Procurement News Notice |
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| PNN | 97 |
| Work Detail | THE Zambia National Farmers Union (ZNFU) says small-scale farmers do not have the capacity to borrow from financial institutions as interest rates being charged are still high, hence hindering the growth of the agriculture sector. Currently, interest rates range from 30 percent to 40 percent. ZNFU president Evelyn Nguleka also said the high interest rates at 30 percent are also a threat to food security because this deters farmers from accessing loans. Dr Nguleka said in an interview last week that, “Most small-scale farmers cannot access loans. Therefore, they have little resources to invest in farming and their profit margins have shrunk. “This has also resulted in few people investing in sectors like poultry because they no longer find it viable. Dr Nguleka said the increased interest rates have resulted in most farmers’ defaults in repayment of loans resulting in their farms being repossessed. She, however, said ZNFU is in dialogue with financial institutions on the repayment plan that can help farmers settle their loans while they continue with their activities. Citing the mining sector, Dr Nguleka said there is also need to have incentives for the agricultural community to boost the industry. On enhancing productivity, ZNFU, in collaboration with National Savings and Credit Bank, is providing loan facilities to small-scale farmers for mechanisation under the Bunjimi Assets Plus loan scheme. Under the scheme, small-scale farmers and emergent farmers have access to commercial credit in a sustainable manner that results in improved productivity. “Women farmers have realised that they cannot produce much with a hoe but rather with mechanised equipment. Those that are not in a position of buying farming equipment can hire so that they can increase volumes of produce,” Dr Nguleka said. On the outlook, Dr Nguleka said Zambia is expected to record another bumper harvest. She said the country is likely to experience enough rains in areas which previously had droughts. |
| Country | Zambia , Eastern Africa |
| Industry | Financial Services |
| Entry Date | 02 Sep 2016 |
| Source | https://www.daily-mail.co.zm/?p=77685 |
