MILES SAMPA EXPRESSES SHOCK AT GOVERNMENT DECISION TO BUY A $3.5MILLION FARM AT $13.5MILLION
WHY IS GOVERNMENT WASTING PUBLIC MONEY BUYING A NON VIABLE FARM FROM ZAMBEEF AT $13.5M ?
August 10th, 2024
By Miles B. Sampa, MP
Woke up to surprising news that the Government bought (transactions already concluded) from Zambeef PLC a farm based in Chiawa at a colosal sum of $13.5M.
Apparently, so that government can (via the ZNS) start to farm Maize. Since when in the World did government start becoming the farmer itself? Has Zambia not been through this route before under KK’s UNIP era in pre 1991? There was a farm in each province if not district, to cultivate and rear animals for the population. Namboard was to market the produce, but all failed and all projects went bankrupt. Why are we going that route again?
Other than banana farms, I have never heard of another crop successfully grown on a commercial basis in Chiawa by any farmer.The soils, wet and hot weather conditions in that Chirundu terrain maybe a big factor.
The Constitution of Zambia under Article 210(1) demands that government acquisition of assets ought to be done in a transparent and cost effective manner. Other than seller, land size and price, there is no other details availed for this transaction. Was there another farm seller or it’s just Zambeef from the blues? What is the expected EBITDA or IRR for this investment ?
Who handled this transaction and what’s their Commision if any? What were the terms of payment, cash or credit terms etc etc.
Then Government becoming a Farmer itself is also going to crowd out the private sector that is into agriculture. Should Government’s roles not start and end at creating an enabling environment for subsistence small scale and commercial farmers so that they produce surplus maize for domestic consumption and for export purposes?
Where has government that is broke found the $13.5M to buy the Chiawa farm? It surely was not in the 2024 Budget and not even in the supplementary Budget approved by Parliament a few weeks ago. Is NAPSA’s money for pensioners being used again and won’t NAPSA go burst given they’re funding every investment from the Ndola Lusaka road to KCM?
I challenge government to state how they hope to make the Chiawa farm viable when Zambeef itself who are seasoned agriculture experts failed to make the farm viable. Then we have drought and the Kafue and Zambezi rivers are at their lowest. So how will irrigation at this farm happen to risk a loss of the $13.5M pensioners or tax payers money?
I know the British investment arm the Commonwealth Development Corporation-CDC has shares in Zambeef. Are they the ones we are trying to impress or redeem out of their loss making Chiawa farm? Otherwise I am at pain to understand how or where descendants of the Queen (expatriate farmers) have failed, us muntus (ZNS) with zero farming success story will manage to efficiently grow the maize and recover the $13.5M public funds that have been thrown there. Who is eating what in this transaction because it makes no farming or economic sense. Let’s however not forget that nothing remains a secret forever. This transaction will sooner than later come to haunt all involved and brokering this bad investment.
Then there is the question of whether vested interests in this transaction have been declared especially from known persons around top government circles who have links directly or indirectly to Zambeef and its main shareholders CDC.
There is surely more questions than answers in this exorbitant farm purchased by a government said to be capitalism themed but yet operating like they are a socialist or communist regime where owning and operating farms is possible.
MBS10.08.2024
MILES SAMPA EXPRESSES SHOCK AT GOVERNMENT DECISION TO BUY A $3.5MILLION FARM AT $13.5MILLION
