Zambia - Coffee Production Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. 2173a-ZA STAFF APPRAISAL REPORT ZAMBIA COFFEE PRODUCTION PROJECT November 15, 1978 Regional Projects Department Eastern Africa Regional Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency unit Kwacha (K) US$1.00 K 0.83 1/ K 1.00 US$1.20 WEIGHTS AND MEASURES 1 meter (m) 3.28 feet (ft) 1 kilometer (km) 2 0.62 miles (mi) 1 square kilometer (km ) = 0.386 square miles (sq mi) 1 metric ton (m ton) 2,204 pounds (lb) GLOSSARY OF ABBREVIATIONS CBC - Consumer Buying Corporation IDZ - Intensive Development Zone INDECO - Industrial Development Corporation LINTCO - Cotton Parastatal MI - Ministry of Industry MLA - Ministry of Lands and Agriculture NAMBoard - National Agricultural Marketing Board NIEC - National Import and Export Corporation OSZ - Overseas Services Zambia, Ltd. RDC - Rural Development Corporation RUCOM - Rucom Industries, Ltd. TBZ - Tobacco Board of Zambia ZIMCO - Zambia Industrial and Mining Corporation ZAMHORT - Zambia Horticultural Parastatal FISCAL YEAR Government of January 1 - December 31 Zambia Rucom April 1 - March 31 1/ On March 17, 1978, the Kwacha was devalued by 10 percent in terms of the SDR. The exchange rate quoted is used throughout this report.  FOR OFFICIAL USE ONLY ZAMBIA APPRAISAL OF THE COFFEE PRODUCTION PROJECT Table of Contents Page No. I. THE AGRICULTURAL AND RURAL SECTOR ........................ 1 A. Background ....................... 1 B. Performance and Strategy ..... ....................... 2 C. Agricultural Services ................... ............ 3 D. Bank's Past Activities . ............................ . 4 II. THE COFFEE SUB-SECTOR .................................... 4 A. Production ....................... 6 B. Coffee Extension and Research ....................... 6 C. Processing and Marketing ............................ 7 D. Coffee Development Problems and Potential ........... 7 III. RUCOM INDUSTRIES LIMITED (RUCOM) ..... .................... 8 A. Background . . ............. .......................... 8 B. Management and Organization . . . 9 C. Finances 10 IV. THE PROJECT ..11 A. Project Objectives ..11 B. Project Area .....................11 C. General Description ....12 D. Detailed Features ........ 14 E. Project Costs ....18 F. Financing ....20 G. Procurement ....21 H. Disbursement ....22