Strengthening Market Systems in Northwestern Zambia: Study Reveals Lobito Corridor Opportunities

The Northwestern Province is an economic hub in Zambia with significant mining operations, including the Kansanshi, Kalumbila, and Lumwana mines. Despite this economic activity, agricultural potential remains largely untapped. Our study, conducted with Musika across the Solwezi, Mwinilunga, Ikelenge, Chavuma, Zambezi, Mufumbwe, Kabompo, and Kasempa districts, examined how the strategic Lobito Corridor—connecting Zambia to Angola and global markets—could transform local agricultural value chains and create employment opportunities for rural youth and women.

Understanding Market Dynamics in Northwestern Zambia

"Our assessment aimed to identify barriers to gender and youth integration in economic activities while exploring strategies to strengthen the market ecosystem," explains Stefania Lagonigro, PIN Country Director for Zambia. "We deliberately chose honey, cassava, and pineapple value chains due to their potential for promoting livelihoods, cultural significance, export opportunities, and versatile uses."

As a market-facilitating organisation, Musika participated in conducting the study because it needed to identify key policy and institutional gaps that would support evidence-based decision-making for various market actors.

“The market systems analysis is a necessary step in developing evidence-based interventions that will address key challenges and gaps in the three value chains that were the focus of the study. This inevitably supports evidence-based decision-making for donors, government, and private sector actors,” explained Reuben Banda, Musika Managing Director.

Sweet Opportunities with Honey

The market study found that honey production in Northwestern Zambia is primarily concentrated in the Ikelenge, Kabompo, Mwinilunga, and Kasempa districts. Market demand comes from local consumption and external markets, with urban households, commercial processors, and pharmaceutical industries being key buyers.

While the local honey market is estimated at $25 million annually, the sector faces challenges, including:

• Seasonal supply fluctuations affecting consistent market access
• Environmental degradation through deforestation and destruction of bee habitats
• Limited processing equipment and reliance on traditional methods
• High regulatory fees (K12/kg for honey, K18/kg for beeswax)

Our study also showed that the Provincial Forestry Department is crucial in connecting producers with corporate buyers like Forest Fruits, Wuchi Wami, and Nature's Nectar. However, many small-scale farmers lack direct market access due to logistical constraints and infrastructure limitations.

Opportunities for strengthening this value chain include specialised training programmes for women, improved beekeeping technologies, corporate social responsibility initiatives (like Barrick's 1,000 beehives project), and export potential through agencies like the National Livestock Epidemiology and Information Centre (NALEIC.)

Cassava’s Untapped Potential

Cassava cultivation in Northwestern Zambia is currently focused on household consumption. However, there is significant untapped potential in biofuels, industrial starch production, and gluten-free products. The market remains predominantly local, with occasional imports from Angola filling supply gaps.

As one of Africa's top cassava producers, Zambia has substantial growth potential in value-added cassava products. With appropriate investment in processing infrastructure, the region could see 15-20% annual cassava export growth over the next decade.

Our study identified several challenges inhibiting cassava production, including:

• Lack of quality seeds and appropriate farming technology
• Labour-intensive production methods
• High transport costs limiting market access
• Pest infestations affecting yields
• Limited access to financial services

Despite these challenges, our assessment found farmers willing to scale production if provided reliable markets offering fair pricing, quality inputs, appropriate technology, and training on improved agronomic practices.

The Unveiling of the New Study

Date: Apr 24, 2025   Place: Zambia   Author: Grace Sikanda   

More

Growing Success with Pineapples

Pineapple production has expanded significantly in the Ikelenge and Mwinilunga districts, supported by improved market access and processing initiatives. The Kalene Hills processing factory, established in 2015, has been instrumental in reducing post-harvest losses through juice production and fruit drying operations.

Zambia's pineapple industry produces approximately 100,000 tonnes annually, which shows strong growth potential but remains underutilised for value addition. Our study estimates that pineapple exports could increase by 30-40% within five years with improved market linkages and technology.

Key challenges identified include:

• High perishability and limited cold storage infrastructure
• Inadequate transportation systems affecting timely market delivery
• Inconsistent quality standards limiting export market access

Opportunities for strengthening the pineapple value chain include improving transport infrastructure, developing cold storage capabilities, expanding processing capacity, and strengthening supply chain linkages to meet growing domestic and international demand.

TEVET's Role in Agricultural Development

Our study also assessed Technical Education, Vocational, and Entrepreneurship Training (TEVET) programmes to identify how skills development could enhance economic opportunities in the Lobito Corridor. Current TEVET offerings include general agriculture, carpentry, and beekeeping programmes that support the identified value chains.

Key findings regarding TEVET include:

• The importance of certification (Levels 1-5) and recognition of non-formal skills
• The value of specialised courses such as 10-week beekeeping programmes
• The need for better alignment between TEVET curricula and industry requirements
• Opportunities to connect carpentry students with honey producers needing quality beehives
• The potential for expanding agricultural processing skills training

According to the study, TEVET's ongoing initiatives, including adopting a dual training model and revising the Apprenticeship Act, present opportunities to better align skills development with market needs in these agricultural value chains.

Government Support and Policy Alignment

At our study's official launch on 3 April 2025, government representatives strongly supported our findings and recommendations. Subeta K. Mutelo, Permanent Secretary of the Ministry of Small and Medium Enterprise (SME) Development (represented by Director Bernadette Mwakacheya), highlighted several government initiatives aligned with our study's focus.

"The findings illustrate how SMEs can leverage the strategic advantage of the Lobito Corridor to expand their market reach, enhance trade connectivity, and contribute meaningfully to the broader economy," she said.

Other institutions, including the Rural Enterprise Development Programme, the Citizens Economic Empowerment Commission (CEEC), the Skills Development and Entrepreneurship Project Supporting Women and Youth (SDEP-SWY), and the Transport Corridors for Economic Resilience (TRACER) Project, will provide support for government programmes.

Additionally, the Presidential Delivery Unit (PDU) representative, Hector Hamusankwa, highlighted complementary initiatives, including the Presidential Irrigation Initiative, which targets 500,000 hectares by 2027, and the ongoing review of the Agriculture Credit Act to increase private sector participation.

Recommended Interventions

Based on our findings, we recommend short-term and long-term interventions.

Short-Term Interventions:

• Enhance financial inclusion through accessible loans and finance options for smallholders
• Provide immediate capacity building on sustainable honey harvesting, cassava cultivation, and pineapple post-harvest handling
• Support market linkages between smallholders and processors/cooperatives

Long-Term Strategies:

• Invest in transportation infrastructure and processing facilities for pineapple and cassava
• Implement environmental conservation programmes to support sustainable honey production
• Advocate for policy reforms to reduce regulatory costs for agricultural exports

The Path Forward

The PIN/Musika market study demonstrates that Northwestern Zambia's Lobito Corridor offers significant but underdeveloped potential for sustainable agricultural development. By addressing key constraints in the honey, cassava, and pineapple value chains while strengthening skills development through TEVET programmes, stakeholders can create more inclusive economic opportunities for marginalised communities, particularly youth and women.

The alignment between our study's recommendations and existing government initiatives provides a strong foundation for collaborative action. We remain committed to supporting these value chains through targeted interventions that build capacities, strengthen market linkages, and create sustainable livelihood opportunities in Northwestern Zambia.

This article is based on a comprehensive market systems study conducted by People in Need (PIN) and Musika in Northwestern Zambia's Lobito Corridor. The study focused on economic empowerment and livelihood opportunities for marginalised groups, emphasising youth and skills development.