EU, Zanaco, Team Europe and BEI support small farmers in Zambia
An agricultural investment initiative of 30 million euros is launched
Smallholder farmers and rural cooperatives across Zambia will benefit from a new € 30 million initiative to be exploited in agricultural investments launched in Lusaka and Luxembourg. The new initiative will improve agricultural productivity and support a sector severely affected by the challenges of Covid-19. The loan will be managed by Zanaco and is supported by the European Union and the European Investment Bank. It is part of the wider Team Europe project for the sustainable marketing of small Zambian farmers.
At the launch in Lusaka, the national importance of unlocking agricultural investment for Zambia by improving access to long-term finance was further underlined by Cecilia Kamanga, Permanent Secretary of the Ministry of Agriculture and Central Bank Governor Dr .Denny Kalyalya. Mukwandi Chibesakunda, Zanaco's Chief Executive Officer, announced in detail the new targeted support for agricultural investments and the commitment of Zanaco teams across the country to launch the new initiative. "Today we are cementing the strong link between the EU and Zambia. Team Europe, including the European Commission, has backed Zambia in its response to Covid-19 with nearly € 58 million. And as we emerge from the pandemic, Team Europe is ready to further support the country on its journey towards a green, sustainable and inclusive recovery. The 15 million euro credit line signed today will allow smallholder farmers and agricultural businesses to adapt to climate change. more resilient farmers and will impact thousands of lives", said Jutta Urpilainen , European Commissioner for International Partnerships. "Agriculture is central to the economic activity and social development of Zambian rural communities. This new € 30 million scheme will accelerate smallholder and farm investment through increased access to finance".
The new loan will provide longer-term loans than normally available, both in local and foreign currencies, and will be complemented by a European Union technical assistance program to support farms across Zambia.
EFA News - European Food Agency