GOVERNMENT has appointed Finance Bank Zambia Limited to manage a K542.2 billion Irrigation Development Fund (IDF) to empower farmers enhance their productivity.
This follows Government’s allocation of resources to the Ministry of Agriculture and Cooperatives to establish and operate a revolving fund.
According to information obtained by the Mail yesterday the revolving fund will initially run over a five-year period.
The statement issued by Finance Bank says the aim of the Fund is to empower indigenous farmers to expand their production base, productivity and stability of irrigated farming systems using improved irrigation technologies and services.
The target beneficiaries of the funds are small and medium scale farmers, large-scale farmers and manufacturers of irrigation equipment.
Under the Small and Medium scale, loans available range from K2 million to K50 million with repayment period in two to three years.
The purpose for the funds under this category is to enable digging of shallow wells, electrification, canals construction, boreholes, treadle pumps and other water lifting devices.
For those large scale and out-grower promoters, the loans range from K51 million to K499 million repayable in three to five years.
The money applied for should be either for centre pivots, dams, canals and other commercial irrigation systems.
The bank has also included manufacturers of irrigation equipment for working capital, purchase of small equipment and construction of manufacturing plants.
Recently, President Mwanawasa launched the irrigation development fund in Mazabuka.
Any body known the intrest rate on these loans? It will surely show Govt’s committedness to agric if they can subsidise these types of loan facilities.