The Zambian Government is considering issuing another international bond specifically targeted for the agriculture sector.
The latest Eurobond is earmarked to be in the region of US$ 1 billion and could be issued before the end of 2014.
Agriculture Minister Wilbur Simuusa confirmed that his Ministry is working closely with officials at the Ministry of Finance to prepare paper work for the deal.
Mr Simuusa said the Eurobond is relevant because it will specifically deal with financing challenges in the agriculture sector.
He said the past two international issuances have mainly targeted large infrastructure projects such as roads and bridges but that this new bond will be agriculture centered.
“We want something specific to agriculture. All the two Eurobonds have mainly gone to ZESCO, Zambia Railways, DBZ and the like and the agriculture sector did not receive much and so we are hoping that this Eurobond kicks off so that we can have our own financing for agriculture development,” he said.
Mr Simuusa said there is a huge financing gap for agriculture in Zambia as outlined in the National Agriculture Investment Programme (NAIP) which needs to be closed.
Zambia has over the last two years issued two international bonds on the international bond market ranging from US$ 750 million and US$ 1 billion.