze in the Southern Province of Zambia. The business will outsource tomatoes from all provinces in Zambia, which will need the construction of tomato collection depots for the collection of fresh tomatoes for processing. The total investment that is required to operationalize the project is US$5 million, which is expected to be fully funded by private investors. The GRZ, Zambia Development Agency (ZDA), Ministry of Trade Commerce and Industry (MCTI), Ministry of Agriculture and Livestock (MAL) and other Government Agencies will assist the Private Investors to establish the project, through various forms of interventions. The project will be implemented through a Special Purpose Vehicle that will be wholly owned by Private Investors. The project will take 12 months to ope-rationalize.
The ZTPP will produce both Cold and Hot Break Tomato Paste to meet customers` specifications. The processed products will be of high quality and grade that meets international standards. They will be packaged into 50 kg aseptic bags for the regional and international markets and small packages for the domestic markets ranging from 2kg, 5kg, 10kg and 25kg aseptic bags.
About 20% of tomato paste produced will be sold to the domestic market in Zambia whose demand level is estimated to be processing plant in Zambia. The funds will be utilize to meet the construction costs of the processing plant buildings, acquisition of processing plant, equipment, machinery, vehicles and working capital to pay for raw materials, inputs, salaries and other operational costs.
The investment is in the form of equity finance in a Special Purpose Vehicle that will manage and run the project.