INCLUSIVE GROWTH -AN AVENUE FOR AGRICULTURAL DEVELOPMENT By Natasha Mhango

Robertson Tembo -Chairperson of the Copperbelt Organic Honey Cooperative which is a beneficiary of one of the ZATP grants 

The recently held Zambia International Trade Fair was conducted under the theme Inclusive Growth through Entrepreneurship. As Africa continues to be a net importer of agricultural products despite the continent possessing around 60% of arable land, one of the most plausible solution is to make agribusiness more inclusive to include the main producers ie. small scale farmers.

However, access to market continues to be a grave challenge for most small scale farmers in Zambia; and yet it is the key with which farmers can unlock the potential of their agricultural investments.

The theme for the 2019 ZITF compels many to question what can be done to enable the growth of agribusiness which is inclusive and creates an environment where access to credit for small scale farmers is also a significant impediment.

Some of the key elements of inclusive growth include:
poverty reduction, agricultural development, industrial development and reduction in regional disparities among other things.

According to former UNDP Chief Economist and Head of the Strategic Advisory for Africa, Thangavel Palanivel, “Growth is inclusive when it takes place in the sectors in which the poor work (e.g. agriculture); occurs in places where the poor live(e.g. undeveloped areas with few resources); uses the factors of production that the poor possess (e.g. unskilled labour); and reduces the prices of consumption items that the poor consume (e.g. food, fuel and clothing).”

This entails that a multi-sectorial approach is required to enhance inclusive growth in various economic sectors particularly in the agricultural sector. It also requires that financial institutions take a risk and enhance access to credit to small and emergent farmers. An estimated US$11 billion of investments annually is needed in sub-saharan Africa alone, in order to achieve expansion in agricultural output (www.agrifinfacility.org ). Such statistics highlight the need to aggressively invest in agribusiness particularly in the environments of small scale farming communities.

The World Bank supports such agricultural investments whose aim is to enhance farmers’ market and credit access. These projects focus primarily on the delivery of credit through matching grants as well as technical assistance.

The Zamia Agribusiness and Trade Project (ZATP) is one such venture. This World Bank-funded project which is being implemented under the Ministry of Commerce, Trade and Industry aims at enabling farmers grow their agriculture into sustainable businesses.

The US$ 40 million Project, which started in 2017, comprises various components which are referred to as productive alliances and market connect. These are targeted at two sets of clients - small scale and emergent farmers; and SMEs respectively, in order them to increase their entrepreneurial capacity.

“We are trying to link the main the producers of the main farming commodities in Zambia to the main buyers of those commodities…We want our farmers and SMEs to start-up businesses,” Chiza Ludaka who is Project Officer for ZATP explained.
The ZATP’s objectives in the small scale farming community are being implemented through agricultural cooperatives – 150 cooperatives in total have been targeted in Central, Copperbelt, Lusaka, Eastern and Southern provinces.

“ …we are offering technical assistance, we are offering capacity building and we are offering what we call productive investments [which] come in form of matching grants,” Mr. Ludaka said.

Farmers who have a business plan can apply to ZATP and are eligible to receive fund upto 70% of their business costs in form of matching grants. The competitive advantage lies in how innovative and diversified the business proposal is because the Project also intends on promoting agricultural diversification. One success story from the ZATP efforts are the Copperbelt Organic Honey Cooperative.

Beekeeping in Zambia is a lucrative farming practice given that 66% of the country is covered with woodland and dry forests. Furthermore, most of Zambia’s honey is organic and is generally favored on regional and international markets.

Roberston Tembo is the Chairperson of the Copperbelt Organic Honey Cooperative – a farming group that has been able to establish itself with the help of ZATP to the tune of K990,000.

The Cooperative which is close to a year old is already under pressure to increase production in order to meet the local market demand while at the same time, attempting to access international markets.

“When we started looking at ways to increase our production, we set our targets to installing 2,000 beehives…Considering that we were new in the business, we turned to the Zambia Agribusiness and Trade Project so that they can help us start our business as well as improve our processing capacity by acquiring new processing equipment,” Mr. Tembo.

He confirmed assertions that most honey producers lack sufficient market information and entrepreneurial skills but added that working through cooperatives are an effective way through which farmers who lack necessary skills and information can be included in agricultural development.

“A cooperative is comprised of people with various capabilities – some are good in business, some are not so good…Those who are not so good will learn from those who are good together we can grow and benefit from a common effort,” Mr. Tembo said.

Entrepreneurship as group helps break barriers that exists between those who have access to finance and those who do not. It also helps create wider networks through which members of the group can benefit from their membership as individuals.

Africa spends about US$35 billion, annually, on importing food. It has been estimated that this cost is predicted to rise to US$110 billion. As such agribusiness is the key to meeting the rising demand for food – particularly processed food – among urban populations.