The European Investment Bank’s Development arm (EIB Global) says it is committing US$110 Million to strengthen agricultural development across Sub-Saharan Africa.
Zambia, alongside Malawi, Tanzania, Uganda and Benin are countries set to benefit from the loan financing, which will support the modernisation of processing plants of commodities such as cashew, soy as well as cardinal storage, transport and infrastructure.
The EIB financing takes the form of a loan given to an international commodities company (ETG), one of Africa’s leading agribusiness supply chain players.
The project also supports ETG’s Farmer Extension Services (FES) programme that is in line with its long-standing commitment towards promoting sustainable agriculture.
The services include training and technical assistance programmes to support technology and knowledge transfer to smallholder farmers, as well as community based initiatives that will help farmers improve yields and adopt sustainable practices.
The announcement was made during a signature ceremony on the margins of the World Food Forum that took place in Rome, by the European Investment Bank (EIB) Vice-President, Gelsomina Vigliotti.
Ms Vigliotti stated that by unlocking sustainable investment, EIB is helping smallholder farmers and rural communities to build a more resilient future.
“This partnership with ETG shows how targeted private-sector engagement, supported by EIB Global, can deliver real change,” added Ms Vigliotti.
Meanwhile, ETG Chief Treasury Officer, Paul van Spaendonk, welcomed the new agreement, citing that this will propel efforts to foster food security in the region.
“This significant financing will accelerate our efforts to enhance agricultural competitiveness and food security across Sub-Saharan Africa,” he said.
This is according to a press statement issued to ZANIS today by EIB Media Officer, Harriet Ongaki.
