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The Ministry of Agriculture has raised concerns over the growing malpractice of agro-dealers colluding with farmers to exchange agricultural inputs for cash, contrary to the intended purpose of government programmes.
Agriculture Minister, Rueben Mtolo, in a statement issued Tuesday, warned that individuals engaging in such activities would face strict penalties, including permanent exclusion from government transactions.
“This is not the spirit in which the programme is being implemented. Those involved in this malpractice will be dealt with decisively,” Mtolo said.
The warning comes as the Ministry reviews progress in the implementation of the Sustainable Agricultural Financing Facility (SAFF), launched during the 2023/2024 farming season.
The initiative aims to provide affordable loans to farmers to boost food security at both household and national levels.
According to Mtolo, the SAFF offerred financial support for fertilizers, seeds, lime, agro-chemicals, irrigation systems, farm mechanization, livestock, and aquaculture.
He named participating banks as NATSAVE, Indo-Zambia Bank, and ZANACO, with discussions ongoing to onboard Access Bank, ABSA, Ecobank, UBA, and Zambia Industrial Commercial Bank (ZICB).
He claimed that NATSAVE commenced disbursements in November 2024, receiving 44,593 applications countrywide as of December 28, 2024.
Of these, 3,221 applications—amounting to K311,467,952—were successfully approved.
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Mtolo claimed that so far, K260,048,563 had been disbursed, and that 2,338 applicants had redeemed inputs worth K188,959,898.
“The Ministry conducts the preliminary assessment of loan applications, but actual disbursement is handled by the banks after their due diligence,” he explained.
Mtolo emphasized that applicants must repay loans within the agreed timeframe to maintain the programme’s sustainability.
He reiterated the government’s commitment to addressing malpractice, ensuring accountability, and fostering a reliable financing system for Zambian farmers.
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