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A Non-Profit Zambian Organization Facilitating Zambia’s Smallholder Producers Access
To Non-Traditional, Higher-Value Markets
Propelling Zambia’s Rural Economic Take-Off
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Focus on Enterprise Development and Not Income Generation
Income Generation • Participation in small-scale production and marketing
• Net income does not exceed minimum national wage
• Self-employment that may involve family members
• Natural resource gatherers/subsistence farmers/street vendors
• Stuck in poverty trap with minimal prospects for growth
Focus on Enterprise Development and Not Income Generation
Enterprise Development • Participation in small-medium scale production and marketing
• Net income of entrepreneur exceeds minimum national wage before or after ED intervention
• Salaried employees before or after ED intervention
• Involves use of mechanized equipment or ICT in production process before or after intervention.
• Employees typically earn more than 1 USD a day before or after intervention.
• May create income generation opportunities for small-scale suppliers of raw materials
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Investment ImplicationsPer Client
Income Generation Enterprise Development
• Usually less than $1,000
• Manual equipment• Usually no
investment in transport
• Usually more than $1,000
• Mechanized equipment
• Investment in transport
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Support to Producer Cooperative:
Partner: US African Dev, Foundation
Support toProcessor
Partner:Word en Daad
Support toMarketing
Partner: SNV
Value Chain Approach
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Copperbelt
Examples:Launch of two state-of-the-art irrigation schemes in Kalulushi and Mufulira
Launch of new honey processing company, Kitwe
Establishment of smallholder coffee wet processing mill in Chingola
Groundnuts Marketing Project, Mpongwe
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Northern
Examples:First time introduction of smallholder milk collection enterprises; Mpika, Mbala
Dairy Processing Support to smallholder milk collection centre, Mpika
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WesternPartners: USAID, USADF
Examples:New industrial-scale beef processing plant in Limulunga
Expansion of rice processing plant in Mongu
Support to organic rice outgrower scheme in Sefula
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Benefits of SME DevelopmentExample: ZATAC Total 2003-2010
SME Development • SMEs financed: 117
• Total SME Investments: USD 11,181,355
• Average per SME: USD 95,600
• Project Mgt Costs: USD 2.5m
• Total: USD 13,681,355
• Job Creation:
Permanent 490Smallholder Suppilers 6,183Seasonal 953Total 7,626
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Future Directions
More integration: TA & Financial Services
Separate Financial Services Mgt
Strategic Partnerships with Commercial Banks & Other Financial Institutions
Intensification of Value Chain Focus
Globalization of EDS