Five agribusinesses to receive €6.5 million under Zambia, EU facility for farmers

Five agribusiness companies have been identified to be supported under the Zambia Agriculture Value Chain Facility meant to trigger sustainable growth and job creation in the industry.

These companies are Galaunia Farm Limited, Southern Cattle Company, Damust FARMS Limited, Waka Waka Estates and Matuka agri.

These companies will receive support through the Zambia National Commercial Bank (ZANACO) PLC, which will on-lend a portion of €6.5 million.

This is part of the €30 million-EUR facility set up by ZANACO in 2016 in partnership with the European Investment Bank (EIB) aimed at providing support to farmers across the entire agricultural value chain.

ZANACO Chief Executive Officer, Mukwandi Chibesakunda said with this facility, the institution had been able to extend 50 percent of the total amount to farmers and also provided skills training and technical assistance.

“Supporting the growth of the agriculture sector has always been one of ZANACO’s strategic priorities.

“As a bank, we understand the critical role that the agriculture sector plays in supporting the growth of our economy and particularly in the creation of employment,” Chibesakunda said on Thursday in Lusaka at the ZANACO and EIB 30 million Euros facility milestone function.

She said the partnership had deepened and would continue to deepen agricultural investment, create employment and contribute to economic growth in Zambia in the years to come.

At the same function, Head of the European Union delegation to Zambia Jacek Jankowski said the five selected companies underwent a challenging due diligence process.

Jankowski said the on-lending of loans to the tune €15 million through ZANACO was expected to integrate and create jobs for up to 11,000 smallholder farmers.

“In concrete terms, the Agriculture Value Chain Facility also provided climate finance to support sustainable agriculture, which is on top of Zambia’s nationally determined contributions to the Paris Agreement on Climate Change,” he said.

Meanwhile, Agriculture Minister Reuben Mtolo said initiatives such as the €30 million facility were key in supporting value chain development.

Mtolo urged farmers and other players across all the value chains to take advantage of the opportunities provided by the facility.

“We will be hearing from the farmers and other beneficiaries regarding the impact that the facility is having on their businesses.

“Specifically, we want to learn how the facility has supported access to finance, job creation and enhanced agricultural productivity,” he said.

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