More than 60% of Zambia's population is said to be employed by the agricultural sector and mainly cultivating rain-fed maize annually. Estimates are that less than 10% of this sector is mechanized beyond animal drawn ploughs. Making Zambia rank among the lowest in agricultural mechanization. In the recent past, the call for economic diversification to agriculture from mining has seen calls for agriculture mechanization come up by the central government and stakeholders. Partnerships such as AFGRI and the National Savings and Credit Bank (Natsave) have been successful but only provide brand new equipment and this precludes a large number of farmers especially the small-scale farmers.
Aid for TradeTM and Appropriate TechnologyTM mechanization are initiatives designed by Oasis Asset & Fund Managers, Schweizer Agri and Kachi Agri Micro Finance to provide finance for UN bankable small scale farmers through pension funds, insurance companies, and local commercial banks in Zambia by using warehouse receipt system of banked crops at a local registered commercial agro dealer.
To apply for a small-scale holder' handheld tractor, grain processing mills or value addition operating leases, finance lease or hire purchase click here to download the application form for hire purchase.
Micro financing remains a vital source of capital for agricultural producers. Initiatives such as out growers Input Support Scheme, Aid for TradeTM’s risk-sharing programme in Zambia, will have leveraged technology to develop new ways to provide loans to farmers such as through the COVID-19 Agriculture & Agribusiness Stimulus Package (Structured Inventory Product)”.
Aid for TradeTM is a farmer App designed to help 150, 000 small scale farmers access lower cost of agriculture finance and manage the risks of lending to them, manage the micro finance’ operating expenses and still remain well above global levels.
Aid for TradeTM is linked to processors, millers and organized markets sealed through a supply contract and loan repayments are linked to local kiosks with mobile banking and payments features designed to manage or drastically cut transaction costs, facilitate access to financial services such as insurance, savings and credit. In addition, Aid for TradeTM digital financial services will generate data to help our investors and lenders de-risk their offering by better understanding small-scale farmers and the rural economy.
Ultimately this “Will improve information about a borrower’s intentions and ability to repay their loans, psychometric technology will be used in various communities and biometric technology will also be used as a cost-effective way of applying ‘Know Your Customer’ requirements when enrolling rural clients who often do not have identification documentation.”
