Standard Chartered Bank has given a US$ 140 million loan to the Food Reserve Agency for maize purchase.
The Bank has already paid the first payment of US$ 25 million to the FRA while the remaining would be paid in batches over the next few weeks.
Standard Chartered Bank Head of Corporate Affairs Southern Africa Luke Njovu said the syndicated finance structure would enable FRA purchase over 470,000 tonnes of maize from over 300,000 small scale farmers.
Mr. Njovu said in a statement released to ZANIS in Lusaka today that Government is guaranteeing 30 percent of the value of the loan as equity contribution.
He said the facility would also contribute to the country’s stable food supply and the Gross Domestic Product (GDP) through the exportation of surplus stock.
Mr. Njovu said the loan was the largest ever agricultural deal in Zambia.
He said it would also help the FRA deliver on its parliamentary mandate to administer national strategic food reserves, manage grain storage facilities and provide a market to small scale farmers
And Standard Charted Bank Chief Executive Officer Mizinga Melu expressed pride in the role her bank was playing in the expansion of Zambia’s agricultural sector.
The loan would enable the agency pay its farmers and buy more maize from mainly small scale farmers who produce 80 percent of the staple crop.
The country recorded a record bumper harvest of 2.7 million metric tonnes of maize in the 2009/2010 farming season.
And a statement issued to ZANIS over the weekend revealed that FRA had so far paid out 306 billion kwacha to farmers countrywide with the latest release of 80 billion kwacha for the maize sold to the Agency.
ZANIS
Kindly educate me. Every year in every year out. Money is allocated. Who pockets the profits and whole eats the capital. Should this call for political change in administration as well? My puzzle to discover is when peasant farmers will change/improve their status to something better. An emergent farmer. Who fools who? Others profit from farming while others remain in the same status quo, are the electorate to blame or those who are elected. Who should play the victor in this sense? A private company will probably be more ideal. The issue is however a paradox. May be a change of Govt can provide a solution. I wonder. I will go for a pro poor something in 2011. I will never be ashamed of my vote.
How come the GRZ is only able to access finances now? Is there any planning at all in this GOVT? the president announced the start of the marketing season even beofre the maize was dry. Had he secured finances when he was announcing the start of maize buying?
And where are we getting all the money to build hospitals, schools etc? Are we borrowing or they are our funds? I can see us getting back to the debt situation we were in some years back. All this government is after is to get back into power but they do not mind the nkongole they will leave for our children to pay back.
How does FRA get a syndicated loan in USD and not Kwacha from banks for maize purchase when STANDCHART operates in Zambia and could have arranged or advised the Government/FRA to get that loan in kwacha. STANDCHART acted in its own interest as the administrative bank of the syndicated loan because they will make a lot through exchange rates and after all the money is in their bank. Or are the farmers being paid in dollars? if that’s the case, then a USD loan makes sense otherwise i see no reason why a USD loan should be granted if Kwacha will be paid to farmers. These are unnecessary costs for the nation:((:(([-( More debts for Mother Zambia[-(
How does FRA get a syndicated loan in USD and not Kwacha from banks for maize purchase when STANDCHART operates in Zambia and could have arranged or advised the Government/FRA to get that loan in kwacha. STANDCHART acted in its own interest as the administrative bank of the syndicated loan because they will make a lot through exchange rates and after all the money is in their bank. Or are the farmers being paid in dollars? if that’s the case, then a USD loan makes sense otherwise i see no reason why a USD loan should be granted if Kwacha will be paid to farmers. These are unnecessary costs for the nation:(( :(( [-( More debts for Mother Zambia [-(
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