Standard Chartered Bank Zambia has given the Food Reserve Agency (FRA) a US$140 million loan for the purchase of maize.
Standard Chartered Bank Zambia Head of Corporate Affairs Luke Njovu said in a statement released today that the first payment of US$25 million has since been paid to the FRA, with subsequent disbursements to be made over the course of the next few weeks.
Mr Njovu said the syndicated financing structure would enable the FRA to purchase in excess of 470,000 tons of maize, benefiting over 300,000 of Zambia’s small-scale farmers by empowering them to receive a fair market-related price for their crop.
He said the facility also contributes to the country’s staple food supply, as well as GDP revenue through the exportation of surplus stock.
Mr Njovu revealed that the Zambian Government is guaranteeing 30% of the value of the loan as equity contribution.
He added that being the largest ever agricultural deal of its kind in Zambia, the loan will enable the Food Reserve Agency to deliver on its mandate to administer national strategic food reserves, manage grain storage facilities and provide a market to local small-scale farmers, especially those based in disadvantaged remote areas.
And Standard Chartered Bank Zambia Chief Executive Officer Mizinga Melu expressed the Bank’s pride in playing a leading role in the expansion of Zambia’s agricultural sector.
Mrs Melu said her bank is proud to partner with the FRA to deliver sustainable economic value and benefits to Zambia and her neighbours in facilitating intra-African trade in soft commodities.
And FRA Executive Director Dr Anthony Mwanaumo described the deal as pioneering in its scale and as such, is valuable in enabling the FRA to extend its reach and delivery within its mandate to support farmers and the local agricultural sector.
He disclosed that already the FRA has been approached by Namibia, DRC and Zimbabwe who are interested in purchasing the excess stock.
Dr Mwanaumo added that the FRA appreciates the involvement of Standard Chartered Bank Zambia, Investrust Bank and Audit Control and Expertise Global (ACE) for ensuring that they access the facility.
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The harvest this year is a good job for all hard working zambians,and this precedent can be replicated for years to come in an effort to achieve food security if the country and the continent as a whole as to achieve a long awaited economic growth.Banks responsibility in dealing with Africa should be encouraged and commended.FRA,should use the meager resources efficiently and particularly to deal with the storage facility because the country is in a hurry to eradicate extreme poverty or hunger if u like.Keep it up hard working zambian farmers and the country loving contributors to development of mother Zambia and the continet as a whole….!