MULUNGUSHI UNIVERSITY

SCHOOL OF AGRICULTURE AND NATURAL RESOURCES

STUDENT NAME:

STUDENT NUMBER:

PROGRAME:

YEAR: 4

ASSIGNMENT: 2

COURSE CODE: ANS 422

COURSE: AQUACULTURE PRODUCTION

DUE DATE: 30TH APRIL, 2023

LECTURE NAME: MR KAPANDA

To prepare an enterprise budget and income statement for Mr. Kamapainti, I will personally
assume that he plans to operate a medium-scale fish farm with a target production of 20,000
Oreochromis andersoni annually. The following is a detailed breakdown of the budget and
income statement:

Enterprise Budget:

Capital Expenditure

Pond construction (20m x 20m) = ZMW 20,000

Water supply system (pump, pipes, tank) = ZMW 5,000

Fish stock (20,000 fingerlings) = ZMW 40,000

Feed (1,500 kg) = ZMW 60,000

Fingerling transportation = ZMW 2,000

Total capital expenditure = ZMW 127,000

Recurring Expenditure (per annum)

Labor (2 farm attendants @ ZMW 3,000 per month) = ZMW 72,000

Feed (15 bags/month @ ZMW 400 per bag) = ZMW 72,000

Fertilizers and Lime (2 bags/month @ ZMW 200 per bag) = ZMW 4,800

Maintenance and repairs (5% of capital expenditure) = ZMW 6,350

Water and electricity (ZMW 1,500 per month) = ZMW 18,000

Total recurring expenditure = ZMW 173,150

Revenue
Sale of fish (20,000 fish @ ZMW 30 per fish) = ZMW 600,000

Total revenue = ZMW 600,000

Income Statement:

Total revenue = ZMW 600,000

Total expenditure = ZMW 173,150

Gross profit = ZMW 426,850

Net profit (after tax) = ZMW 383,165

Note: Taxation in Zambia is 9% of the net profit.

Key Challenges of Aquaculture as a Business in Zambia:

Lack of Access to Finance: Many small and medium-scale farmers struggle to secure financing
to start or expand their aquaculture businesses. Financial institutions are often reluctant to lend to
farmers due to a lack of collateral or perceived risk. To address this challenge, the government
and private sector stakeholders can work together to create tailored financing products for
farmers and provide capacity building to improve their financial literacy.

Poor Market Linkages: Farmers often face challenges in accessing reliable markets for their
products. This can result in low prices for their produce or significant losses. To overcome this
challenge, farmers can form cooperatives to pool their resources and improve their bargaining
power with buyers. Additionally, the government can facilitate market linkages between farmers
and buyers by creating platforms for them to connect.
Limited Access to Quality Inputs: Farmers often struggle to access quality inputs such as
fingerlings, feed, and fertilizers. This can lead to low productivity and poor quality products. To
address this challenge, the government and private sector stakeholders can work together to
improve the availability and affordability of quality inputs through initiatives such as subsidies,
extension services, and quality control regulations.

Possible solutions put up by the Zambian government to address these challenges include:

Access to finance: The Zambian government has established several programs to provide
financing and credit to fish farmers, including the Aquaculture Development Fund and the
Citizen Economic Empowerment Fund. These programs provide loans and technical assistance
to fish farmers, with the aim of promoting the growth of the industry.

Infrastructure development: The Zambian government has also invested in infrastructure

development to support the growth of the aquaculture industry. This includes the construction of
fish markets, cold storage facilities, and fish processing plants, as well as the development of
roads and water supply systems.

Training and capacity building: The Zambian government has launched several programs to
provide training and capacity building to fish farmers. This includes the provision of technical
assistance such as needed inputs, training on fish farming techniques, and the establishment of
demonstration farms to showcase best practices.

Market development: The Zambian government is working to develop markets for fish farmers,
including the establishment of fish markets and the promotion of fish consumption. The
government is also working to improve market information and access to buyers, as well as the
development of transportation and storage infrastructure.
REFERENCES

Kaunda, E. W., & Ngoma, H. (2019). Overview of the status of aquaculture in Zambia:
Opportunities and challenges. Journal of Agriculture and Rural Development in the Tropics and
Subtropics (JARTS), 120(2), 127-136.

Moyo, S., & Hamududu, B. (2018). Fish farming in Zambia: A review of the policy, legal and
regulatory framework. African Journal of Aquatic Science, 43(3), 251-258.

Soko, M. (2018). The Challenges of Aquaculture Development in Zambia. The African Journal
of Aquatic Science, 43(2), 11

Ministry of Fisheries and Livestock. (2017). Aquaculture Development Strategy for Zambia
(2018-2022). Lusaka, Zambia. Nalubamba, K. S., Choongo, K., & Chitundu, M. (2017

Zambia Aquaculture Development Fund. (n.d.). Retrieved from https://www.zadf.org.zm/

The Citizen Economic Empowerment Commission. (n.d.). Retrieved from

http://www.ceec.org.zm/