Government Releases K3 Billion to Clear Farmer FRA Payments

Government Releases K3 Billion to Clear Farmer FRA Payments

The Food Reserve Agency has begun disbursing K3 billion to clear grain-supply arrears for the 2025 marketing season, with verified farmers expected to receive payments by early next week. Announcing the move in Lusaka on Thursday, FRA executive director Chola Kafwabulula said the release followed direct Treasury funding aimed at boosting rural liquidity and farmer confidence.

He explained that the funds cover maize, soya and paddy rice deliveries to FRA depots nationwide. “Verification teams have completed checks in all provinces, and payments are being made through the banking system to ensure transparency,” he said. Agriculture Minister Reuben Mtolo Phiri described the disbursement as evidence of the government’s commitment to timely market support ahead of the planting season.

Economists say the cash injection will stimulate rural spending while contributing to price stability in the grain market. Farm unions welcomed the move but urged the state to accelerate warehouse receipting and value-addition schemes to absorb future surpluses.

At the same time, the Zambia Statistics Agency reported October’s annual inflation eased to 11.9 percent from 12.3 percent in September. Statistician-General Mulenga Musepa cited slower food and transport price growth and a more stable kwacha. The agency expects continued moderation if energy and import costs remain steady.

Finance Minister Situmbeko Musokotwane told reporters that recent World Bank and IMF engagements reflected confidence in Zambia’s reform agenda under the Eighth National Development Plan. He said multilateral support would strengthen social protection and infrastructure financing. Mining output also showed positive momentum: First Quantum Minerals confirmed third-quarter production rose on higher ore grades and equipment optimisation, supporting foreign exchange earnings.

In energy and infrastructure, Kafue-Zambezi solar and irrigation programme is set to expand nationwide, bringing off-grid power and water to rural communities. An African Development Bank facility is injecting US$1 million into the Bauleni water project through Lusaka Water and Sanitation Company, benefiting 20,000 residents.

These combined moves are consolidating macroeconomic stability after years of volatility. However, they be warned that sustained impact depends on energy reliability and continued agricultural support to prevent supply-driven inflation.

The Treasury says further payments to farmers will be linked to verification progress and cash flow plans for quarter one of 2026. Market analysts expect the inflation trajectory to stay downward as grain payments and new harvest supplies improve availability.