Over K90 million has been disbursed to small-scale and emerging farmers across Lusaka Province as part of the government’s Agricultural Credit Facility — a move aimed at scaling up production, strengthening food security, and transitioning Zambia towards an agro-industrial economy.

The funds, provided under the Ministry of Agriculture in partnership with Zambia National Commercial Bank (ZANACO) and other financial partners, are part of a larger nationwide effort to ensure timely access to capital for farmers ahead of the next planting season. The disbursement was confirmed by Agriculture Minister Mtolo Phiri during a tour of farmer cooperatives in Chongwe District.

“We are deliberately shifting from handouts to empowerment,” Minister Phiri said. “This K90 million is not a gift. It is an investment in Zambia’s food system, an investment in productivity, and an investment in our national stability.”

The facility allows farmers to access loans with favourable terms, including low interest rates and grace periods aligned with harvest cycles. The funds are targeted at inputs like fertiliser, seed, irrigation systems, livestock feed, and mechanisation — with a strong focus on women and youth-led cooperatives.

So far, over 2,000 farmers have benefited in Lusaka Province alone, with plans to extend the financing facility to all 10 provinces by the end of 2025. “This is the first time in years that farmers are receiving financing in a timely, structured, and equitable manner,” said ZANACO’s Head of Agribusiness, Jacob Mwanangombe. “It’s a signal of confidence in Zambia’s agricultural sector.”

The facility also includes an insurance component designed to protect farmers from crop failure due to drought or floods — a key improvement as climate shocks increase in frequency.

Zambia, whose economy has long depended on mining, is seeking to diversify through agriculture. The sector currently contributes around 20% to GDP and employs nearly 60% of the population, yet it remains plagued by underfunding, low productivity, and poor access to finance. This facility is seen as a major corrective measure.

“This is how we walk the talk on food security,” Phiri said. “It’s no longer about pilot projects and symbolic support. We are now financing at scale — and we expect results.”

Beyond local impact, the funding aims to feed into national stockpiles, with surplus yields earmarked for export to DRC, Angola, and East Africa. Already, the Food Reserve Agency (FRA) has signed off-take agreements with several cooperatives that are part of the credit facility.

The initiative is part of a broader economic reset that includes decentralised procurement, digitised farm registration, and the establishment of farmer data hubs to ensure traceability and market access.

Provincial Agricultural Coordinator for Lusaka, Dorothy Banda, said the facility had “re-energised” the region’s farming base. “We’ve seen renewed enthusiasm. Farmers are planning, budgeting, and even exploring export markets,” she said.

However, some analysts caution that effective monitoring will be crucial. “K90 million is a great start,” noted agriculture economist Dr. Chishimba Mwale. “But we must ensure that funds are used productively, that recoveries are enforced, and that the most vulnerable farmers are not left out.”

Minister Phiri addressed those concerns directly. “We will follow the money. We will follow the seed. We will follow the harvest. And we will ensure accountability at every level.”

The Agricultural Credit Facility, expected to rise to K1 billion by 2026, is now one of Zambia’s flagship economic empowerment tools. As the government looks to reduce food imports and create rural jobs, the success of this financing model could determine whether Zambia truly transforms its agricultural sector — or merely subsidises it.