Farmers Review Africa March/April 2020 Farmers Review Africa March - April 2020 digital ( | Page 10
NEWS
sold on local and international markets, he added.
With this new initiative, farmers will be able to
grow their businesses with the help of access
to markets and credit finance without having to
worry about repaying debts. Farmers who do not
have access to loans can tap into this initiative to
grow their businesses.
Zambia possesses a large land resource base
of 42 million hectares of which only 1.5 million
hectares is cultivated every year. There are
abundant water resources for irrigation and the
country has 40 percent of the water in Central
and Southern Africa.
Zambian agriculture business launches
$81 million farmer financing scheme
A
frican Green Resources (AGR), one of
Zambia’s largest input suppliers, launched
an $81 million financing programme that
will provide farm supplies and technology to
farmers in exchange for grains. The project
comes under the company’s plan to invest up to
$150million in the southern African nation commercial farmers and 250,000 small and
middle farmers. The project will be financed
through regional and global banks, with the loans
paid back from the produce the programme
yields. It is also guaranteed by the African
Development Bank, the African Union, Sace Italy
and Agriculture Grain International.
The project will include the provision of farming
equipment, a 50-megawatt solar farm and
irrigation dam. It will cover 60,000 tonnes ($55
million) worth of fertilizer for wheat and soy
farming as well as $26 million for projects such as
the expansion of grain storage silos. The company is employing a trade-by-barter
approach, where farmers will be given farming
supplies and technology, and instead of paying
back in cash with interest, the debt would be paid
with grains. “We will repay the loan from sales of
wheat flour, soya processing plant products, and
silo revenue,” AGR Chairman Zuneid Yousuf said.
The firm will receive 44,000 tonnes of wheat per
season, which will be processed before being
AGR seeks to enhance food security in Zambia
and its surrounding regions by investing in 120
8 | March - April 2020
More so, the agricultural sector is the ‘backbone’
of Zambia’s economy, contributing 35 percent to
the country’s total non-traditional exports (other
than copper and cobalt), with a 10 percent total
earnings for the country. But a drought in the
south and west hit the economy recently, lowering
2018/19 agricultural production and hydropower
electricity generation.
World Food Programme (WFP) records show
that over 45 million people in 16 nations of
southern Africa are faced with growing hunger
after repeated drought, low yields, widespread
flooding and sluggish economic growth.
Nonetheless, AGR initiative will help finance
agricultural business and would help in ensuring
food security for the country. African countries
should take a cue from AGR by involving in a
flexible trade by barter credit scheme for farmers.
This will help boost the agricultural sector,
by encouraging more people to venture into
agriculture, and ultimately increase exports and
revenue for the country.