More than K90 million has been disbursed to small-scale and emerging farmers in Lusaka Province under the government’s Agricultural Credit Facility, marking a bold step toward strengthening food security and transforming Zambia into a modern agro-industrial economy.
The funds, released through the Ministry of Agriculture in partnership with Zambia National Commercial Bank (ZANACO) and other financial institutions, are part of a broader national strategy to ensure that farmers gain timely and equitable access to credit before the next planting season. Agriculture Minister Mtolo Phiri confirmed the disbursement during a recent tour of cooperatives in Chongwe District.
“We are deliberately shifting from handouts to empowerment,” said Phiri. “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 credit facility offers farmers low-interest loans with grace periods that align with harvest cycles. The funding is earmarked for critical inputs such as fertiliser, certified seed, irrigation systems, livestock feed, and mechanisation — with a strong emphasis on supporting women and youth-led cooperatives.
So far, over 2,000 farmers across Lusaka Province have benefited from the initiative, with plans to scale it to all 10 provinces by the end of 2025. ZANACO’s Head of Agribusiness, Jacob Mwanangombe, called the facility a milestone. “This is the first time in years that farmers are receiving financing in a timely, structured, and equitable manner. It’s a signal of confidence in Zambia’s agricultural sector,” he said.
The credit programme also includes an insurance component to cushion farmers from climate-related risks such as droughts and floods — a significant innovation in light of Zambia’s growing vulnerability to extreme weather.
Although agriculture accounts for about 20% of Zambia’s GDP and employs nearly 60% of its population, the sector has historically suffered from underinvestment, low productivity, and limited access to credit. This new facility is seen as a potential game changer.
“This is how we walk the talk on food security,” Minister Phiri emphasised. “It’s no longer about pilot projects and symbolic support. We are now financing at scale — and we expect results.”
The long-term vision includes boosting national food reserves and generating export surpluses for markets in the Democratic Republic of Congo, Angola, and East Africa. Several cooperatives already under the credit facility have signed off-take agreements with the Food Reserve Agency (FRA), linking them directly to national food systems.
The initiative forms part of a wider economic reform agenda that includes decentralised procurement processes, digitised farm registration, and the rollout of farmer data hubs for improved traceability and market access.
Lusaka’s Provincial Agricultural Coordinator, Dorothy Banda, praised the programme’s impact on local farming communities. “We’ve seen renewed enthusiasm. Farmers are planning, budgeting, and even exploring export markets,” she said.
While the programme has been widely welcomed, experts warn that its success will depend heavily on monitoring and accountability. “K90 million is a great start,” said 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 behind.”
Minister Phiri responded to those concerns with assurance. “We will follow the money. We will follow the seed. We will follow the harvest. And we will ensure accountability at every level.”
With the facility expected to grow to K1 billion by 2026, it is now positioned as one of the government’s flagship tools for economic empowerment. If successful, it could be the turning point that shifts Zambia from agricultural subsistence to sustainable commercial production — creating jobs, driving exports, and reducing the country’s dependency on food imports.