The UK government-owned development finance institution British International Investment (BII) is preparing to take a controlling stake in Zambian food producer Zambeef, aiming to strengthen regional food security and expand the company’s footprint across Southern Africa, BII’s Africa head told Reuters.
BII, formerly known as CDC Group, first invested in Zambeef in 2016 and is currently the food producer’s largest shareholder, holding 17.5 percent of shares, including preference shares. Under the proposed plan, BII intends to convert its preference shares into ordinary equity, a move that would raise its stake to 59.29 percent, giving the UK investor majority control over the company.
Chris Chijiutomi, BII’s head of Africa, said the acquisition would enable the development finance institution to push for operational improvements and strategic expansion. “We hope to build Zambeef into not only a Zambian champion, but potentially a Southern African champion,” he said. The move aligns with BII’s broader priorities in food and food security, which seek to support companies that can ensure more reliable access to agricultural products across the continent.
Zambeef is one of Zambia’s largest agribusinesses, with operations spanning livestock, crop production, processing, and retail distribution. Its integrated approach allows it to supply meat, dairy, eggs, and other food products domestically while also exporting to neighbouring countries, making it a critical player in the regional food supply chain.
BII is launching a new five-year strategy this year with an emphasis on frontier markets — smaller, higher-risk economies that often struggle to attract private investment. Chijiutomi highlighted Zambia, Sierra Leone, the Democratic Republic of Congo, and Ethiopia as key targets for this strategy. The majority stake in Zambeef would mark a significant commitment in the Zambian market and signal BII’s willingness to increase engagement in frontier economies.
To fund its investments, BII is also exploring partnerships with African savings pools, including pension funds and sovereign wealth vehicles. Chijiutomi cited collaboration with Nigeria’s sovereign wealth fund and South Africa’s Public Investment Corporation as examples of linking local capital with international development financing.
Africa currently accounts for approximately 60 percent of BII’s portfolio, which totals around 10 billion pounds ($13.3 billion). Investments span sectors including renewable energy, sustainable agriculture, financial inclusion, and productivity-enhancing enterprises. “Africa remains central to BII and our focus on inclusion, productivity, and climate,” Chijiutomi said.
Experts say that acquiring a controlling stake in Zambeef could provide the company with greater access to capital and technical support, allowing it to modernize operations, scale production, and expand into new markets. Analysts note that a stronger Zambeef could help stabilize food prices in the region and reduce reliance on imports, particularly for meat and dairy products.
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However, Zambia’s agriculture and food sector faces challenges, including fluctuating commodity prices, infrastructure bottlenecks, and climate-related risks. Analysts say that BII’s involvement could help mitigate some of these risks by providing long-term financing and operational guidance, although political and regulatory factors in frontier markets can still affect project timelines.
The proposed deal reflects a growing trend of development finance institutions taking active roles in strategic African companies. By acquiring a majority stake, BII would have both the leverage and responsibility to shape Zambeef’s growth trajectory, with implications for regional food security, employment, and industrial development.
“This is about building durable businesses that can deliver for local communities and for the continent,” Chijiutomi said, highlighting BII’s dual mandate of development impact and financial sustainability.
If completed, the Zambeef acquisition would mark one of BII’s largest direct investments in a frontier African agribusiness to date, reinforcing its strategy to back companies that combine commercial viability with social and economic impact.
