Growth Opportunities and Employment Creation Potential of Zambia's Coffee Value Chain

Abstract

The main objective of this study was to identify the actors in the coffee value chain in Zambia as well as to identify and assess the opportunities and employment creation potential of the value chain. The study found that the potential for the growth of the coffee sector lies in Zambia’s production of the globally competitive Arabica coffee variety; the increasing global demand for specialty coffee in premium niche markets (mainly based on fair trade and organic farming principles); and the existence of institutional arrangements such as the Zambia Coffee Growers Association that promote, regulate and coordinate the development of coffee in Zambia. However, despite this potential, the coffee sector has been experiencing a downward trend in production and export of coffee beans. While a wide range of constraints from production to policy issues limit the growth of the coffee sector, the most noteworthy factors are the long production period of the coffee plant which acts as a disincentive to invest in coffee production; the lack of research programmes; limited Zambian brand recognition; and the lack of accessible and affordable financing for coffee growers. Sustainable growth and employment creation in the coffee sector can be achieved through coherent strategies such asthe government working with the private sector to come up with innovative ways of availing affordable financing mechanisms for farmers. The government should also facilitate the development of technologies and marketing strategies to ensure that Zambian coffee fetches premium prices on the world market.