Zambia Forestry and Forest Industries Corporation PLC (ZAFFICO), Agence Française de Développement (AFD), and French consultancy TEREA have signed a tripartite Memorandum of Understanding (MoU) to transform Zambia’s forestry sector in a major step toward advancing sustainable forestry and industrial growth.
The agreement, signed in Lusaka on 13th November 2025, sets the foundation for a multi-year collaboration focused on expanding ZAFFICO’s plantation footprint, enhancing industrial operations, and promoting agroforestry products. ZAFFICO currently manages over 62,000 hectares of pine and eucalyptus plantations across five provinces and plans to increase this area by an additional 50,000 hectares by 2028.
To support this bold vision, AFD has committed €390,500 through its Technical Expertise and Experience Exchange Fund (FEXTE), enabling a strategic partnership with TEREA. Under the MoU, TEREA will serve as the lead coordinating body, overseeing project implementation and technical support.
Speaking at the signing ceremony, ZAFFICO Managing Director Mundia Mundia outlined the project’s key components:
“We will begin with a comprehensive diagnostic phase to assess our plantation strategy, industrial operations, human capital, and financial management. This will help us identify gaps and propose targeted improvements.”
“A detailed market study will be conducted to analyze national, regional, and international market trends, competition, and business opportunities. This will guide our product prioritization and strategic positioning.”
“Our teams will participate in technical visits to forestry and industrial sites in France. These visits will promote knowledge exchange and will be complemented by a robust capacity-building program, including training of trainers, professional courses, and higher education partnerships.” Mundia Mundia said.
He further emphasized ZAFFICO’s long-term investment strategy.
“We have set forth an ambitious investment plan totalling USD 80 million for the period 2024–2038. This strategic roadmap reflects our commitment to sustainable forestry, economic diversification, and environmental restoration. The MoU we are signing today serves as a critical springboard toward realizing this vision.” He said.
Speaking at the same event, the French Ambassador to Zambia, His Excellency Thomas Rossignol, noted that the signing of the MoU signified a strong commitment to sustainable development efforts between ZAFFICO and and his embassy.
“We are pleased to support ZAFFICO’s strategic development goals for the benefit of the country,” he stated.
Marie-Hélène Loison, AFD Regional Director for Southern Africa, highlighted the partnership’s alignment with global climate goals and Zambia’s development aspirations.
“AFD is proud to support sustainable forest management as a pillar of climate resilience and circular economy. This collaboration reflects our shared commitment to responsible resource use, job creation, and bio-based industries,” She said.
The MoU marks a milestone as the impact will go far beyond markets and exports as it will reach communities and it stimulate rural development, empowering families and unlocking new livelihoods across forestry-dependent areas in ZAFFICO’s catchment areas.
