State raises $2bn to boost agricultural output #zambia

THE Government has raised a total of US$2.125 billion for
the implementation of the National Agricultural Investment
Plan (NAIP) which aims at increasing agricultural
productivity.
About $2.730 billion is required for implementing the NAIP
in line with the Comprehensive Africa Agricultural
Development Programme (CAADP) over the next five years
from 2014 to 2018.
Agriculture and Livestock Minister Wylbur Simuusa said the
resources for the execution of the agriculture plan have
been mobilised by the Government and other partners
amounting to $2.125 billion.
He said financial resources to meet the cost of
implementing the NAIP would come from the Government
allocation, cooperating partners and other stakeholders in
the sector.
Mr Simuusa said there was an estimated financing gap of
approximately $605.23 million over the next five years but
also indicated that the Global Agriculture and Food Security
Programme (GAFSP) had released some resources towards
the programme.
In an interview in Lusaka, Mr Simuusa said the GAFSP had
also contributed some funds towards the implementation of
the plan, saying that the financing gap had significantly
reduced.
"We have managed to secure a total of $2.125 billion to
carry out some of the programme as we look for other
resources to seal the financing gap," Mr Simuusa said.
"We have managed to get some resources from the GAFSP
and now you will see that the $605.23 million will reduce
and we don't have to raise all that money like now because
it is a five year programme," he said.
Mr Simuusa said the ministry was discussing various
financing options with the Ministry of Finance which include
issuing of the bond to seal the financing gap.
Recently, Mr Simuusa said the Government was considering
issuing another $1 billion international bond specifically
targeting the agricultural sector.
The eurobond could be issued before the end of 2014 which
he said would specifically deal with financing challenges in
the agricultural sector.
The NAIP was launched last year.
CAADP aims at achieving and sustaining a higher path of
economic growth through agriculture-led development on
the African continent by country allocating at least 10 per
cent of its annual budget towards agriculture.
In Zambia, CAADP implementation is intended to support
and strengthen the implementation of National Development
Plans such as the Sixth National Development Plan.