Government pledges to increase investment in agriculture

• Agriculture sector is key for economic transformation.
• The sector has not been able to fully meet its potential.
• Government is working to ease access to agriculture finance

Minister of Agriculture says government intends to upscale investment in agriculture to uplift economic growth and people’s prosperity.

Speaking in a speech read on his behalf by Ministry’s Director of Agribusiness John Mulongoti, during the FNB Zambia’s Agribusiness Forum in Lusaka, Reuben Phiri said the Agriculture sector is key for economic transformation of the country as it supports livelihoods of over 50% of the population.

Mr. Phiri however noted that the sector has not fully delivered to government’s expectations as well as citizens despite its potential to grow the economy.

“The Agriculture sector has not been able to fully meet its potential in meeting its aspirations of the farmers and its contribution to economic development due to several challenges,” Mr. Phiri noted.

He observed that farmers face challenges such as limited investment in Agriculture infrastructure, limited access to credit and finance especially for small scale farmers, high interest rates, as well as low production and productivity, poor price discovery and access to markets, among others.

Mr. Phiri adds that government is ready to work with the private sector and other stakeholders to address challenges affecting farmers and the industry as a whole.

He challenged financial institutions to come up with agriculture specific products which will reduce the cost of capital and make it easier for farmers to apply for financial capital to boost their businesses.

“Government is particularly interested in finding innovative solutions to the challenge of Agricultural finance products on the market due to the risk nature of the sector and the lack of agriculture specific financial products,” he said.

He further stated that government is working to ease access to agriculture finance through various interventions with cooperating partners.

And FNB Zambia Chief Executive Officer Bydon Longwe reiterated the bank’s commitment to support the agriculture sector as it is a key industry that supports the growth of the economy.

Mr. Longwe said the bank launched its Agribusiness offering in 2012 and has continued to be a key player through deliberate efforts that provide modified banking solutions for the farmers.

“Although Agriculture only accounts for 1.1% of Zambia’s National GDP, it more than compensates by being the largest employer in the country and through this, FNB Zambia is proud to be a part of ensuring that Agriculture continues to grow and thrive in Zambia,” he said.
He pledged the Bank’s continued engagements so as to support the growth of the agriculture industry.
Mr. Longwe further said the financial institution has over the years been actively participating in initiatives that continuously support the growth of agribusinesses that include export-oriented agribusinesses which contribute towards the promotion of value addition to agricultural products such as macademia nuts, peppadews and avocado pears whose export is in line with the Zambia’s National Agricultural Policy.
“I am pleased to report that, as of 30 June 2021, FNB had advanced on average, over K1 billion to mainstream Agribusiness and supply chain support to agribusinesses. Additionally, K566 million was extended to the Farmer Input Support Program (FISP).”
“Key to the exporting of agricultural products is value addition which results in more revenue generation for the exporting country as well as creation of jobs in upstream agriculture such as processing,” Mr. Longwe stated.

More From Author

World Bank urges Zambia to capture other benefits beyond mining sector

• World Bank is committed to supporting African countries to translate Africa’s mineral wealth into…

Read More

Kwacha gains should benefit consumers – BuyZed

• This is to ensure that consumers begin to enjoy what is produced locally.• Manufactures…

Read More

SEC attributes decline in Q4 bond trades to delayed debt restructuring process

• One of the challenges is to do with the delays in finalizing the debt…

Read More

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

IZB profit up 18.74% to K604.33 million

IZB has posted a K604.33 million Net Profit after tax for the year ended 31st…

Read More

Indo Zambia Bank declares K50 million dividend cheque

This is part of the K125 million dividend, the highest ever for 2023 financial year.…

Read More

Economist expects currency to hit K15 between April, December, 2024

  The Kwacha has been experiencing an unusual decline since introduction of the Export Proceeds…

Read More