GOVERNMENT PROVIDES SUPPORT THROUGH SUSTAINABLE AGRICULTURAL FINANCING FACILITY

By Happy Mulolani

Zambia has experienced the worst drought this year which has not only hit the agriculture sector but also negatively impacted various sectors of the economy.

This situation has impacted on the food production of the country’s smallholder farmers who produce approximately 60percent of the country’s food.

According to statistics, 84 districts across five provinces which includes Eastern, Southern, Western and Copperbelt provinces were severely hit, while the other districts were spared in the remaining provinces which include; Northern, Muchinga, Northern-Western and Copperbelt provinces. Sadly, the worst hit are essentially the ‘’maize belts” which are facing a critical shortage of maize, making it a necessity for input distribution to enhance food security.

This unexpected turn of events, compelled government to provide critical support through the Sustainable Agricultural Financing Facility (SAFF) to farmers across various value chains.

SAFF will provide financial support to boost the agriculture sector from K400 million to K1.2billion for the 2024/2025 farming season. Other than support towards crop production, the options for financing available include; irrigation, mechanisation, livestock and beef production.

Agriculture Minister Reuben Mtolo explains that government has signed agreements with nine participating financial institutions.

“Last year the number of banks which participated under SAFF were five, whereas this year with more expectations the number of financial institutions has increased to nine banks,” Mr Mtolo said.

The guidelines for accessing the facility and the list of participating banks will soon be published.

The expanded financing will cover a broad range of agricultural activities which includes; crops, livestock and aquaculture. This facility offers a wider and greater opportunity for farmers to broaden their engagement in gainful value chains.

Recently, Zambia National Farmers Union (ZNFU) hailed government’s intervention in providing support amid the dire drought effects which had hit the country.

Speaking after the official opening of the Fourth session of the Thirteenth National Assembly by President Hakainde Hichilema, ZNFU President Jervis Zimba noted, “the increased financing will provide critical support to farmers, particularly, those struggling amid the devastating effects of the drought.”

Mr Zimba commended government’s efforts to ensure that farmers are rightfully targeted through the electronic voucher system of the Farmer Input Support Programme (FISP).

He also stressed the necessity to distribute inputs through the Direct Input Supply (DIS) to the worst hit provinces; Central, Southern and Eastern provinces, with urgency given their “maize belt” status.

“Farmers will welcome this change if adopted, as it ensures that inputs reach them directly and helps avoid any risks of diversion,” Mr Zimba stated.

The provision of the agricultural loans is a good initiative and calls for more awareness to beneficiary farmers. It is imperative to ensure these loans are accessible to allow as many farmers to participate in farming. If this approach is effectively implemented, the country will ultimately its goal of increased production, food security and nutrition.

The support government has directed towards the agriculture sector is expected to boost the country’s transformative growth in the agriculture sector to assure long-term sustainability and resilience for farmers across the country.