Govt, IFAD partner to boost agriculture in Southern Province
By Lawrence Kabutu in Kalomo
Sat 24 July 2010, 14:40 CAT
THE International Fund for Agricultural Development (IFAD) in partnership with the Zambian government is conceptualizing an agriculture project that will run from 2010 to 2012 to enhance agriculture development in Southern Province.
IFAD president Kanayo Nwanze made the disclosure when he toured IFAD funded projects at Nabuyani irrigation scheme in Kalomo. Dr Nwanze disclosed that IFAD was funding 250 to 300 projects worldwide aimed at uplifting the living standards of communities.
He explained that IFAD was gratified to implement projects that were aimed at transforming and empowering the rural communities in the agriculture sector particularly the women.
Dr Nwanze expressed happiness with the various agriculture projects that he toured in Kazungula and Kalomo districts in Southern Province.
He stated that IFAD was proud to be a partner of the Zambian people and government in working together to foster agriculture development.
Dr Nwanze pledged IFAD’s continued close collaboration in increasing the investment portfolio.
He commended the farming communities for registering a success story to improve their livelihood and assured them that IFAD would continue to find new ways of increasing their wealth.
Dr Nwanze clarified that agriculture was a business no matter its size and scale, adding that IFAD would support rural communities to access amenities that were in cities and towns.
‘’Food is not grown in Lusaka but here in rural areas, hence we shall ensure that we work together to create wealth through various agriculture projects,’’ said Dr Nwanze.
And agriculture and cooperatives minister Peter Daka said the government attached great importance to the agriculture sector in Southern Province and would work closely with IFAD to enhance agriculture development.
Daka expressed happiness with the visit by the IFAD president to Zambia adding that out of 54 countries in Africa, Dr Nwanze chose to visit Rwanda and Zambia.
Labels: AGRICULTURE, IFAD, KALOMO, KANAYO NWANZE, NABUYANI IRRIGATION SCHEME, SOUTHERN PROVINCE
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DBZ launches fund for IFAD pilot project
Written by Chiwoyu Sinyangwe
Friday, August 07, 2009 2:41:30 PM
DEVELOPMENT Bank of Zambia (DBZ) has launched a US $4 millionInternational Fund for Agriculture Development (IFAD) sponsored pilot project to provide affordable financing to
out-grower contractors of small-scale agricultural producers.
The purpose of the fund is to increase the use of sustainable financial services in rural areas and improve the livelihood of rural households as well as the viability of rural enterprises.
Through the credit facility for contracted small-scale production, the rural finance programme would promote the supply of sustainable financial services to contract farming companies and other bankable organizations that bonded small-scale producers.
During the launch on Wednesday evening, DBZ managing director Dr Abraham Mwenda announced that two banks had signed the lending contract with DBZ while more banks had expressed interest to sign up for the facility.
“Our role as the apex development finance institution is to disburse and manage funds available under the facility to participating financial institutions,” Dr Mwenda said. “The participating financial institutions include commercial banks and non-bank financial institutions, which will or have already signed up for the facility for onward lending to qualifying private contractor agricultural marketing, processing and out-grower companies. The loans will be specifically used to finance seasonal inputs, purchase farm produce and other products from contracted small-scale farm produce and other products from contracted small-scale producers, and small capital investment needs such as ploughs and other farming implements.”
Dr Mwenda said according to the features of the facility, the maximum exposure to a single borrower is US $500,000 or its kwacha equivalent while the maximum amount of funds a participating financial institutions was able to access was US $2 million which would be allocated on a first-come, first-serve basis.
“DBZ will lend to participating financial institutions on a clean basis as these institutions will not be required to provide collateral to access the funds,” said Dr Mwenda. “In setting their lending rates, participating financial institutions will be allowed to factor in the profile of prospective clients. Risk premiums are, however, expected not to make the loans beyond the reach of the ultimate borrowers.”
And agriculture and cooperatives minister Dr Brian Chituwo observed that lack of finance on reliable basis had been identified as one of the key constraints for most Zambian marketing and processing companies to expand their smallholder based contracted production operations.
“So far in Zambia, the availability of such financial services on a continuous basis has been very limited, as commercial banks with their urban orientation have shown marginal interest in rural production-related investment of this type,” said Dr Chituwo when he officiated at the launch of the fund.
Labels: AGRICULTURE, DBZ, IFAD, OUTGROWER SCHEMES
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State to inject $49m into NSCB
By NANCY MWAPE
GOVERNMENT is to inject US$ 4.9 million into National Savings and Credit Bank (NSCB) through the Rural Finance Programme (RFP) aimed at increasing sustainable financial services in rural areas. Finance and National Planning Minister, Ng’andu Magande launched the RFP this week to be financed by Government with a concessional loan of US$13.8 million from the International Fund for Agricultural Development (IFAD).
And NSCB managing director, Leonard Mwanza said management had developed an institutional development plan that outlined the number of branches to be opened this year. Mr Mwanza said 20 branches would be opened under the first phase of rural financing programme. He added that the bank’s aim was to have a presence in the 72 branches of the country.
The RFP has five components that include development of community based financial institutions with an allocation of US$2.3 million, US$4.9 million for promotion of rural banking services and a credit facility for contracted small scale production to be allocated US$ 4.5 million.
According to an appraisal report on the RFP, US$1.5 million would be allocated to innovation and outreach facility that would provide support to financial intermediaries to reduce the initial risk of offering services in rural areas and encourage innovative financial products.
Government has also allocated US$3.5 million for policy, institutional and management support that would be closely aligned with policy initiatives being developed under the Financial Sector Development Programme.
According to the RFP appraisal report, US$4.9 million for NSCB would support expansion of rural banking. The report adds that Government’s commitment to the recapitalisation would be in the form of a US$1.3 million debt or equity swap and US$1.2 million cash injection into the
bank.
IFAD’s contribution to the recapitalisation would constitute investment in the bank’s expansion of rural branches, procurement of a new computerised accounting system and professional support to improve management and operating procedures.
The report adds that the support would make it possible for NSCB to develop into a sound financial institution capable of servicing rural areas with savings, loans and money transfer products.
Labels: IFAD, MICRO-FINANCE, RURAL FINANCE PROGRAMME
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