FROM FINANCE TO FARM PROSPERITY

How the Zambia Agriculture Value Chain Facility is Unlocking a New Era of Agricultural Growth

By Penjani Nzima

For decades, access to affordable finance has remained one of the biggest obstacles preventing Zambia's agriculture sector from reaching its full potential.

While farmers possess the land, the passion, and the determination to feed the nation, many have struggled to access the capital needed to expand production, invest in modern technologies, and build resilient agricultural enterprises. Today, however, a transformative initiative is rewriting that narrative.

The Zambia Agriculture Value Chain Facility (ZAVCF),spearheaded by the European Investment Bank (EIB)—the lending arm of the European Union—in partnership with local financial institutions, is opening new doors for agricultural businesses, smallholder farmers, women, and youth across Zambia.

More than just a financing programme, the facility represents a strategic investment in Zambia's agricultural future, strengthening value chains, creating jobs, supporting sustainable farming practices, and driving inclusive economic growth.

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A Lifeline for Agricultural Transformation

Agriculture remains the backbone of Zambia's economy, employing more than 70 percent of the population and contributing significantly to national food security and rural livelihoods. Yet despite its importance,access to affordable credit has often remained beyond the reach of many farmers and agri-businesses. The Zambia Agriculture Value Chain Facility seeks to bridge this gap.

By partnering with local banks such as Zambia Industrial Commercial Bank (ZICB), the European Union and the European Investment Bank are helping reduce lending risks while increasing the flow of affordable financing to agricultural enterprises.

The facility combines credit lines, risk-sharing mechanisms, technical assistance, and grant support, creating a comprehensive package designed to empower agricultural businesses at every stage of the value chain.

Galaunia Farms: A Story of Growth Through Access to Finance. Among the beneficiaries of the programme is Galaunia Farms in Lusaka.

According to Managing Director Nigel Mark Lacey, access to suitable financing has become a critical ingredient in the farm's success story.

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

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