Are you looking forward to securing small-scale farming loans in Zambia? If so, various institutions provide you with agriculture loans in Zambia from various sectors, including government and non-government bodies.
Getting a loan for your farming activities can significantly boost your agriculture production.
In this blog post, we will show you how you can access your agriculture loans in Zambia and from where.
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Where to secure Agriculture Loans in Zambia
Here are the places you can get your small-scale farming loans in Zambia
1. Ministry of Agriculture Loans (Government Agriculture Loans)
In November of 2023, the government of Zambia through the Ministry of Agriculture, introduced the Sustainable Agriculture Financing Facility credit window. The initiative, designed to support and promote sustainable agriculture practices, aims to provide accessible loans to farmers.
These loans are made available through banks at a competitive interest rate of 12 percent. The catch for these loans is that all beneficiaries are required to enter binding agreements, committing to selling their produce to the Food Reserve Agency (FRA).
However, It is important to note that these loans are provided in the form of farming inputs. This targeted approach aims to benefit those farmers who are not covered under the Farmer Input Support Program (FISP), allowing them to access essential resources for agricultural production.
How to Apply
To apply for the Ministry of Agriculture loans in Zambia, follow the following steps:
1. Check Eligibility
Agricultural loans in Zambia are usually offered to small-scale farmers and cooperatives. For this reason, you must be involved in Agriculture or Agribusiness
2. Register as a Farmer or Agribusiness
Ensure you are registered with any recognized farmer cooperative in your area or with the Ministry of Agriculture. As earlier stated, giving a loan to a registered entity or a cooperative is easy.
3. Deciding the Loan Type
The Ministry of Agriculture may offer various loan types ranging from farming inputs, machinery, irrigation systems, or agro-processing. It is important to identify the type of loan you need by visiting the Ministry of Agriculture website or your local agricultural office.
4. Get Your Documents Ready
To apply for a Ministry of Agriculture loan, here are the documents that are required:
- Registration proof with the Ministry of your local cooperative.
- A proposal outlining how you plan on using the loan.
- Bank account details.
- Your National Registration Card (NRC)
2. Zanaco Emergent Farmer Credit Facility
The Zanaco emergent farmer credit facility provides financial assistance to emergent farmers to help them grow and produce their agricultural products.
Here are the emergent farmer credit assessment criteria used by Zanaco:
Crop Production (Field/High-Value Crop Production
- Proven agriculture-related entrepreneurial skills and track record
- Reasonable farming sizes and assets to support existing production
- 50 ha of arable land
- Minimum turnover of ZMW400,000
- Minimum 3-year record of farm performance
- Well-described bankable business concept
- Good credit history
- Ultimately, the assessment will be on individual merit
Livestock Production (poultry, piggery, fish, etc.)
- Proven entrepreneurial skills and track record
- Reasonable farming size and assets (including adequate productive land) to support specific business enterprises.
- Record of farm performance for business promoter (3 years) and/or farm manager Good and well-described bankable business concept
- Minimum turnover of ZMW400,000
- Good credit history
- Ultimately, the assessment will be based on individual merit
3. Citizens Economic Empowerment Commission
The Citizens Economic Empowerment Commission (CEEC), a statutory under the Ministry of Small and Medium Enterprises Development (MSMED), is a body corporate established through the enactment of the Citizens Economic Empowerment Act No. 9 of 2006 to foster broad-based economic empowerment in Zambia.
Loan Interest and Tenor
The loan attracts a Twelve (12%) percent interest and a maximum loan tenure which is Sixty (60) months. Six (6) months grace period shall be given to all loan beneficiaries to set up and operationalize the project.
Eligibility
- Established and operating in the Agriculture sector i.e. Crop Production, Livestock, Aquaculture, etc.
- (MSMEs and Cooperatives) with a viable business project.
- The beneficiary must be a Zambian Citizen with a Green National Registration Card
- For Business Names and Limited Companies, one must be a registered company with a PACRA
- certificate of incorporation
- For Cooperatives, one must be registered with the Registrar of Cooperatives.
- Must provide sufficient collateral to secure the loan being applied for.
- Must have a ZRA Tax Payer Identification Number (TPIN)
To apply for a CEEC agriculture loan in Zambia, download the application form.
Conclusion
So, are you ready to watch your Zambian agricultural dreams take root? With the abundance of resources available, securing agriculture loans in Zambia and financing your farm’s potential is within reach.
Remember, you’re not alone in this journey. From government grants to private lenders, there’s a path to success waiting for you. Don’t let financial obstacles hold you back. Take the first step today, and watch your agricultural endeavor flourish!
Please share your thoughts on Agriculture loans in Zambia. We hope this blog post is useful to you.
PS: The Best Double Cobbing Maize Varieties in Zambia
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