Govt claims nearly 100% of K4.1 billion paid as debt owed suppliers under FISP scheme

Government has announced that it had settled nearly 100 percent of the K4.1 billion arrears owed to suppliers under the Farmer Input Support Programme (FISP) for the 2023/2024 farming season.

Ministry of Agriculture Permanent Secretary for Technical Services, John Mulongoti, revealed that the total arrears amounted to K4,167,862,835.

He added that the remaining balance, which was less than three percent, would be cleared once reconciliation with suppliers was completed and approved.

In a statement issued in Lusaka on Wednesday, Mulongoti also announced that both the FISP and the Sustainable Agriculture Financing Facility (SAFF) were scheduled to commence on September 2, 2024.

“The clearance of the 2023/2024 arrears will enable agricultural stakeholders to effectively participate in input supply for the upcoming 2024/2025 farming season and ensure a successful roll-out of the FISP e-voucher system,” Mulongoti said.

He explained that the 2024/2025 FISP would be implemented using the electronic voucher (e-voucher) modality in 74 districts and the Direct Input Supply (DIS) modality in the remaining 42 districts.

Mulongoti said that the e-voucher system was designed to transform Zambia’s agricultural sector by enhancing farmers’ choices of inputs, creating jobs and boosting the participation of more input suppliers and agro-dealers in the market.

“Our focus is on ensuring cost-effective and timely input distribution under FISP while promoting agricultural diversification,” Mulongoti stated.

He mentioned that the government would soon announce pre-financing mechanisms to guarantee timely e-voucher transactions and payments for inputs under the 2024/2025 FISP.

Mulongoti also noted that the government was working on ensuring that essential inputs such as seeds, fertilizers and other agricultural necessities were procured and delivered to farmers promptly for the 2024/2025 farming season.

“Farmers in districts unaffected by drought are expected to sell a minimum of 10×50 kg bags of white maize grain to the Food Reserve Agency as per Cabinet Circular number 11 of 2024, which is a prerequisite to qualify as a beneficiary under the FISP for the 2024/2025 season,” he added.

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