BREAKING FINANCIAL BARRIERS

Zanaco expands access to agricultural loans

BY MERCY NAMFUKWE

AGRICULTURAL financing in Zambia is undergoing a gradual transformation, as financial institutions increasingly moved away from traditional collateral-based lending models. It is noted that banks are placing greater emphasis on productivity, cash flow patterns and the integration of farmers into structured value chains.

This shift is reshaping how both smallholder and commercial farmers accessed credit, with emerging technologies, agritech partnerships and alternative security frameworks opening new pathways for financing across the agricultural sector.

Head of Agriculture Banking at Zambia National Commercial Bank (ZANACO), Joe Syafunko, stated that bankability referred to a farmer’s demonstrated ability and willingness to repay a loan. He explained that this included not only financial records, but also production capacity, farm management practices, market access, reliability of cash flows and risk mitigation strategies such as insurance or diversification.

Mr. Syafunko further said that the bank offers tailored credit solutions across the agricultural value chain, including input financing, asset financing, term loans for capital expenditure, working capital solutions such as Cash Management Accounts and structured trade finance for various players in the ecosystem.

He noted that there is a shift toward data-driven lending, where farmers with consistent production history, digital transaction records  and participation in organized value chains are better positioned to access financing.

Mr. Syafunko added that the bank focuses on cash flow analysis, farm productivity, technical expertise and contractual arrangements such as off-take agreements, alongside farmers’ track records and alignment with credible buyers.

Read full article in the July 2026 issue https://www.agricoopnews.com/e-publications

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