- Zambeef entered electricity supply agreement with Kanona Power Company Limited, owned by Non-Executive Director Katebe Monica Musonda, for Mpongwe farms effective 1 February 2025
- USD4,987,459 purchased in first 12 months to January 2026, with fixed price rising 3.1852% from 1 February 2026, cancellable on 30 days’ notice
- Deal cleared under AIM Rule 13
Harare- Zambeef, has formally disclosed a significant related-party transaction under AIM Rule 13, entering a long-term electricity supply agreement with Kanona Power Company Limited, a company in which Non-Executive Director Katebe Monica Musonda is both shareholder and director.
Zambeef is Zambia’s largest integrated cold-chain food products and agribusiness company and one of the largest in the Southern African region with248 retail outlets across Zambia and West Africa (Nigeria & Ghana). It is the largest supplier of beef in Zambia and ranks among the top producers of chicken and pork in the country.
The agreement, signed on 28 January 2025 and effective 1 February 2025, makes Kanona the sole supplier of power to Zambeef’s strategically important Mpongwe farms. Two subsequent addenda extended the original six-month term, first to 31 July 2026.
In the first full twelve-month period (February 2025 to January 2026), Zambeef purchased electricity worth USD 4,987,459 (including taxes). From 1 February 2026 onward, the fixed price (excluding taxes) rises by 3.1852%. The contract remains cancellable by either party on 30 days’ notice.
The board stated that the arrangement has delivered a clear improvement in both pricing and reliability of electricity supply to the Mpongwe operations, a critical factor for the group’s large-scale row-cropping, feedlot and processing activities.
For governance purposes, the independent directors (the entire board excluding Musonda) consulted the company’s nominated adviser, Cavendish Capital Markets Limited, and confirmed that the terms of the transactions are “fair and reasonable insofar as shareholders are concerned.”
Zambeef, Zambia’s largest integrated cold-chain food and agribusiness company, operates extensive farming, abattoir and processing facilities that are highly dependent on stable power. The Mpongwe farms form a core part of its 7,254 hectares of irrigated row-crop production and support the group’s beef, chicken, pork and dairy operations across Zambia, Nigeria and Ghana.
The disclosure highlights both the operational importance of secure electricity in Zambia’s power-constrained environment and the company’s adherence to strict AIM Rules on related-party dealings. No other commercial terms were altered, and the independent directors’ sign-off reflects that the deal meets arm’s-length standards.
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