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June 19, 2008

Lonrho to build agro-storage, processing facility at Malawian airport

Lonrho Plc the conglomerate with a large portfolio of African investments, has signed an agreement with the government of Malawi to develop an international standard cold store and agri-processing and packing facility at Kamuzu International Airport in Lilongwe, in conjunction with developing a 100 hectare agricultural project adjacent to the airport.

Following the agreement with Airport Developments Limited ( ADL ), a 100% owned subsidiary of the Malawian Government, Lonrho will develop a quality control process; agri-processing facility; packing house; and cold store for fruit, vegetables and flowers. The facility will provide the necessary infrastructure for the Malawian agricultural sector to commence international exports of agricultural produce and flowers.

It is envisaged that formal agriculture will supply 30 - 40% of the processing plant input, and that 60 - 70% will be sourced from local indigenous small farmers. Lonrho will provide agronomist advice to aid local farmers to increase yields and quality of production.

Lonrho will pay a nominal ground rent for the 100 hectare farm and the site for the new facility. The new facility will be located with direct access to the airport apron for ease of handling and will be located at the existing logistics terminal at Kamuzu International Airport. ADL will receive a royalty payment in relation to the turnover of the new business.


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