• More than 150, 000 small scale farmers will directly benefit and transition to greener and more sustainable Agri-food systems by 2025.
• Government attaches great importance to the sector.
• Access to affordable agricultural financing remains a challenge for smallholder farmers.
Minister of Agriculture has called for increased support and partnerships with cooperating partners and the private sector to enhance agriculture financing.
Speaking during the Enterprise Zambia Challenge Fund second Grant award giving ceremony to 10 Agro-businesses, Reuben Phiri said government attaches great importance to the sector because it plays a key role in transforming the country’s economy.
Mr. Phiri however noted that access to affordable agricultural financing remains a challenge for smallholder farmers due to high bank interest rates, limited collateral and limited financial literacy among other factors, making it difficult for small scale value chain actors to expand operations.
He also expressed concern over the high cost of production and challenges that the industry faces in accessing domestic and international markets.
“In addressing these issues, the government wishes to appeal for increased support and partnerships with cooperating partners and the private sector.”
“I am therefore, pleased that the Enterprise Zambia Challenge Fund and the concessional loans offered by the European Investment Bank complement government’s efforts to provide affordable agricultural finance and promotes agricultural diversification.” Mr. Phiri said.
Speaking at the same event, Minister of Green Economy and Environment Collins Nzovu said his Ministry is advocating for an economy that ensures income generation and jobs for citizens, through economic activities that reduce carbon emissions and pollution.
“The Ministry of Green Economy and Environment will, therefore, look at how we use subsidies, provide incentives and reform policies in order to expand green production and markets.”
“For the Corporate sector, this will require a good understanding of, and the ability to seize the opportunities presented by green economy transitions across the various sectors. This includes the ability to respond to policy reforms and price signals through higher levels of financing and investment,” Mr. Nzovu stated.
And Minister of Fisheries and Livestock Makozo Chikote stated that government has had made progress towards reducing the fish deficit in the country through aquaculture development which remains top on government’s agenda.
“I am pleased to see that part of the financial support under this project has been ring-fenced to support the development of aquaculture across Zambia. This will supplement the ongoing initiatives in aquaculture and I am once again thankful to the EU for the support,” he said.
Meanwhile, European Union (EU) Head of Delegation Jacek Jankowski disclosed that the 10 companies in the agriculture value chain have been given grants ranging from 250, 000 to 1 million Euros through Enterprise Zambia Challenge Fund.
He also stressed the need to accelerate transformation towards Green Growth.
Speaking earlier, Self Help Africa Zambia Country Director Elia Manda said the aim of the Fund is to strengthen agricultural value chains including agroforestry and aquaculture in the country.
Mr. Manda added that the project will run for five years and 40 to 45 Agri-businesses companies will be supported by the fund while about 8, 500 jobs are expected to be created during the same period and increase produce by smallholder farmers by at least 90 percent.
“Early this year we awarded five Companies and now 10 companies are being awarded bringing the total number to 15. We are still below the target of supporting 40 to 45 companies. We expect to meet the target early next year,” Mr. Manda assured.
He commended the EU for the technical and financial support rendered to Enterprise Zambia Challenge Fund.
The 10 companies that have received the grants under the 2nd Call issued by Enterprise Zambia Challenge Fund include Seba Foods, New Farming Rotations, ASBA Resources, Stake Ayres, Farm Depot, CGL Continental Ginnery Limited, ETC, Chisamba Ranching and Cropping, , COMACO, and Mount Meru Millers.
The project is seeking to integrate 150,000 small scale farmers and producers into sustainable value chains, help them transition to greener and more sustainable Agri-food systems and create more than 8,000 new jobs in the sector over the coming five years.
Enterprise Zambia Challenge Fund is targeted at Zambian small and medium enterprises (SMEs) that support productive and market-integrated smallholder agriculture.