market analysis study for uptake of...

MARKET ANALYSIS STUDY FOR UPTAKE OF

BIOGAS AND BIO-SLURRY IN ZAMBIA

2 | P a g e

Acknowledgement The assignment would not be complete without the consultant extending his gratitude to the

Netherland Development Organization (SNV) Zambia country office management for their

unwavering support. They ensured that the necessary resources to undertake the assignment

where available and at the disposal of the consultant. To the AgriProFocus team for their

unshaken dedication in ensuring that the assignment was focused on achieving the intended

deliverables. There objectivity cannot pass without mention. The consultant is forever thankful

to the E4A team for providing the project documents, technical insight and information on the

project. The consultant is greatly thankful to the Country Director Dr. Sue Ellis for her leadership

in the whole process and ensuring that the assignment was kept in perspective.

Ministry of Agriculture and Livestock DACOs and SAOs for providing invaluable insights of their

districts in respect to the assignment, for this the consultant is forever indebted to them. Lastly

to the farmers, agro-dealers and cooperative members who took time to discuss with the

consultant, may they continue being icons and ambassadors of positive change in the

community.

3 | P a g e

Table of Contents

Acknowledgement ........................................................................................................................................ 2

List of Acronyms ............................................................................................................................................ 5

Executive Summery ....................................................................................................................................... 6

Introduction .............................................................................................................................................. 6

Objective of Market Study Assessment .................................................................................................... 7

Methodology and Approach ..................................................................................................................... 8

Limitations ................................................................................................................................................ 9

Key Findings and Recommendations ........................................................................................................ 9

Findings ..................................................................................................................................................... 9

Recommendations .................................................................................................................................. 11

Structure of Report ................................................................................................................................. 12

Chapter One ................................................................................................................................................ 13

1.1 Market Analysis ........................................................................................................................... 13

1.2 Customer Analysis ....................................................................................................................... 14

1.3 Product and Price ........................................................................................................................ 15

1.3 Promotion and Place ................................................................................................................... 16

Chapter Two ................................................................................................................................................ 17

2.1 Market Opportunities ................................................................................................................. 17

2.1 Key Constraints to Growth .......................................................................................................... 18

2.3 Energy Utilization by Province .................................................................................................... 18

2.4 Energy Sources and Utilization .................................................................................................. 19

2.5 Priority Uses of Biogas ................................................................................................................ 20

Chapter Three ............................................................................................................................................. 21

3.1 Solar Energy Installation Technicians .......................................................................................... 21

3.1.1 SWOT Analysis ..................................................................................................................... 21

3.1.2 Opportunities and Threats .................................................................................................. 22

3.1.3 Strengths and Weaknesses ................................................................................................. 23

3.2 Agro-Dealer Network .................................................................................................................. 23

3.2.1 SWOT Analysis ..................................................................................................................... 24

3.1.2 Opportunities and Threats .................................................................................................. 25

4 | P a g e

3.1.3 Strengths and Weaknesses ................................................................................................. 25

Chapter Four ............................................................................................................................................... 26

4.1 Livestock and Horticulture Contribution to Biogas and Slurry Uptake ...................................... 26

4.2 Livestock Sector ......................................................................................................................... 26

4.3 Horticulture Sector...................................................................................................................... 27

Investment Opportunities ........................................................................................................................... 30

Potential Investment in Feed Production ............................................................................................... 30

Potential Partnerships............................................................................................................................. 32

Conclusion ................................................................................................................................................... 33

References .................................................................................................................................................. 34

Appendices .................................................................................................................................................. 35

Appendix I: Biogas and Bio-Slurry Value Chain/Market Analysis Agro-dealers & Farmer Associations

Checklist .................................................................................................................................................. 35

Appendix II: Biogas and Bio-Slurry Value Chain/Market Analysis Focus Group Discussion Interview

Guide ....................................................................................................................................................... 36

Appendix III: Biogas and Bio-Slurry Value Chain/Market Analysis Key Informant Interview Guide ....... 38

Appendix IV: Biogas and Bio-Slurry Market Analysis - Financial Services Providers Questionnaire ....... 39

Appendix V: List of Key Informant .......................................................................................................... 41

Appendix VI: List of Focus Group Discussion .......................................................................................... 43

5 | P a g e

List of Acronyms AD Agro-dealer

CIF Cost, Insurance and Freight

DACO District Agricultural Coordinator

E4A Energy for Agriculture Project

FGD Focus Group Discussion

FOB Free On Board

MFI Micro-Finance Institution

MSME Micro, Small, Medium Enterprise

MW Mega Watts

NGOs Non-Governmental Organizations

SADC Southern Africa Development Community

SAO Senior Agriculture Officer

SNV Netherlands Development Organization

ToR Terms of Reference

USD United States Dollar

VC Value Chain

ZESCO Zambia Electricity Supply Corporation

ZMW Zambian Kwacha

ZOCS Zambia Open Community Schools

6 | P a g e

Executive Summery

Introduction

Zambia is endowed with vast natural resources and among them are water bodies that have been

used to generate hydroelectric power. The electricity feeds into the domestic market and the

conglomerate mining sector in the economy. The potential of hydro power capacity from these

water bodies is estimated at 6,000 MW but only a third of generation potential is utilized through

the power utility company ZESCO. ZESCO is involved in generation, transmission, distribution and

supply of electricity. 10% of the generated electricity in the country is from private mining

companies for back-up purposes. An estimated 25% of the Zambian population has access to

electricity with only 6% accessed by the rural population. According to the Zambia Development

Agency, the demand for electricity in the country has been growing at an average of about 3%

per annum. Despite the increasing demand for power in the domestic and commercial sector,

generation has remained stagnant due to lack of investment and the negative impact of climate

change. Private sector engagement in generation has been low due to the low tariffs that do not

attract investment in the sector. Zambia’s electricity tariffs remain one of the lowest in the SADC

region. In light of the status quo of the energy sector in Zambia; sustainable renewable energy

sources are a vital need among the masses. Renewable energy sources are important to a

sustainable energy sector particularly for the rural population. Solar energy has developed over

the years with the private sector actively participating in the sector. The other alternative

renewable energy source is biogas that through anaerobic digestion produces methane for

lighting, heating and cooking. The by-product from the anaerobic digestion of manure is a quality

organic fertilizer that can be used in horticultural crop production. Biogas is relatively a new

concept on the Zambian market as compared to the Asian and African biogas sector that counts

thousands of biogas installations achieved over the years. Asia has advanced the technology

through promotion among small scale rural households who have installed the biogas digesters.

Given the important role energy plays in socio-economic and social cultural development among

the rural populace; SNV through the E4A project and in collaboration with AgriProFocus are

implementing an innovative rural development programme focusing on renewable energy in

7 | P a g e

Zambia. The project is designed to promote biogas and bio-slurry by means of anaerobic digesters

constructed in rural communities in response to the negative environmental impact caused by

climate change. Additionally biogas has health benefits and resultsin a clean environment hence

making it the most ideal among the renewable energy sources. Rural households have an

opportunity to access alternative green sources of energy by means of the digesters. The project

redesigned the digester to suite the local conditions and standards which has since been dubbed

the “Zamdigester”. The technology is enhancing livelihoods through increased savings on fuel

and income generation from the productive use of biogas and bio-slurry. The project envisions

the development of the market by triggering consumer demand through promotion and access

to finance. The project is further facilitating development of the supply chain of the Zamdigester

and productive appliances through skills development and results based finance incentives. The

approach fosters creation of an enabling environment that supports market development hence

catalyzing uptake of the innovation.

Objective of Market Study Assessment

The overall objectives of market study assessment was to identify the challenges; highlight the

opportunities and key upgrades for the successful uptake of biogas and bio-slurry in the

agriculture sector in Zambia. Specific objectives were as follows:

1. Provide summarized industry, market, competitive and customer analysis including;

market size, production figures, and basic pricing information of other energy sources

(including renewable energy options) available to farmers, in relation to the potential of

biogas/bio slurry products, in the targeted sectors and areas.

2. Identify and analyze market opportunities; namely preferred uses for biogas and bio-

slurry that stakeholders should prioritize in specific markets.

3. Identity and analyze (strength, weaknesses and opportunities) the potential of available

marketing hubs as channels to market the uptake biogas and bio slurry. This includes

potential hubs – entities that work with farmers – such as agro-dealers, cooperatives, and

service centres in the target sectors and areas.

8 | P a g e

4. Identify gaps and analyze investment opportunities to improve uptake of biogas and bio-

slurry use within Zambia’s energy sector, in relation to the Poultry, Dairy, Pig and

Horticulture markets.

5. Recommend next steps in the form of solutions, investment areas, possible partnerships

required to promote and market productive use of biogas and bio-slurry to increase

demand for biogas technology.

Methodology and Approach

The consultant employed both qualitative and quantitative data collection methods to advance

a robust bio-gas and bio-slurry market development strategy. Focus group discussions were

conducted with farmers, face to face interviews and key informant interviews were also

conducted. The Eastern and Central Provinces formed the sample frame for participants in the

study. Specific districts visited where; Lundazi, Chipata, Chadiza, Katete and Petauke. In central

Province, the districts visited where; Mumbwa, Chisamba, Chibombo, Kabwe and Kapiri Mposhi.

Targeted sources of data and information included Ministry of Agricultural and Livestock district

officials, masons, agro-dealers, cooperatives, financial institutions, the Poultry and the Dairy

Associations of Zambia.

Literature review of E4A project documents was done with addition to policy documents, papers,

and strategies to have an in-depth understanding of the project and the Governments position

on renewable energy in Zambia. In addition, the consultant applied the value chain analysis

approach to prioritize and select the most viable enterprise that could greatly contribute to the

uptake of biogas and bio-slurry innovation. The approach was used to identify the push and pull

factor of the supporting value chains to the uptake of the biogas and bio slurry sector.

Additionally, the approach aided in identifying the challenges, market based solutions and

potential key up-grades required to enhance the sector.

9 | P a g e

Limitations

The consultant encountered a number of limitations in his pursuit to fulfill the requirements of

the ToRs; these were the inconsistent statistical data and information from Government

Ministries on population of the dairy, piggery and poultry livestock enterprises. The current

livestock population is based on the last livestock census that was conducted in 2010. Updates

that have been made thereof are based on estimations and from specific district reports.

Horticulture data in all the sites visited was almost nonexistent in terms of the number of farmers

engaged in the VC despite the evidence from the FGDs that the sector employs a good number

of farmers because of its quick returns compared to other agricultural crop enterprises. The

period of conducting the assessment proved a challenge as most of the targeted participants

were harvesting their field crops and hence we could not meet with some farmers. This was

almost a common trend in all the sites visited.

Key Findings and Recommendations

Outlined below are the key findings and recommendations from the biogas and bio-slurry market

study.

Findings

1. The biogas and bio-slurry value chain has two marketing channels; the masons and

supervisors marketing channel. These channels are incapable of effectively forming a

critical mass to stimulate demand for the Zamdigester. The masons expressed their

Mason and Supervisors

The masons and supervisors are a cadre of trained people on the biodigester

technology. These are drawn from the community and have skill sets such as

constructing, painting and plumbing while the supervisors are from the

community development and agriculture backgrounds. Their role of the

masons is to construct the biodigester with direction from the supervisors who

are quality control officers to ensure that the correct specifications and

parameters of construction of the digesters are adhered to. The masons and

supervisors are the marketing channels for the biogas value chain.

10 | P a g e

inability to effectively market the product because of lack of transportation coupled with

the wide coverage area of their catchment area;

2. Private sector involvement in the bio-gas and bio-slurry sub sector is very low to almost

none existent. Only one company has shown interest to participate as an appliances

manufacturer and supplier;

3. Limited information on the use of biogas and its benefits at house hold level. In almost

all the FGDs conducted, the majority of the participants had heard of biogas and bio-

slurry from the awareness meetings conducted by E4A project in their communities;

4. Limited information on the use and benefits of bio-slurry in horticultural crop

production. The attachment of a pit latrine to the digesters system has been received

with mixed feelings by the farmers. There might be a possibility that the use of the slurry

in horticultural production may be hindered by the perception. Most farmers missed the

point that that attaching a toilet to the digester was not compulsory;

5. The cost of Zamdigesters is perceived to be expensive among small scale farmers which

may hamper uptake of the technology;

6. Lack of affordable credit to finance the purchase of the Zamdigester for biogas and bio-

slurry production is an impediment to the uptake of the technology;

7. An under developed dairy sector in Eastern Province may hinder uptake of the

technology. The province has only one milk collection centre located in Chipata. Heifer

International Zambia supported farmers with 65 Friesian pure breed dairy animals and

only 15 animals are surviving. In addition Eastern Province lacks a milk processing facility;

a vital end market function that can stimulate growth of the sector;

8. Central province has a vibrant dairy sub-sector with functional raw milk bulking systems

through the milk collection centres which are supplied by the small scale and emergent

farmers. The centres are feeding into the main processors in Zambia. Zambeef and

Parmalat are the main end markets in the dairy value chain;

9. Cattle, Pigs and Poultry management systems in eastern province are mainly free

range/open grazed while in Central Province intensive and semi-intensive management

systems are practiced. The potential for the dairy, poultry and pig value chains

11 | P a g e

contributing to the uptake of the biogas and bio-slurry value chain in Eastern Province is

very low. However, the horticulture value chain could greatly benefit from the slurry in

Eastern province;

10. Despite a number of financial institutions providing agricultural financing and credit in

livestock enterprises, very few farmers are aware of such facilities. Those who have

knowledge of existence of such facilities do not know the process of accessing one.

Recommendations

Micro finance institutions to provide parallel credit facilities with other competitive value

chains like dairy, piggery and horticulture. I.e. for every loan accessed whether for a dairy

cow or horticultural crop; different sizes of digesters can be attached to the product. A

farmer will have a choice on which option to pick. The cost of the digester will be

imbedded in the loan products accessed. The approach will stimulate demand that will

foster the Zamdigester purchase by farmers. Vision Fund an MFI is offering a dairy animal

loan and horticulture loan with repayment periods of 24 months for the former and

between 3 to 6 months for the latter. Over 2 million kwacha worth of dairy and

horticulture loans have been given out in the past 4 years;

Increase the marketing channel for the Zamdigester through the agro-dealer network.

The network has the potential and ability to aggregate demand, offer after sales services

and biogas accessories. It can further facilitate supply of horticultural and livestock inputs

and has the ability to commercially add value to the end market for the dairy, piggery and

horticulture value chains. The network is well positioned and can facilitate smallholder

farmer households’ access to inputs and output markets and other agri-services. They

have the potential to exploit business linkages with private sector companies as they can

take title of products/technologies and share risks with farmers and private sector

companies;

Develop a business case for the Zamdigester in relation to the dairy, piggery and

horticultural enterprises;

Facilitating community based centres of excellence that will act as demonstration sites.

The sites will showcase horticultural crop production by means of the bio-slurry and uses

12 | P a g e

of biogas for lighting, heating, cooking and electricity generation via a gas generator.

These centres will highlight the benefits of installing the Zamdigester;

Formulate an innovation investment fund that is targeted at the private sector as an

incentive to participate in the value chain as accessory suppliers. This can be achieved

through start-up matching grants.

Develop a reward system that will be managed by a financial institution that will service

clients that service the loans within the agreed time frame. Rewards such as seed packs,

transportation and health cover can be considered. The innovation will stimulate the

demand for the digesters through provision of affordable credit;

Develop a marketing campaign through community social activities. As much as the

traditional awareness communication strategies have worked that hinge on community

meetings; social events like football can be more effective in creating awareness and

marketing of the Zamdigester. It was observed during the study that soccer plays a vital

role in the targeted communities hence can be used as a vehicle to market the digesters.

The project can organize tournaments through partnerships with organizations that work

in that sphere. In principle, it is having fun while you go.

Structure of Report

The report consists of five chapters that highlight specific objectives of the study. The first chapter

provides information on the energy sector with a summarized outlook on the market,

competitiveness and customer analysis. The chapter further shows the market size, production

figures, and basic pricing information of other energy sources including renewable energy

options available to farmers, in relation to the potential of biogas/bio slurry products, in the

targeted sectors and areas.

The second chapter identifies and analyzes the market opportunities available in the biogas and

bio-slurry value chain. The chapter sites the preferred uses for biogas and bio-slurry that

stakeholders should prioritize in specific markets.

13 | P a g e

Chapter three depicts the SWOT analysis of the biogas and bio-slurry value chain. It Identifies and

analyzes strength, weaknesses and opportunities the potential of available marketing hubs as

channels to market the uptake of biogas and bio slurry.

Chapters four identifies the gaps and analyzes the investment opportunities to improve uptake

of biogas and bio-slurry use within Zambia’s energy sector, in relation to the Poultry, Dairy, Pig

and Horticulture markets.

Chapter five and the last chapter recommends the next steps in the form of solutions, investment

areas, possible partnerships required to promote and market productive use of biogas and bio-

slurry to increase demand for biogas technology.

Chapter One

1.1 Market Analysis

Renewable energy is quite a new concept in Zambia with potential for growth given the right

opportunity. Solar energy seems to be growing steadily among the target group. Solar systems

are mostly used for lighting and powering electrical appliances. ZDA estimates that

approximately 70% of the solar market is dominated by Government, NGOs and other donor

funded projects with the World Bank (WB) being the largest financing agency in the sector.

Approximately 166,748 households have the potential of installing a biodigester. This translates

into the Zamdigester having an estimated USD 86 million sales volume. This is for the 6 cubic

metre digester, the most demanded and that farmers have interest in. The market has the ability

to generate an estimated USD 19 million and USD 16 million worth of skilled and unskilled labour;

creating employment and hence improved livelihoods. Solar energy products and accessory sales

are estimated to be in the range of USD 2 million to USD 3 million per annum.

During the study, it was learned that farmers use on average of 2 bags of basal dressing fertilizer

and 2 top dressing fertilizer in a single production cycle. This translates into approximately USD

280 worth of fertilizer which could be saved for use on other cost items like seed in production.

14 | P a g e

1.2 Customer Analysis

Eastern and Central provinces (Census, 2010) have a rural population of 1,392,338 and 978,574.

23.0% of the targeted group own cattle in Eastern province, while 57.8% own pigs. 15.7% of the

population in central province own cattle while the other 4.3% are pig owners. The potential

customers are segmented as follows:

Province HH Owning Livestock

Cattle Pigs

Eastern 53,373 134,129

Central 25,606 7,013

Grand Total 78,979 141,142

Table 1: Potential Market Segment per Province

These figures give a descriptive potential that lies untapped for biogas uptake. As shown earlier,

the management practices and under developed dairy sector in eastern province may hamper

the marketing of the Zamdigester as the cattle population mainly consists of beef. However,

participants of the FGDs expressed interest in the technology. Some had indicated that they have

changed their management practices from free range to intensive management. This is an

indication that improved management practices can be adapted by the segmented market.

It was observed during the study that a number of farmers exhibited risk aversion towards the

Zamdigester. They emphasized the need of having demonstration sites for a firsthand experience

of the digester. Uncertainty played a major role as almost all respondents interviewed had only

heard of Zamdigester during the sensitization meetings conducted by the E4A team. It is

important to note that the target group wanted to see if the technology works before they could

invest in it. In all the FGDs the consultant conducted, respondents indicated that demonstration

sites be established for the Zamdigester so that they could see for themselves if the product

works and its benefits. This was a form of risk management especially with the price attached to

the product.

15 | P a g e

1.3 Product and Price

The Zamdigester has been redesigned to adapt to the Zambian conditions hence the name and

cost structure. The rationale of redesigning the original CARARTEC design was to ensure that the

cost of the digester is affordable to the majority of the targeted customers. The result of the

redesigning exercise is a 15% to 20% reduction on the cost of the digester. It is believed that the

product can be developed further to relate with the targeted market through branding. The

Zamdigester is a product used and meant for the Zambian people. The product is intended for

the rural setting and hence important to find an appropriate name to describe what the digester

can do. It was generally observed that the people referred to biogas as, “Magesi” or “Malaiti”

meaning energy or power in the local language. The consultant recommends that the

Zamdigester is given a model name according to the size of the product as suggested in the table

below:

Table 2: Brand and Model Currency is in Zambian Kwacha.

# Product Name Model Specifications/Use Price (ZMW)

4 Cubic Metre

Bio-slurry

20-40 kg Manure/Day

0.8-1.6 Cubic Metres of Biogas/day

6 Cubic Metre

Bio-slurry

40-60 kg Manure/Day


9 Cubic Metre

Bio-slurry

60-90 kg Manure/Day

2.4 -3.6 Cubic Metres of Biogas/day

14 Cubic Metre

Bio-slurry

100-140 kg Manure/Day


21 Cubic Metre

Bio-slurry

150-210 kg Manure/Day


6,848.00

8,405.00

11,377.00

Magesi 3

Magesi 4

Magesi 5

3

4

5

Zamdigester

Zamdigester

Zamdigester

Zamdigester

Zamdigester1 Magesi 1 4,189.00

2 Magesi 2 5,266.00

16 | P a g e

1.3 Promotion and Place

The current promotion strategies which include community awareness meetings, field visits and

individual farmer soliciting can incorporate other strategies to enhance awareness of the

technology and the digester as a whole. These can include:

Establishment of demonstration sites as community based centres of excellence that

will showcase uses of biogas for lighting, heating, cooking and electricity generation

via a gas generator and horticultural crop production by use of bio-slurry as a fertilizer;

Use of agricultural events like shows and exhibitions that target small scale farmers;

Radio programming that highlights testimonies of the benefits of using biogas and bio-

slurry from farmers that have installed the digesters. An example could be Mrs.

Ng’ambi from Mpima in Kabwe District;

Using social events like football can be more effective in creating awareness and

marketing of the Zamdigester. It was observed during the study that soccer plays an

important role in the targeted communities hence can be used as a vehicle to market

the digesters. This can be done through dressing up teams with branded jerseys or

sponsored tournament. The masons and supervisors can be the managers of such

events as marketing channels of the product.

17 | P a g e

Chapter Two

2.1 Market Opportunities

The aim of the project is to increase adoption of biogas and bio-slurry use among small scale

farmers by increasing demand of the technology. This will be achieved through increased

ownership and production of the dairy, piggery and horticulture value chains. Increased demand

of the produce from the value chains at the end market will foster growth in the sectors. Growth

in the value chains increases the potential for the biogas and bio-slurry uptake. Increased

demand will warrant entry of the private sector through the agro-dealer network to market, offer

after sale services and subsequently lead in the sector. To achieve this, the following key

upgrades are needed:

Increased investment in the private sector through matching grants mechanisms as

incentives to venture into the sector on bases of a 40/60 percentage ratio from the

project and private sector. This will encourage participation of the private sector into the

green energy value chain. The matching grant incentive can be done in the first year only

as a means of kick starting participation of the private sector;

Establish schemes through commodity and trading companies working with small scale

farmers on forward contract bases as a means of integrating bio-slurry in their crop

rotation activities;

Production of fish feed by pelletizing composted bio-slurry in ten sites of the project area

to feed into the aquiculture value chain;

Introduction of a marketing channel through the agro-dealer and other renewable energy

installers;

Enhance business skills to agro-dealers and other renewable energy installers to diversify

their product and service portfolio to include biogas and bio-slurry appliances.

This will result in the following:

Increased productivity in the supporting value chains;

Greater access to credit;

Increased private sector participation;

Increased market for products of supporting value chains;

18 | P a g e

Increased market access;

Enhanced market information flow;

Increased household incomes, food security and nutrition.

2.1 Key Constraints to Growth

A number of factors hindering growth of the biogas renewable energy sector were identified.

Among them were the following:

Limited information on the use of biogas at household level and benefits of bio-slurry in

horticultural crop production;

High cost of biogas digester installation as perceived by the targeted group;

Livestock management systems that do not facilitate manure collection;

Lack of finance institutions offering credit for the uptake of the technology;

Lack of commercial milk processing facilities in Eastern Province of Zambia;

Limited number of milk collection centres in Eastern Province of Zambia;

Limited marketing channels of the biogas technology and after-sale services;

2.3 Energy Utilization by Province

The provinces in focus have varied energy sources used for different purposes at household level.

The energy sources outlined below were derived from the FGDs and Key informant interviews

conducted by the consultant. Among the energy sources are:

Electricity

Wood

Charcoal

Solar

Diesel

The energy sources are predominantly used for lighting, cooking and heating. The pie charts

below show the distribution of the households accessing and using the above mentioned energy

sources for lighting, cooking and heating.

19 | P a g e

2.4 Energy Sources and Utilization

Figure 1: Energy Sources (Authors computation)

Firewood as an energy source is accessed and used by 35% and 33% of the households in both

Eastern and Central Provinces. Charcoal accounts for 28% in Eastern Province and 26% in Central

Province. Solar energy is accessed and used by 21% of the households in both provinces mainly

for lighting, powering electrical appliances and charging cell phones. 13% and 17% of households

in the respective provinces have access to electricity and using it for cooking, lighting, powering

electrical appliances and heating. Diesel only accounts for 1% and is used for lighting. Diesel was

only mentioned as an energy source in Eastern Province specifically in Petauke District. Central

province accounted for approximately 3% of households as accessing energy from biogas

specifically in Chibombo and Kabwe Districts. The biogas digesters referenced were both installed

by SNV through the E4A project for the one in Kabwe and the one in Chibombo through an earlier

SNV project that closed. In both provinces, solar energy has a fair share of use among households;

this could be a precursor to biogas use at household level.

35%

28%

21%

0% 13%

3%

Eastern Province HH Energy Sources

Firewood Charcoal Solar

Biogas Digester Electricity Diesel

33%

26%

21%

3%17%

Central Province HH Energy Sources

Firewood Charcoal Solar Biogas Digester Electricity

20 | P a g e

Item Firewood Charcoal Solar Biogas Digester Electricity

Cost 2,000.00

1,536.00

7,724.00

7,217.00

1,500.00

Use Cooking Cooking Electricity Cooking Cooking

Heating Heating Lighting Lighting Lighting

Heating Heating Heating

Electricity generation

Powering devices and appliances

Fertilizer

Insect repellant

Fish Feed

Animal feed

Mushroom substrate

Maintenance Costs

Repeat cost Repeat costs Change batteries between 2 to 5 years

One off payment and works up to 20 years and more

Prepaid costs

Table 3: Comparable Costs of Energy Sources (Authors computation)

2.5 Priority Uses of Biogas

Given the above analysis, priority uses of biogas can focus on the following:

Cooking: business opportunity of investing in gas cooking appliances and other

appliances;

Lighting: business opportunity of investing in lighting appliances;

Heating: business opportunity of investing in heating appliances and accessories;

Electricity generation: business opportunity of investing in gas generators that will

generate electricity for powering electrical appliances like TVs and radios. Has the

potential to stimulate start-up business such as barbershops, salons and welding.

Priority uses for bio-slurry are:

Fertilizer application- In horticulture production; both in organic and conventional

production;

Fertilizer application integrated into conservation agriculture;

Fertilizer application in pasture production in the dairy sector

21 | P a g e

Feed supplement in fish farming.

There is some significant aquiculture practiced in central province and farmers are using pig

manure to supplement feeding of the fish in ponds. This creates an opportunity for the slurry in

the sector.

Chapter Three

3.1 Solar Energy Installation Technicians

The installation technicians of other renewable energy sources is another viable additional

marketing channel to the existing ones. These are already in the business of installing the other

energy sources like solar and appliences hence well positioned to play an active role in the

increase in demand of the Zamdigester. This will be an added service and product line to their

portifolio with the potential to increase their business revenue. The advantage with the proposed

marketing channel is that they are already engaged in the renewable energy sector hence need

extensive training in the technology.

3.1.1 SWOT Analysis

Strengths

Engaged in the renewable energy

sector,

Strategically located within the

farming community;

Able to provide after-sale services;

Skilled and understands the sector;

Can easily have access to back-up

spares and other supporting services;

Commercially driven;

Weaknesses

Lack of business skills to venture into

the new business;

Lack of transport for outreach

marketing activities;

Limited partnerships with other

marketing channel actors.

22 | P a g e

Opportunities

Large number of HH with livestock;

Potential buyers of the Zamdigester;

Target groups desire for knowledge on

the digester.

Threats

Lack of private sector firms providing

appliances and accessories for biogas;

Demand for other renewable energy

sources;

3.1.2 Opportunities and Threats

a) Opportunities: The large numbers of the HH owning livestock in the targeted marketing

areas present an opportunity for the uptake of the biogas and bio-slurry value chain. The

dung from the animals is the feeding material for the digesters. These households are

potential buyers of the Zamdigester and likely to adopt because of the availability of the

dung. The desire for information on the biogas digester and the benefits of biogas and

bio-slurry presents an opportunity for increased demand of the technology. The group is

well positioned as they are already skilled and require little training in biogas. Their

background enables them to offer technical after-sale and back-up spares services to their

clientele. Additionally, they have an opportunity to offer expert advice on the sustainable

maintenance of the digesters to fully appreciate its benefits. Their skills and knowledge in

the sector anchors the trust of the potential customers to gain confidence in the

technology and hence will increase demand for the Zamdigester.

b) Threats: Lack of private sector firms providing appliances and other accessories for the

biogas subsector may be an impediment to the growth of the value chain. Targeted clients

will need appliances such as gas cookers, lamps and water heaters to fully utilize the gas.

If these cannot be easily accessed then uptake will be negatively affected. Demand for

other renewable energy sources in particular solar energy is a probable threat to the

biogas technology uptake. Solar energy use in both provinces is at 21%.

23 | P a g e

3.1.3 Strengths and Weaknesses

c) Strengths: The operational area of the installers is strategically located within the

targeted market catchment areas creating an opportunity for them to segment the

market for the Zamdigester. This creates visibility of the potential marketing channel to

attract interest in the technology from farmers. The group is well positioned as they are

already skilled and require little training in biogas. Their background enables them to offer

technical after-sale and back-up spares services to their clientele. Additionally, they have

an opportunity to offer expert advice on the sustainable maintenance of the digesters to

fully appreciate its benefits. Their skills and knowledge in the sector anchors the trust of

the potential customers to gain confidence in the technology and hence will increase

demand the Zamdigester.

d) Weaknesses: Currently the biogas and bio-slurry value chain speaks to two marketing

channels. These are not adequate to stimulate high demand for the sector. Coupled with

the large catchment area and the lack of transportation for the masons, has proved to be

a serious impediment to the development of the sector. Lack of business skills in the

biogas and bio-slurry sector may lead to the slow implementation of the business venture

by the installers to exploit the potential market. There is need for all the marketing

channel actors to be linked and coordinate with each other to fully harness the potential

market as it large.

3.2 Agro-Dealer Network

The agrodealer network is the perfect vehicle to advance the renewable energy sector by creating

a business model that will act as an incentive to attract other actors in the value chain. Currently,

only two marketing channels for the uptake of biogas exist which are the masons and supervisor

marketing channels . These are not adiquite to stimulate high market demand. With the inclusion

of the AD network, the potential to increase demand for the Zamdigester are high through

interaction with the target group.

24 | P a g e

3.2.1 SWOT Analysis

Strengths

Strategically located within the

farming community;

Frequent interaction with the farmers

who are potential buyers of the

Zamdigester;

Facilitate access to inputs and output

markets and other agri-services;

Able to form linkages with the private

sector;

Commercially driven network;

Can take title of products or

technologies and share risks with

farmers;

Legally recognized entities.

Weaknesses

Lack of knowledge on the Zamdigester

and technology as a whole;

Lack of transport for outreach

marketing activities;

Low capacity in inventory,

management, entrepreneurial skills

and marketing.

Opportunities

Large number of HH with livestock;

Potential buyers of the Zamdigester;

Target groups desire for knowledge on

the digester.

Located within the AD network

catchment areas;

Offers agri-services and inputs for

livestock and horticulture value chains

that contribute and benefit from the

Zamdigester;

Well positioned to aggregate demand

for products from the supporting value

chains.

Threats

Livestock disease outbreak;

High horticultural fresh produce price

volatility i.e. Tomato;

Lack of private sector firms providing

appliances and accessories for biogas;

Demand for other renewable energy

sources;

25 | P a g e

3.1.2 Opportunities and Threats

a) Opportunities: The agro-dealer operates within the catchment of the potential clientele

offering agri-services and inputs for livestock and horticulture value chains that

contribute and benefits from the Zamdigester. It was observed during the study that the

farmers desire more information on how the digester works and its benefits. Their

request to have demonstration digesters installed in various areas of the communities

indicates the willingness to invest in the technology. The agro-dealer network participates

in the end market as aggregators of commodity hence creating an opportunity for the

farmers to purchase the Zamdigester and appliances using crop commodities like maize

and soya beans.

b) Threats: The only probable threat for the proposed marketing channel not to function is

in an event that there is a disease outbreak that will result into high livestock mortalities

that will hinder uptake of the biogas technology. This is unlikely to occur due to the

measures put in place by government to systematically and routinely conduct diseases

surveillances in accordance to seasonality in the year. Horticultural price vitality has

always been there and the market forces have always stabilized the situation. The project

can encourage the farmers to spread their production cycles and diversify into multi crop

varieties through bio-slurry use to counter such shocks.

3.1.3 Strengths and Weaknesses

The Zamdigester has a number of strengths that will enable it to favorably compete in the market.

a) Strengths: The agro-dealer network is comprised of legally established firms that are

commercially driven by earnings of profits. The network has the ability to interact with

the private sector and the small scale farmers hence forth creating linkages between the

two for a sustainable input/output agriculture sector. Through this interaction, the

network facilitates agri-services that could greatly contribute to the bio-slurry uptake

through supply of vegetable seeds, packaging materials and other services.

26 | P a g e

b) Weaknesses: Currently the biogas and bio-slurry value chain speaks to two marketing

channels. These are not adequate to stimulate high demand for the sector. Coupled with

the large catchment area and the lack of transportation for the masons, has proved a

serious impediment to the development of the sector. Additional marketing channels

through the agro-dealer network and other renewable energy installers will increase the

demand for the product. However, these weaknesses are addressable and will be

improved over time.

Chapter Four

4.1 Livestock and Horticulture Contribution to Biogas and Slurry Uptake

Biogas and bio-slurry production depends on the feed material from animal dung hence the

importance of the livestock sector in the energy value chain. The increase in population of

livestock creates a potential function for the uptake of the biogas and bio-slurry technology

among the small scale farmers. The livestock subsector essentially creates an enabling

environment for the uptake of the biogas and bio-slurry through the installed digesters. For the

purpose of this study, three livestock value chains were proposed. These are dairy, poultry and

piggery livestock enterprises.

4.2 Livestock Sector

Figure 7: Central Province & Eastern Province Livestock Population (Source: Ministry of Livestock)

- 1,000,000 2,000,000 3,000,000

Dairy

Pigs

Poultry

Dairy Pigs Poultry

Total 14,959 89,661 2,620,724

Livestock Total

- 200,000 400,000 600,000 800,000 1,000,000

Dairy

Pigs

Poultry

Dairy Pigs Poultry

Total 15 251,820 889,006

Livestock Total

27 | P a g e

The bar chart above shows the total population distribution of the dairy, poultry and pig value

chains in Central and Eastern provinces. The poultry value chain is in excess however most of it

falls under the village chicken category. Pigs rank second in both provinces and the dairy sector

is in third position. It must be noted that, the statistics available on livestock are based on ministry

reports since the last livestock census was conducted in 2010. The consultant used statistical data

of the proposed value chains coupled qualitative results from the FGDs conducted in each

province to arrive at which enterprises could greatly contribute to the development of the energy

sector. The dairy and the pig value chains are the most viable enterprises with the highest

potential of contributing to the uptake and market development of the sector. The poultry value

chain has a very high population and is predominantly comprised of the village chicken sub

sector. The management commonly practiced in the village chicken sub sector is the free range

management practice. However the numbers reared are unable to produce enough droppings to

feed into the digesters unless the management systems are changed to semi-intensive to allow

for collection of the droppings. The other demerit is that the dip litter system used in broiler

production is not ideal as feed material for the digesters. It may be fed into the system in

combination with other sources of dung from dairy cattle or pigs but with potential challenges of

clogging the system. Small scale farmers engaged in egg production in the targeted areas are very

few and in all cases data on them was difficult to gather.

Therefore the consultant proposes that the livestock enterprises that can greatly contribute to

the uptake of the Zamdigester are:

1. Dairy sector in particular Central province,

2. Piggary in both provinces;

4.3 Horticulture Sector

Eastern and Central provinces have favorable climatic conditions to support growth of a variety

of horticultural crops. The produce is consumed locally in both provinces and the surplus is

shipped to other parts of the country. Eastern province horticulture produce finds its way into

Malawi, and then it’s brought back into the country enroute to Soweto market. Tomatoes in

28 | P a g e

Zambia are traded through the informal marketing channels; 92% of tomato and onion purchases

are sold in open air retail markets. (Hichaambwa, 2010).Soweto market is a hub for both imports

and exports. Traders from Lusaka travel to Chipata and buy directly from farmers. Soweto

wholesale traders control the market for fresh produce. Soweto market is the largest open

market in the country and acts as a hub for fresh produce in the country. Prices of produce at

Soweto market determine the commodity prices in other parts of the country.

Horticulture producers in Central province can easily access premium markets for their produce.

Like their counterparts in Eastern province; their produce finds its way outside the borders of the

country in particular Congo DR through Kasumbalesa border post. This end market offers

premium prices compared with Soweto market. Additionally, the road networks into the urban

centres are easily accessible hence can easily ship their produce to these centres. The prominent

crops grown in both provinces are as follows:

Tomatoes

Onion

Water melons

Okra

Rape

Carrots

Chinese cabbage

Cabbage

Impwa

Egg plants

Winter maize

The average area of production in Eastern province is estimated at about half a lima to a lima

while in Central province it is estimated to be in the range of half a lima to 2 limas.

29 | P a g e

Figure 8: Prominent Horticultural Crops in Central Province (Authors Compilation)

Tomato is the most commonly grown horticultural crop in the central province at 33% followed

by rape at 21%. Water melons and cabbage take the third slot at 16% each and at the end is onion

at 14%. It was learned during the study that, water melons on the market both in the super

markets and open markets originate from central province.

Figure 9: Prominent Horticultural Crops in Eastern Province (Authors Compilation)

33%

21%16%

16%

14%

Prominent Horticultural Crops

Tomato

Rape

Water Melon

Cabbage

Onion

30%

30%

17%

15%

1% 4% 3%

Prominent Horticultural Crops

Tomato

Rape

Cabbage

Onion

Chinesse Cabbage

winter maize

carrots

30 | P a g e

Tomato and rape dominant the value chains with each securing 30% of the market share.

Cabbage accounts for 17% followed by onion at 15%, then winter maize, carrots and Chinese take

up 4%, 3% and 1% respectively.

Investment Opportunities

Potential Investment in Feed Production

Potential Investment in the fish feed industry by use of bio-slurry as a feed supplement in fish. It

is estimated that fish makes up 40% of annual protein in the diet of Zambians. It is currently

estimated that the annual fish production is about 70,000 tons, and the national demand stands

at 120,000 tons indicating a deficit of 50,000 tons. Rural aquaculture will contribute to bridge

the gap of the deficit.

The feed sector can exploit the bio-slurry sector through schemes of farmer households that have

installed the digesters. The focus will be on the collection of the slurry in form with the sole

purpose of pelletizing it into fish feed. Ten feed processing plants with a throughput capacity of

230kg-250kg/hour could be installed in communities with installed digesters. These plants will

act as a market for the slurry while supplying floating pellet feed for the fish industry in the

community.

31 | P a g e

Investment Item Feed pellet extruder for floating fish feed

Context The feed sector can exploit the bio-slurry sector through schemes of farmer

households that have installed the digesters. The focus will be on the collection

of the slurry in its compost form with the sole purpose of pelletizing it into fish

pellets.

Costs Investment Items Cost

Fish Pellet Extruder -320-350kg/h fish feed $100,000.00

Staff training - Plant operation

$10,000.00

Packaging Materials

$39,646.02

Staff costs $10,000.00

Transportation $15,000.00

Total Investment $174,646.02

Indicators Return on Investment 31%

Gross Profit Margin $5,375,796

Investment Payback Period 2-3 Years

Table 3: Investment Opportunity in Fish Feed production

32 | P a g e

Potential Partnerships

Organization Potential Partnerships

Muhanya Solar Limited

Partner in provision of appliances for the biogas use. The company is a leading

company in solar renewable energy accessories and equipment that can

easily enter the biogas energy sector. It is currently implementing a mini solar

grid in Sinda District of Eastern Province in Partnership with Musika and the

Government. 300 households are benefiting from the metered solar powered

mini grid.

Saro Agro Industries Ltd

Saro is a company dealing in agricultural equipment and machinery.

Partnership to support horticulture producers with equipment for spraying,

irrigation and the supply of other biogas appliances. They have an established

distribution network that spreads throughout the country through their

outlets and partners.

Musika A developmental organization that focuses on the end market of various

value chains. Musika facilitates value added relationships between corporate

and smallholder sectors in the agriculture sector. The organization has

invested in the technical capacity of the agro-dealer network in partnership

of ZEMA and Croplife. Their experience in this sector is second to none and

can be leveraged to make visible the Zamdigester and its benefits.

NutriAid Trust Currently implementing the SAIOMA project in Eastern and Central Provinces

of Zambia. The project is working with over 500 agro-dealers providing

technical and business skills to improve the management of their firms.

Additionally, the initiative has built the capacity of agro-dealers in

entrepreneurial skills to enable them cease opportunities that are identified

and offer a sustainable profit.

33 | P a g e

PROFIT+ Being implemented by ACDI/VOCA, PROFIT+ has established the community

agro-dealer network in Eastern province to improve the input and output

markets among small scale farmers. The project has trained over 300 of these

agro-dealers in different aspects regarding agriculture and community

lending methodologies. Possible partnerships could be linkages to the lending

groups for credit access.

Vision Fund An MFI providing credit to small scale and emergent farmers through group

guaranteed loans and individual asset loans. The MFI has products in the

dairy and horticulture sector with a repayment period of 24 months for the

dairy loan and between 3 to 6 months for the horticulture loan.

Aquaculture Firms

Target firms could be:

1. Yalelo a pioneer of aquaculture in Zambia, producing tilapia on the

shores of Lake Kariba.

2. Lake harvest Zambia Ltd with established retail outlets across the

nation.

Conclusion

The study generated interesting findings on the dynamics of the energy sector in Zambia.

Firewood and charcoal dominates as the energy sources commonly used among the targeted

group. Additionally, a good number of households have access to other renewable energy

sources like solar. The level of investment in green energy by Muhanya Solar Limited of investing

in a mini solar grid benefiting three hundred household shows the potential that the sector has

in improving livelihood in rural areas. The masons and supervisor marketing channels could do a

lot more if they had available transport for outreach marketing activities. The additional

recommended marketing hubs will aid in stimulating demand at household level. All the channels

will need to coordinate with each other to ensure that demand is increased. They all have unique

34 | P a g e

attributes which they need to leverage on each other to make a greater impact. Access to credit

is important to the sectors’ development. The enhancement of the supporting value chains like

dairy, piggery and horticulture will catalyze growth of the biogas and bio-slurry value chain. The

investment opportunities in the sector can be exploited by the private sector and hopefully can

have positive socio-economic impacts that improve livelihoods among the targeted group.

References

1. Central Statistical Office (2011), Living conditions Monitoring Survey Report 2006 and

2010

2. Central Statistical Office (2010), Census of Population and Housing National Analytical

Report

3. Central Statistical Office (2010), Census of Population and Housing: National Descriptive

Tables Volume 11

4. Hichaambwa, M. and Tschirley D. (2010), How are Vegetables Marketed into Lusaka? The

Structure of Lusaka’s Fresh Produce Marketing System and Implications for Investment

Priorities. June. (2)

5. Netherlands Development Organization- SNV (2012), Domestic Biogas Programme in

Zambia Feasibility Study

6. Zambia Development Agency (2014), Zambia Energy Sector Profile

7. Mariana Dumitru (2015),Scientific Papers Series Management, Economic Engineering in

Agriculture and Rural Development Vol.15, Issue 1

8. Longley. C, S.H. Thilsted, M. Beveridge, S. Cole, D.B. Nyirenda, S. Heck, and A. Hother, “The

Role of Fish in the First 1,000 Days in Zambia,” Institute of Development Studies,

(September 2014), 1-3.

35 | P a g e

Appendices

Appendix I: Biogas and Bio-Slurry Value Chain/Market Analysis Agro-dealers & Farmer

Associations Checklist

BIOGAS AND BIO-SLURRY VALUE CHAIN/MARKET ANALYSIS

AGRODEALERS & FARMER ASSOCIATIONS CHECKLIST

Name of interviewer: _________________________________ Date:

________________________

1.1. Company name: ___________________________________________

1.2. Address: ____________________________________________________________

1.3. Name and Title of Respondent:

____________________________________________________

1.4. Phone and Email of Respondent:

___________________________________________________

1.5. Company Director/Owner name:

_________________________________________________

1.6. Date of founding:

______________________________________________________________

1.7. Number of employees: __________ Number of women employees: __________

State the type of renewable energy technologies engaged in:

1.0 Market 1.1 What type of renewable energy sources are used in the community/Market?

1.2 What is the cost of these renewable energy sources?

1.3 What is the cost of maintaining the technology?

1.4 How many businesses are selling these technologies?

1.5 Apart from the mentioned technologies, do know of any other technologies?

1.6 If you were to decide to venture into a new business, would you be willing to venture

into renewable energy technologies like biogas?

1.7 If yes, what resources would you need to start the business?

36 | P a g e

1.8 Are you able to source for start-up capital for such a venture?

1.9 If yes, what is the source of your financing and what are the terms and conditions?

1.10 What capital requirements would you need to start the business? (Finance, Skills)

1.11 Will the customers be willing to purchase the technology from you?

1.12 How many will be willing to purchase the technology from you?

1.13 What challenges do you think can you have marketing the technologies?

1.14 What drivers do you think are there for more uptake of the technology?

1.15 How will you market the technology to your customers?

Appendix II: Biogas and Bio-Slurry Value Chain/Market Analysis Focus Group

Discussion Interview Guide


FOCUS GROUP DISCUSSION INTERVIEW GUIDE


________________________

1.8. Community Name: ___________________________________________

1.9. District: ____________________________________________________________

1.10. Number of Participants: __________ Sex: Male__________Female____________

A. Introduction

Introductions by name, where you are from and give the objectives of the FGD; Start the session by asking the kind of livelihoods people are engaged in and list them.

B. Livestock Value Chain – Dairy, Poultry and Pigs

Ask them on the livestock rearing, types of livestock and the rearing systems.

Who keeps the mentioned livestock?

37 | P a g e

How are they reared e.g. free range, semi intensive and intensive

Is there a market for the said value chains?

Where is the market and who buys?

Is there any manure produced by the said value chains?

How much of the manure is produced by the said value chains

On a scale of 1-10 which value chain gives more manure?

What is the manure used for

At this point ask the participants if they have any questions for you.

C. Horticulture Production

What types of crops are grown here

What size of land are the said crops grown on

Are there any horticultural crops grown in the area

Ask the participants to name them

On a scale of 1-10 which value chain is mostly grown and why?

What could be the cost of fertilizer for the ranked crops in producing it to harvesting time?

Where is the source of these fertilizers? Do you pay for transportation? If yes how much?

D. Renewable Energy Sources

What type of energy sources are used in the community

What are the sources of these energy sources

How often do they access these energy sources

On a scale of 1-10 which energy source is mostly used and why?

On a scale of 1-10 which sex (Male or Female) mostly uses the energy source and why?

What is the advantage of these energy sources

What are the disadvantages of these sources

What is the cost of each energy source mentioned

Are they affordable to the majority of the community members

Apart from the mentioned energy sources mentioned are there other sources of energy you know

If yes, mention the sources

Where did you learn about these sources

Do you know the cost

If they do not mention biogas kindly ask them if they have heard about it.

Follow up with an explanation what biogas is about

38 | P a g e

Appendix III: Biogas and Bio-Slurry Value Chain/Market Analysis Key Informant

Interview Guide


KEY INFORMANT INTERVIEW GUIDE


________________________

1.11. Town: ___________________________________________

1.12. District: ____________________________________________________________

1.13. Name of Respondent: __________ Sex: __________

E. Livestock Value Chain – Dairy, Poultry and Pigs

What kind of Livestock is there in the community?

Kindly rank them?

What kind of livestock and management systems is practiced in the district? (free range, semi intensive and intensive)

Kindly rank them according to importance

What is the population of the mentioned value chains

Who keeps the mentioned livestock?



Is there any manure produced by the said value chains?

What are the quantities of manure produced?

Which value chain gives more manure?

What is the manure used for?

F. Horticulture Production

What types of crops are grown in the district?

Kindly rank them according to importance

What size of land are the said crops grown on (Lima, Acre, Hectare)?

Are there any horticultural crops grown in the area?

Kindly list them

On a scale of 1-10 which value chain is mostly grown and why?



39 | P a g e

Do they apply any chemicals and fertilizers to the crops?

Where do they buy the inputs from?

What could be the cost of fertilizer for the ranked crops in producing it to harvesting time?

Where is the source of these fertilizers? Do you pay for transportation? If yes how much?

G. Renewable Energy Sources

What type of energy sources are used in the district

What are the sources of these energy sources

How often do they access these energy sources

On a scale of 1-5 which energy source is mostly used and why?

On a scale of 1-5 which sex (Male or Female) mostly uses the energy source and why?

What are the advantage of these energy sources

What are the disadvantages of these sources

What is the cost of each energy source mentioned

Are they accessible and affordable to the majority of the community members

Apart from the mentioned energy sources mentioned are there any other sources of energy you know

If yes, mention the sources

Where did you learn about these sources

Do you know the cost

If they do not mention biogas kindly ask them if they have heard about it.

Appendix IV: Biogas and Bio-Slurry Market Analysis - Financial Services Providers

Questionnaire

Biogas and Bio-Slurry Market Analysis - Financial Services Providers Questionnaire

1. Company Name 2. Physical Address

3. Postal Address 4. Contact Name

5. Contact Title 6. Contact Number

1.

7. Contact Email 2.

8. List of provincial branches if any

9. □ Northern □Luapula □Southern □Lusaka □Central □Western □North Western □Muchinga □Copperbelt

10. Kindly provide list of all branches by district (emailed soft copy preferable)

40 | P a g e

11. Please state if bank, Micro Finance Institution (MFI) or other □Commercial Bank (Bank) □ (MFI) □Other (Specify)……………………………………..

12. Do you provide loans to small scale farmers? □ Yes □NO

13. Do you finance purchase of equipment for small scale farmers?

□ Yes □NO

14. Kindly share product list with conditions/features available to small scale farmers.

15. Kindly indicate which equipment you finance below:

16. Are you involved in any equipment credit schemes with intermediaries such as banks, MFIs, ZNFU, NGOs, out-grower schemes etc? Kindly list them below and give a brief description

□ Yes □NO

Scheme Name(or Scheme Partner)

Brief Description

A.

B.

C.

D.

17. What are the stipulated consequences for default

18. Which of the following assets do you accept as collateral

□The financed equipment only □Other Farming Equipment □Food Processing Equipment □ Water Pumps □Cattle □Goats □Brick and Mortar Iron Roofed Home □Land/Farm □Household Furniture □Commercial Grain/produce □ Savings □Other Livestock (Specify):………………………………….. □ Other Assets (Specify):……………………………………..

41 | P a g e

19. Briefly describe your client acquisition process/strategies.

20. Do you conduct financial literacy training prior to lending to potential customers?

□ Yes □NO

21. How do you determine the interest/repayment rates?

22. How are your lending operations regulated (which agencies, associations, acts, etc.)?

23. Would you like to participate in a renewable energy innovation in collaboration with AgriProFocus, SNV and Energy 4 Agriculture to promote biogas and bio slurry uptake in Eastern and Central Provinces by small scale farmers?

□ Yes □NO

24. What would be your requirements to support such an innovation?

Appendix V: List of Key Informant

Name Position Organization Location

Miss. Nosiku Siyumbwa Communications Officer

SNV-Zambia Lusaka

Miss. Claire Van De Kleij SNV-Zambia Lusaka

Mr. Kenan Lungu Senior Biogas Officer SNV-Zambia Lusaka

Mrs. Mercy Zulu SNV-Zambia Eastern Province

Mr. Austin Vwali SNV Central Province

Mr. Mwansa SAO Ministry of Agriculture and Livestock

Lundazi

Mr. Ngulube DACO Ministry of Agriculture and Livestock

Chipata

42 | P a g e

Mr. Alphonce Kalahawe SAO Ministry of Agriculture and Livestock

Chipata

Mr. Kayamba Sikazwe Provincial Agriculture Planner

Ministry of Agriculture and Livestock

Chipata

Mr. Funwayo Ngoma Mason - Chipata

Mr. Dalitso Daka SAO Ministry of Agriculture and Livestock

Chadiza

Miss Christine Nyambe Project Manager Heifer International Chipata

Mr. Musendo DACO Ministry of Agriculture and Livestock

Katete

Mr. Mark Tapiseni Mason Katete

Mr. Oscar Mwale Mason Katete

Mr. Lubasi DACO Ministry of Agriculture and Livestock

Lusaka

Mrs. Mulenga Mukwavi Livestock Production and Extension Officer


Chibombo

Mr. Phakati DACO Ministry of Agriculture and Livestock

Lusaka

Mr. Malipa DACO Ministry of Agriculture and Livestock

Lusaka

Miss. Etambuyu Anamela DACO Ministry of Agriculture and Livestock

Lusaka

Mr. Isaac Mando Integration Manager Vision Fund-Zambia Lusaka

Mr. Isabel Donga Secretary & Sales Person

Suntech Zambia Limited Lusaka

Mr. Dominic Chanda Executive Manager Poultry Association of Zambia

Lusaka

Mr. Kapoche Mwale M&E Manager Dairy Association of Zambia Lusaka

Mr. Gerrary Kabazunga Milk Trader Mumbwa

Mr. Hector Mazuba Block Extension Officer


Mumbwa

Mr. Kanyata Muchula SAO Ministry of Agriculture and Livestock

Kapiri Mposhi

Dr. Pius Chifupa District Veterinary Officer


Kapiri Mposhi

Mrs. Judith Chola Sales Person Mpima Dairy Association Kabwe

Miss. Ester Ng’ambi Dairy Farmer Mpima Kabwe

Mrs Mary Mangamo Acting Principle Agriculture Supervisor


Kabwe

Mr. Patrick Longwani Provincial Agriculture Planner


Kabwe

43 | P a g e

Appendix VI: List of Focus Group Discussion

District FGD Participants

Kapiri Mposhi Simon L. Chuma

Kenny Luvila

Misheck Sikumba

Justine Kalunga

Jacob Liwakala

Beauty Mpaishi

Misheck Kabuswe

Katete Janet B. Mbewe

Asinezi Zulu

Esther M. Phiri

Mary Mbewe

Joyce Sakala

Agness Soko

Dailes Banda

Betty Phiri

Mabvuto Banda

Donald Phiri

Davies Phiri

Petauke Ackson Zulu

Lucas Mwanza

Johnson Tembo

Steven Khondowe

Daniel Phiri

Leonard Banda

Rosemary Banda

Rhoda Mwale

Isaac Mwale

Jackson Mwanza

Day M. Kazembe

Chisamba Nasson C. Jila

Collins Chooma

Patrick K. Kashindi

Mbofwana Burton

Vincent Chakopa

Kenneth Mulungushi

Bornface Malanga

44 | P a g e

Harold Sinyangwe

Phanwell Mooya

Lilian Kkolala

Prisca Namakando

Catherine Phiri

Mebbo Phiri

Elizabeth Noyi

Chipata John Phiri

Bisalomo Banda

Joseph Sakala

Sandford Sakala

Josphine Sakala

Faidesi Lungu

Beatrice Ngoma

Phiri John Junior

Godwin Banda

Catherine Banda

Layford Phiri

Gideon Tembo

Jessy Nyendwa

Chadiza Sylvester Banda

Morres Phiri

Ireen Phirir

Samson Phiri

Velina Zulu

Samson Banda

Morris Phiri

Philip Mwale

Friday Phiri

Morgan Mkonyo

45 | P a g e

market analysis study for uptake of...

Documents