Project Details
Sector: Agriculture Approval date: 19-Jun-2013 Task Manager: BANGWE Lewis Mupeta, RDGS4
Total cost: 14000000
Currency: UAC
Source(s) of financing
ADF: 12000000
Government: 1710000
Implementing Agency: MINISTRY OF AGRICULTURE - WATER DEVELOPMENT Location: Northern and Muchinga Provinces


The overall sector goal is to contribute to economic growth and food security. The specific Project objectives are to improve smallholder livestock production, productivity, market linkages and income of livestock farmers.


The Project will comprise: (1) Livestock Infrastructure Development Component: with 2 sub-components (Rural Community Infrastructure Support and Public Infrastructure Support) engaged in construction or rehabilitation of: (i) Livestock Service Centres; (ii) milk collection centres; (iii) livestock marketing centre; (iv) livestock slaughter facilities; (v) rural access roads; (vi) district veterinary laboratories; (vii) quarantine stations; and (iv) veterinary check points, (2) Capacity Building Component: focussing on community mobilisation, farmer organisation, promotion of women participation, field demonstrations, staff and farmer training, and environmental and social management activities; and (3) Project Management Component: focussing on project implementation through the existing institutional structures of the Ministry of Agriculture and Livestock (MAL) but using the National Coordination Unit (NCU). The LISP will be implemented in Muchinga and Northern Provinces. Implementation Arrangements: The LISP will be implemented over a period of 5 years. MAL will be the executing agency and the NCU will oversee implementation. A Project Steering Committee will be created to provide strategic and operational guidance. LISP will be monitored by the Bank through regular supervision missions. The NCU will submit quarterly progress reports to the Bank. A Mid-Term Review will be undertaken in PY3 whilst the Project Completion Report will be prepared during fourth quarter of PY5. Financial Arrangements: The total project cost is UA 16.8 million and will be financed with an ADF loan of UA 15.0 million (89.3%), the GoZ UA 1.7 million (10.1%) mainly through office space and staff salaries while the beneficiaries will contribute, in kind, UA 0.1 million (2%), in form of labour. In addition, GoZ will suffer loss in fiscal receipts due to tax and duty exemptions of all procurements. For the ADF loan, disbursement for large contracts will be done through direct payment method and the rest through the special account method. One foreign currency interest-bearing special account and one local currency interest bearing account will be opened in a commercial Bank acceptable to AfDB. Governance: Zambia has relatively improved on key indicators of governance including control of corruption, rule of law, regulatory quality and government effectiveness. GoZ has made reforms in public financial management, public sector audits, public procurement, public service, privatization of public enterprises and strengthening anti-corruption institutions. Gender: It is estimated that 33% of rural households are female headed. LISP will focus on increasing access to proposed activities for women (at least 30% of beneficiaries), participate in community representation and decision-making. HIV/AIDS: Zambia's overall HIV/AIDS prevalence rate is about 16%. The MAL's HIV/AIDS strategy focuses on modification of the extension and research priorities and incorporation of HIV/AIDS related information in extension messages. LISP will use MAL's HIV/AIDS extension tools and also assist in improving nutrition status of rural communities.


LISP will have positive impacts on the economy by assisting to build and retain institutional and technical capacity for over 90 registered cooperatives, direct beneficiaries, with about 100,000 paid up households (more than 2,000 female headed households/FHH) and also indirectly benefit about 200,000 households (>30% FHH) through improved livestock production, productivity and marketing, reduced livestock mortality, improved food security, livestock products, veterinary and extension services. Strengthened capacity of the cooperatives will result in improved linkages with agribusiness institutions, improved marketing arrangements, increased private sector participation in livestock sub-sector and increased employment opportunities on-and-off farm for youth and women. The IERR is estimated at 31% and an NPV at a 12 % opportunity cost of capital of US$15.3 million. It is also estimated that at the household level, there will be an incremental net income of US$ 720 as against US$ 364 in the without Project case.


The Government of Zambia's (GoZ) development agenda are articulated in the National Vision 2030 and the Sixth National Development Plan (SNDP: 2011-2015). The National Vision 2030 reflects the aspirations and determination to be a prosperous middle-income country. With regard to the livestock sector, the SNDP's main focus is to improve livestock production and productivity through infrastructure development, creation of Disease Free Zone (DFZ), enhancement of livestock disease control and surveillance, research and development, development of livestock standards and grades and processing of livestock products. The MAL is refining its sector policies and strategies based on the National Agriculture Policy (NAP: 2004-2015). The contribution of agricultural sector to the GDP is 21.5% of which about 28% is from the livestock sub-sector. Livestock production enhances poverty reduction, the economic viability and sustainability of farming systems since they diversify income, provide all-year-round employment and serve as insurance in times of need. However, the livestock sector lacks the necessary infrastructure for improved production, marketing and value addition, remains under-developed and is negatively affected by frequent outbreaks of diseases. The Livestock Infrastructure Support Project (LISP) is in line with the National Vision 2030 and the SNDP. The LISP is anchored on Pillar I of the Bank Group's Zambia-Country Strategy Paper (CSP: 2011-2015) Mid-Term Review (Productive Sectors), which is "Supporting Economic Diversification through Infrastructure Development". The Project is also in line with the Bank's Long Term Strategy (LTS: 2013-2022) which emphasises on infrastructure, regional integration, private sector development, governance, higher education science and technology (HEST), green growth, and inclusive growth.