AFGRI Corporation halts leasing services towards local farmers

THE poor financial performance of the agricultural sector in Zambia has forced AFGRI Corporation Limited to discontinue leasing services towards support to local farmers.

In a statement to its clients, suppliers, and other stakeholders dated February 19, 2019, country manager Albre Badenhorst said the corporation would discontinue the leasing services by the end of February.

“This letter serves to clarify the current position of AFGRI’s operations in Zambia. As you may be aware there have been a number of changes to our operations recently which have been necessitated by the poor financial performance of the agricultural sector in Zambia at large, as well as other operational challenges.

“As regards AFGRI Leasing Services, providing finance to primary producers, we are simply not able to secure the correct level of funding required to support local farmers in line with their growth expectations going forward, and accordingly will discontinue operations as of the end of February 2019,” Mr. Badenhorst said.

He said in respect of the grain management services, the corporation had embarked on reducing the number of depots it operates for the storing of grain and that the process will continue as certain identified sites were emptied but that other sites will remain open for the foreseeable future. He said the company equipment division was being transferred to a separate legal entity styled AFGRI Equipment Zambia Limited which will bring the structure in line with other countries AFGRI operates in but said the John Deere and other brands will not be impacted as both the Lusaka and Mkushi branches, and Mpongwe parts depot, remain fully operational.