Government Initiative Launches: Sustainable Agriculture Financing Facility Boosts Farming

The Zambian government has now rolled out the Sustainable Agriculture Financing Facility credit program, beginning the registration process at district agriculture coordinators’ offices. This initiative, designed to bolster sustainable farming practices, has the objective of granting accessible loans to farmers.

Reuben Mtolo, the Agriculture Minister, announced that these loans will be made available through banks with a competitive interest rate set at 12%. He stressed that all recipients will be required to enter into bonding agreements, committing to selling their agricultural produce to the Food Reserve Agency (FRA). This commitment acts as a market facilitation strategy, guaranteeing national food security.

During a presentation at the National Assembly, Minister Mtolo clarified that the loans would be provided in the form of farming inputs. This targeted approach aims to assist farmers who do not benefit from the Farmer Input Support Program (FISP), allowing them to access crucial resources for agricultural production.

The Sustainable Agriculture Financing Facility will not disburse cash to farmers. Instead, its focus is on providing the necessary inputs and support to enhance agricultural productivity and ensure food security within Zambia.

The introduction of this credit program represents a significant step in advancing sustainable agriculture in Zambia, offering financial assistance to farmers and underscoring the country's commitment to achieving food self-sufficiency and economic growth.

This initiative has the capacity to enhance the quality of life for both numerous smallholder farmers throughout the country and the general population.