(Yicai Global) July 2 -- A unit of China's Chenguang Biotech Group will invest USD144 million in agricultural business in southern Africa's Zambia. 

Chenguang Biotech Zambia Agri-Dev has inked a letter of intent with Zambia's Ministry of Commerce, Trade and Industry about the project that involves at least 20,000 hectares of land to be used for cultivating chili peppers, African marigold flowers, and stevia sweetener, the Zhejiang province-based firm said in a statement. The company hopes to drive USD50 million in investment in related processing facilities. 

The move may mean that Chenguang's earlier plans are finally materializing. The Zambian unit said last April that it will invest USD26.3 million in a 10,000 hectare farm in three years in order to grow chili peppers and stevia, and produce 3,000 tons of chili oil each year. It is unclear whether the new investment includes the earlier sum.

The commerce ministry promised to provide policy support in terms of taxation, land supply, and work permits for the project. 

Editor: Emmi Laine