ZAFFICO Launches Ambitious Value-Addition Drive for Sustainable Growth
The Zambia Forestry and Forest Industries Corporation (ZAFFICO) has unveiled an extensive value-addition initiative set to unfold over the next few years.
During a recent visit to ZAFFICO by the CEO of the Industrial Development Corporation (IDC), Mr. Cornwell Muleya, ZAFFICO Managing Director Mr. Mundia Mundia outlined an ambitious investment plan that aims to transform the corporation’s operational landscape.
Over the next three years, ZAFFICO plans significant infrastructure investments, including the establishment of a sawmill, creosote line, and kiln by 2024. The company then plans to install a chipboard plant in 2025, followed by a plywood plant and a briquette factory in 2026.
This forward-thinking approach aligns with the IDC’s operational reform agenda, focusing on enhancing ZAFFICO’s value chain and operational efficiency. IDC currently holds a 62.88% ownership stake in ZAFFICO.
Mr. Mundia emphasized ZAFFICO’s commitment to value addition and mechanization, with a focus on long-term value and revenue growth while maintaining environmental sustainability.
A key component of this strategy involves replenishing ZAFFICO’s wood stock by progressively adding 50,000 hectares of new plantations over the next 10 years, with an annual planting target of 5,000 hectares.
In support of this vision, ZAFFICO has secured 50,000 hectares of land across four provinces for establishing new exotic forest plantations.
The corporation is also actively engaged in replanting 2,000 hectares of clear-felled areas annually, demonstrating its commitment to ecological balance.
Commending ZAFFICO’s reinvestment efforts, IDC CEO Mr. Muleya highlighted the importance of seeking recapitalization through green funds.
He encouraged ZAFFICO to explore collaboration with the Ministry of Green Economy to access funds through carbon credits, aligning with sustainable financing mechanisms.
Mr. Muleya praised ZAFFICO’s long-term investment strategy, recognizing its significance in ensuring a sustainable supply of wood products for the coming decades.
As ZAFFICO positions itself for growth and environmental responsibility, he noted that these initiatives mark a transformative period for the corporation and the forestry industry in Zambia.
