24/07/2012 (Zambia Daily Mail) - Government has called on commercial banks to provide long-term finance to assist the growth of long-term projects in the country.

Stephen Mwansa

Commerce, Trade and Industry permanent secretary Stephen Mwansa says short-term finance commercial banks are currently providing is undermining the growth of long-term investments because companies are required to pay back their loans before the investments begin to bear fruit.

In particular reference to the country’s first-ever palm oil project being undertaken by Zambeef Products Plc under its subsidiary Zampalm, Mr Mwansa said the palm oil project is a long-term investment which will only realise revenue between 2019 and 2020, hence the need for long-term finance.

He said this when he toured the project in Mpika on Friday.

“This is a home-grown investment that needs full support and this is a challenge to commercial banks to provide long-term finance as the company will only realise its fruits after many years of continued investments,” he said.

M Mwansa said he is happy that Zambeef is positioning the country as an export hub saying Zambia will become the first country in the region to provide palm oil, which is the cheapest source of edible oils.

Like other countries in the region, Zambia imports 75 percent of its edible oils from Malaysia and Kenya.

Mr Mwansa said Government will provide the necessary growth to ensure that Zambeef achieves its goal of being the hub for edible oils in the region.

Earlier, Zambeef chief operating officer Michael Ledwith said Zampalm will produce 20,000 tonnes of edible oils by 2020 and is expected to realise a revenue of over K100 billion.

Mr Ledwith said the US$10 million investment which commenced four years ago has planted palm trees on 1,800 hectares of land and increase the hectares by 500 annually.

He said the project will reduce costs incurred when importing edible oils as the country will be self-sufficent, adding that the Zambeef group will export edible oils within the region.

Mr Ledwith said the palm oil project has so far created between 350 and 500 jobs.