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Farmers not performing to optimal level due to collateral based loans – Govt

• many farmers in Zambia have not been performing to the optimal levels because they lack financial support
• The Oromia region in Ethiopia ensures that farmers access loans without collateral hence Zambia can do the same.
• There is need for the farmers to be supported in adding value to agricultural products

Minister of Livestock and Fisheries has revealed that many farmers in Zambia have not been performing to the optimal levels because they lack financial support as most loans are collateral based.
Speaking when he and Minister of Small and Medium Enterprises Development Elias Mubanga undertook a study tour of the Oromia region in Ethiopia, Makozo Chikote said the Oromia region ensures that farmers access loans without collateral through cooperatives, thereby enhancing their productivity.
Mr. Chikote emphasized that through loans, farmers can venture into mechanization that would, in turn, increase productivity and ultimately contribute to the country’s Gross Domestic Product (GDP).
“There is need for the farmers to be supported in adding value to agricultural products adding that value addition to agricultural products should not be a preserve of foreign investors but also local Zambian farmers, Ethiopia had a number of local investors in the agriculture value chain,” he said.
And Mr. Chokote said the introduction of the Presidential Delivery Unit is most welcome, especially that some countries like Ethiopia are implementing the same, with the latter going further to relieve underperforming officers of their duties.
“Introducing the PDU will make people accountable for their work and ultimately enable them to meet their targets on time, “he added.
Meanwhile, Engineer Mubanga Mubanga explained that the tour highlighted the need for effective cooperatives, further disclosing that the Government will create over two million jobs in the Agricultural sector by 2026.
Engineer. Mubanga said the Agricultural sector, if well harnessed, could create jobs and contribute to the country’s GDP.
The Minister urged Cooperatives to venture in Agriculture production and view the sector as a business and not only an avenue for self-sustenance.
He said the Cooperative movement in Zambia has been underperforming but further stressed the need to look at means of revitalizing it to contribute to competitive businesses.
“The Ministry called for a meeting with the Zambian Federation Cooperative, Provincial, and District Cooperative Unions to discuss how the cooperative movement can be more viable, productive and profitable.Some of the projects under the Cooperative movement, like the solar mills, have become white elephants, yet the Government procured them at a huge cost,” he noted.
“Zambia can draw lessons from Ethiopia which has a vibrant Cooperative movement that is driving that country’s economy hence Zambia and Ethiopia will continue to cooperate in critical areas including Agriculture, Cooperatives, Small and Medium Enterprises Development,” he stated.

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