ZM-01: Cassava Bioethanol Demonstration Facility

SAZAM Group, a partnership between South African and Zambian stakeholders, is developing a cassava-to-bioethanol demonstration facility in Zambia's Luapula Province. The project will establish proof of concept for a commercially viable and scalable model that converts locally produced cassava into renewable fuel-grade ethanol. The initiative aligns with Zambia's national strategies for green industrialisation, import substitution, and rural transformation, positioning cassava as a strategic crop for sustainable energy and inclusive growth.

Zambia continues to rely heavily on imported fossil fuels, exposing its economy to volatile global oil markets and foreign-exchange pressures. Meanwhile, cassava is abundantly cultivated but remains under-exploited beyond subsistence use. By integrating cassava cultivation with industrial bioethanol production, SAZAM Group seeks to unlock new value chains that reduce energy import dependence, create rural employment, and promote climate-smart agriculture. The project also supports regional ambitions under the Southern African Development Community (SADC) to expand renewable fuel capacity and develop cross-border agri-industrial corridors.

The proposed facility, located near Mansa, will process approximately 5,300 tons of cassava annually to produce more than 4 million litres of anhydrous ethanol at ≥99.5% purity. The process follows a proven biochemical pathway of preparation, enzymatic hydrolysis, fermentation, and distillation, tailored for reliability under local operating conditions. The plant will operate adjacent to 750 hectares of dedicated cassava farmland and integrate additional supply from smallholder outgrowers through structured contract-farming schemes.

A valuable co-product, yeast biomass generated during fermentation, will be recovered and marketed as a high-protein feed ingredient. This co-product strategy enhances resource efficiency and strengthens financial performance without major additional capital investment, turning the plant into a circular biorefinery rather than a single-product operation.

The project requires capital investment covering all fixed capital, construction, and working-capital needs. A comprehensive 20-year financial model demonstrates strong profitability and rapid capital recovery. Under the ethanol-only scenario, the project achieves an Internal Rate of Return (IRR) of 37% and a discounted payback period of 3.96 years. When yeast revenues are included, the IRR rises to 41% and the payback period shortens to 3.6 years.

Comprehensive sensitivity and Monte Carlo analyses confirm the project's resilience to fluctuations in feedstock costs, ethanol prices, and operating expenses, with consistently positive expected returns. These metrics indicate a commercially attractive opportunity capable of delivering high investor value while maintaining manageable risk exposure.

The implementation timeline spans twenty-four months from financial close to commercial operation. The first quarter will focus on detailed engineering design, environmental and social permitting, and financial closure. Months four to twelve will involve procurement of long-lead equipment and major civil works, followed by installation, commissioning, and operator training through month sixteen. The second year will complete process commissioning, optimisation, and ramp-up to full capacity.

In parallel, SAZAM Group will roll out a comprehensive agricultural programme to secure consistent cassava supply, strengthen smallholder capacity, and synchronise harvesting with plant operation. By the end of Year Two, the facility will operate at full design throughput, generating ethanol and yeast revenues as projected.

The project is guided by the SAZAM Sustainable Agribusiness and Industrialisation Framework, embedding environmental stewardship and social inclusion across its value chain. Regenerative farming practices, intercropping, and a zero-deforestation policy will preserve soil fertility and biodiversity. Closed-loop water recycling, renewable-energy integration through solar and biomass systems, and waste valorisation will minimise the facility's environmental footprint.

Gender and youth empowerment form a cornerstone of the project's social strategy, targeting at least 40% participation in farming and employment programmes and providing technical and entrepreneurial training. All activities will comply with IFC Performance Standards, the World Bank Environmental and Social Framework, and Zambia's national environmental legislation to ensure transparent ESG monitoring and reporting.

The initiative will catalyse rural industrialisation by creating employment across farming, logistics, and processing while integrating smallholder producers into formal value chains. It contributes directly to multiple UN Sustainable Development Goals:

SDG 2: Zero Hunger

The project improves cassava yields through modern agricultural practices and structured contract-farming schemes with smallholder farmers, enhancing food security across rural communities while creating resilient agricultural value chains.

SDG 8: Decent Work & Economic Growth

By creating employment opportunities across farming, logistics, and processing operations, the facility catalyses rural industrialisation and integrates smallholder producers into formal value chains, promoting inclusive economic growth.

SDG 9: Industry, Innovation & Infrastructure

This demonstration facility pioneers bio-based manufacturing in the region, establishing a replicable model for green industrialisation that combines agricultural innovation with advanced bioprocessing technology.

SDG 12: Responsible Production & Consumption

The circular biorefinery approach maximizes resource efficiency through yeast co-product recovery, closed-loop water recycling, and waste valorisation, demonstrating responsible production patterns that minimize environmental impact.

SDG 13: Climate Action

Renewable bioethanol production directly substitutes imported fossil fuels, significantly reducing greenhouse gas emissions while supporting Zambia's climate commitments and regional transition to sustainable energy sources.

SAZAM Group is seeking investment to finance the construction and commissioning of the demonstration facility, including feedstock development and start-up operations. This investment will validate the process, generate operating data, and de-risk subsequent scale-up to larger industrial facilities across Zambia and neighbouring countries. Early investors will gain first-mover advantage in shaping a new renewable-fuel sector in Southern Africa, capturing both financial returns and measurable environmental and social impact.

The cassava-to-bioethanol demonstration project presents a technically feasible, economically sound, and socially inclusive opportunity that aligns with Zambia's long-term energy and sustainability objectives. With its strong financial fundamentals, clear developmental value, and replicable design, it stands as a practical model for green industrialisation and regional energy resilience across Sub-Saharan Africa.