• The partnership will allow Zanaco to extend 15 million Euros to support the growth of the agriculture sector in Zambia.
• The facility will support thousands of smallholder farmers through long-term financing scheme.
• Farmers must take advantage of the facility for the country’s agriculture sector.

Government says Zambia has potential of becoming the food basket of the region and the continent especially in the wake of the African Continental Free Trade Area (AfCFTA) given its geographical location.
Speaking on behalf of Agriculture Minister Reuben Phiri during the signing ceremony of the Agriculture Value Chain Facility between Zanaco and European Investment Bank (EIB), Ministry’s Acting Permanent Secretary Cecilia Kamanga however noted that the country’s potential of becoming a food basket for the region has for a long time been undermined by lack of proper value chains in the Agriculture sector.
Mrs. Kamanga noted that high interest rates and minimum threshold are some of the factors making it challenging for farmers to access loans from commercial banks to finance their farming activities.
She said the partnership between the European Investment Bank and Zanaco is therefore a key milestone in getting rid of challenges that affect the country’s agriculture growth.
“The launch and signing of Euro 30 million (K635 million) Agriculture Value Chain Facility between our all-weather friend, the European Investment Bank (EIB) and Zanaco Plc is therefore a key milestone in removing these bottlenecks that hinder the advancement of Agriculture in Zambia.”
“I have also been informed that the first targeted European Investment Bank support for sustainable agriculture investment in Zambia will increase access to finance, support job creation and enhance agricultural productivity and most of all focus on increasing access to finance by female smallholders, who have for a long time been marginalized,” she said.
She added that the initiative is in line with the new dawn government’s goals of transforming agriculture by focusing on productivity and value-addition.
Mrs. Kamanga said government believes that the financing scheme which will be managed by Zanaco and backed by the European Union and European Investment Bank is a broader step for sustainable commercialization of Zambian smallholder farmers.
She urged farmers to take advantage of the facility for the country’s agriculture sector to contribute meaningfully to Zambia’s economic development.
“President Hakainde Hichilema has given direction and outlined government’s plans to expand exports of agricultural commodities to countries in the region and beyond. The President expects farmers and Zambians as a whole, to benefit from increased trade in agricultural commodities. In this way, we will allow agriculture to positively contribute to the GDP of our country,” Mrs. Kamanga added.
And Zanaco Board Chairman Hastings Mtine said supporting the growth of the Agriculture sector has always been one of the bank’s strategic priorities because the institution understands the critical role the sector plays in supporting job creation.
Mr. Mtine added that the financial institution will build on its track-record of supporting the sector through improving access to finance, sharing best practice and innovation to unlock investment across the industry.
“Some of the many challenges that farmers face apart from access to finance, is access to markets and access to information. This partnership will allow us to extend 15 million Euros to support the growth of the agriculture sector in Zambia. Through this partnership, the bank and our customers will benefit from skills training and technical assistance,” he said.
Meanwhile, European Investment Bank Vice President Thomas Ostros who attended the event virtually said the agreement will transform Zambia’s agriculture sector, create jobs and ensure a better future for the smallholder farmers.
“European Investment Bank has worked with Zambian partners since 1988 to upgrade roads, and improve access to financing for SMEs among other investments. This new engagement will transform Agriculture in Zambia, create jobs and ensure a better future,” he stated.
Speaking at the same event, EU Ambassador to Zambia Jacek Jankowski said the 15 million Euros agreement between Zanaco and European Investment Bank will translate into providing laons to smallholder farmers and other players in the agriculture sector to help grow their businesses.
The facility will support thousands of smallholder farmers and rural cooperatives across Zambia through long-term financing scheme.