Sun International Hotels, enhancing climate resilience in smallholder sourcing programmes, Zambia

Region
Sub-Saharan Africa
Country
Sector
IB topics
Last update
10/2022

Since 2004, Sun International Hotels (SI) in Zambia has managed a local food sourcing programme through which it procures fresh fruits and vegetables (e.g. tomatoes, lettuce, bananas) from 400 smallholder farmers in the Livingstone and Kazungula districts. This has resulted in security of supply and reduced costs for their two hotels and provided livelihoods opportunities to smallholders in the region.

 

Inclusive Business Model

The programme runs in partnership with ASNAPP, an agricultural technical assistance (TA) provider, which trains smallholders in horticulture production. SI has also partnered with CETZAM, a microfinance institution providing working capital to smallholders. However, challenges remain: lack of access to wider markets has limited the programme’s scalability; yields have increasingly been affected by extreme weather events (e.g. hail, floods, drought, frost); and as a result, smallholders struggle to meet loan repayments. Sun International and ASNAPP have identified some solutions including the establishment of a pack house through which produce can be channelled to existing and new markets and greenhouses to increase smallholder resilience to climate change. Other technologies are also being considered.

Impact

Sun International’s local sourcing programme provides a number of development benefits.

  • ASNAPP’s training in horticulture production helps increase smallholder yields and income. Last year, smallholders earned an average of $2,500 each from their produce.

  • Development of a pack house facility and partnership with a regional retailer is opening up new markets in which smallholders can sell surplus produce.

  • Potential adoption of new climate change resilient technologies and products could reduce vulnerability of smallholders to market and extreme weather conditions.

  • Income increase among smallholders is also contributing to greater overall economic activity in the Livingstone area.