The Government of the Republic of Zambia has officially launched the Rural and Agricultural Finance Strategy (RAFS) 2025–2030, a national framework designed to expand access to finance in rural communities, strengthen agricultural productivity, improve climate resilience, and accelerate inclusive economic growth. The launch took place in Lusaka and was led by Secretary to the Treasury Mr. Felix Nkulukusa, who described the strategy as a major milestone in Zambia’s development agenda. The initiative reflects a focused effort by government to reduce poverty, strengthen food security, and increase financial inclusion across the country. It also aims to create meaningful opportunities for farmers, rural entrepreneurs, women, and young people. The strategy is positioned as a long-term tool for transforming rural livelihoods through improved access to financial services.
At its core, the Rural and Agricultural Finance Strategy addresses a long-standing challenge faced by many rural Zambians, which is limited access to affordable financing. For many years, farmers and rural business owners have struggled to secure loans needed to invest in productivity-enhancing inputs such as seed, fertiliser, irrigation systems, livestock, machinery, and storage facilities. This lack of financing has slowed growth in rural enterprises and prevented many promising ventures from reaching their full potential. The new strategy seeks to change this by building a financial ecosystem that supports rural development and agricultural expansion. It aims to ensure that lack of capital no longer becomes a barrier to productivity and economic progress.
Government introduced the strategy based on the understanding that agriculture remains the backbone of rural livelihoods and a key driver of Zambia’s national economy. When agriculture performs well, food production increases, rural incomes rise, and employment opportunities expand across multiple sectors. Strong agricultural performance also supports the growth of related industries such as processing, transport, storage, and retail. However, these benefits can only be fully realised if farmers and rural businesses have access to reliable and affordable financial services. The strategy therefore provides a structured roadmap for improving financial inclusion in rural areas between 2025 and 2030.
One of the major expectations of the strategy is that financial institutions will develop more tailored products designed specifically for agricultural and rural economic activities. These products are expected to include agricultural loans, savings schemes, insurance packages, digital financial services, climate-smart financing options, and value-chain financing models. The goal is to ensure that farmers are not treated like traditional urban borrowers but instead receive financial solutions that reflect the seasonal and risk-based nature of agriculture. This approach is intended to make financing more accessible, practical, and sustainable for rural communities. It also encourages innovation in financial service delivery.
Value-chain financing is a key component of the strategy and expands the traditional understanding of agricultural finance. Instead of focusing only on crop production, the strategy covers the entire agricultural ecosystem, including input suppliers, farmers, aggregators, transporters, storage operators, processors, exporters, and retailers. By supporting each stage of the value chain, the strategy aims to increase investment, improve efficiency, and strengthen linkages between different actors in the agricultural sector. This integrated approach is expected to enhance productivity and ensure that value is created at every stage of the production process. It also supports stronger market systems and improved competitiveness.
Technology is another important pillar of the Rural and Agricultural Finance Strategy, particularly in addressing barriers related to distance and accessibility. Many rural communities are located far from formal banking infrastructure, making it difficult for residents to access financial services. To overcome this, the strategy promotes the use of mobile phones, mobile money platforms, digital payment systems, agent banking, and other financial technologies. These innovations are expected to reduce transaction costs, improve convenience, and extend financial services to remote areas. The increased use of digital tools is also expected to enhance transparency and efficiency in financial transactions.
The strategy places strong emphasis on climate resilience due to the increasing impact of droughts, floods, and other climate-related shocks on agriculture. It promotes the expansion of agricultural insurance, climate-risk financing, climate-resilient investments, and risk-sharing mechanisms. These measures are designed to protect farmers from severe losses and ensure faster recovery after climate disasters. By integrating climate considerations into financial planning, the strategy aims to strengthen long-term stability in the agricultural sector. It also supports efforts to build a more resilient rural economy capable of withstanding environmental challenges.
Women’s financial inclusion is a central focus of the strategy, recognizing the critical role women play in agriculture and rural trade. Despite their significant contribution, many women continue to face barriers in accessing credit, savings, and insurance services. The strategy seeks to address these challenges by prioritizing women’s entrepreneurship and expanding access to financial products tailored to their needs. It also aims to promote greater participation of women in formal financial systems. This is expected to unlock significant economic potential and contribute to stronger and more inclusive rural development.
Youth empowerment is another key objective of the Rural and Agricultural Finance Strategy. Many young people in Zambia have innovative ideas but lack access to startup capital needed to launch agribusinesses and rural enterprises. The strategy aims to create an enabling environment where youth can secure financing for farming, processing, agricultural services, and innovation projects. This approach is intended to make agriculture more attractive as a business opportunity rather than a subsistence activity. It also supports efforts to reduce youth unemployment and promote entrepreneurship in rural areas.
Development partners have expressed strong support for the strategy, highlighting its importance for agricultural transformation and food security. The German Agency for International Cooperation, known as GIZ, noted that agriculture supports the livelihoods of more than half of Zambia’s population and emphasized the importance of improving access to finance. The World Food Programme also described financial inclusion as both an economic and food security priority. WFP highlighted progress already achieved through savings groups, where more than 5,100 groups have been supported in 2025 with over 56,000 members participating. These groups have mobilised approximately K17.5 million in savings and facilitated around K25 million in loans, with more than K22 million in formal financing reaching nearly 17,000 beneficiaries. About 70 percent of these beneficiaries are women, showing the strong impact of inclusive financial models.
By 2030, the government envisions a transformed rural economy where more farmers can access affordable credit and more rural businesses can attract investment. The strategy also aims to increase the use of agricultural insurance and strengthen participation by women and young people in economic activities. Higher agricultural productivity, improved rural incomes, and stronger resilience to climate shocks are among the key expected outcomes. The strategy also targets stronger food security and increased job creation across rural communities. These outcomes are intended to contribute to long-term national development and economic stability.
The Rural and Agricultural Finance Strategy ultimately focuses on expanding opportunity and ensuring that location does not limit access to financial services. For farmers, it offers pathways to expand production and improve yields. For young entrepreneurs, it provides access to capital needed to launch and scale agribusiness ventures. For women, it creates better access to credit, savings, and insurance products that support sustainable business growth. For communities, it promises stronger local economies, improved resilience, and better livelihoods. The strategy represents a significant step toward building an inclusive financial system that supports Zambia’s broader economic transformation.