As the planting season gets underway possibly mid to late this month, let’s consider this. Producing a hectare of soya beans costs about K10,800 kwacha ($816). A hectare produces 4-4.5 tons of beans. Taking 4 as a minimum, this means the revenue potential for soya beans is $1,336 or 17,600 kwacha. Gross profit is then 17,600 – 10,800 = 6,800.
When we got our Eurobond of $750 million, the Government would have secured a MOU with Nestle for instance to supply soya beans. And engage farmers to produce for Nestle. If we were in government, we would have dedicated a minimum of $100 million as a revolving fund for such a project. This would have produced 122,000 tons with revenue of $163.6 million ($63.6mn gross profit).
With this gross profit, the full $100 million would have been repaid in two years without recourse to taxation.
When we say we have a plan, we mean exactly this. Utuntu