Only 1 percent of farmers have access to loans -Dora

Wed, 23 Nov 2016 10:30:46 +0000

By Nation Reporter LESS than one percent of farmers have access to loans from commercial banks or are registered as business owners, says Agriculture Minister Dora Siliya.

The minister also decried that fact that, despite having the potential to drive the economy of the country, most people were shunning farming because they do no perceive it as a business. She reiterated that the agriculture sector in Zambia was limping because less than one percent were registered agriculture related businesses and that only one percent of farmers have access to loans from commercial banks.

Speaking at a Zambeef cocktail reception to mark the successful raising of us$65 million of capital from CDC group plc, the minister also said that the sector was not rosy because 94 percent of land needed for agriculture activities was still in traditional hands. “This takes away the opportunity for potential businesses to leverage land for accessing financing” she said. Ms Siliya bemoaned the ignorant mentality people had towards farming in Zambia, and that it was the main reason the sector was still stunted.

She explained that people perceived farming as an undertaking for subsistence consumption and that it was for elder people. Ms Siliya noted that most of the youth, whom she said represented over 60 percent of Zambia’s population, were not involved in farming. “Energetic youths needed in the agriculture sector are crowded out of farming and they represent over 60 percent” she said. Ms Siliya said that the agriculture sector was the defector ministry of labour because it employed over 70 percent of the population and that almost 80 percent earned their living in some way from agriculture. She also wondered why the sector was only contributing nine percent to the growth of the economy when it had the largest employment base. Meanwhile, Ms Siliya congratulated Zambeef for being the leading agribusiness in the country, supporting local suppliers and for employing over 6000 local people.