KAZABU

By CHILA NAMAIKO-
GOVERNMENT has urged banks and other financial lending institutions to develop suitable financial products that will meet the needs of farmers and agro-processors.
Agriculture and Livestock Deputy Minister Luxon Kazabu said small and medium scale agri-businesses and small-holder farmers had limited access to appropriate financial services and products.
Mr Kazabu said such challenges limit the farmers’ investment capacity and ultimately the profitability of their enterprises was affected.
“Smallholder farmers and agri-business in Zambia do not have access to information on financial and insurance products, thus limiting their uptake and utilisation of thee products available,” he said.
He was speaking in Choma on Friday when he opened a two-day 2014 agri-business financial fair Zambia hosted by SNV Netherlands Development Organisation, aimed at bringing the farmer and the financiers to one forum.
Mr Kazabu said the financial service providers were unable to reach out to all farmers or were not aware of the investment opportunities in particular sub-sectors under the ministry.
“All that needs to be done is to close the information gap between the producers and the would-be investors and service providers by establishing effective information dissemination systems and channels,” he said.
Mr Kazabu, however, said the Government was committed to promoting private sector investments in the agricultural sector which could lead to more sustainable development.
SNV acting director for Zambia, ThomasWere called for increased awareness and access to farmers on information about various financial products and services if the agricultural sector was to advance.
Choma District Dairy Cooperative Union chairperson Farmer Noole urged financing institutions to emulate Zanaco which together with Zambia National Farmers Union and the Dairy Association of Zambia developed a loan product for small-holder dairy farmers despite the farmers lacking conventional collateral.
Southern Province Deputy Permanent Secretary Douglas Ngimbu was happy that the districts in the area had received D-Compound fertiliser under the Farmer Input Support Programme (FISP) while Urea would be delivered soon.