A new credit facility named « Loan-A-Cow » that allows Zambian dairy farmers to access financing for their cows without having to provide collateral, has been launched on Monday, 25th of August 2014.
The new loan is a product of a partnership between the Zambia National Commercial Bank (ZANACO) and the Zambia National Farmers’ Union (ZNFU) and is aimed at small-scale and emerging dairy farmers.
The former can access funding through cooperatives while the latter can access as individuals.
As the lending bank, ZANACO will not require classic collateral such as title to land, but will instead use the animals as collateral, while revenues from milk production will finance the loans.
ZANACO Managing Director Bruce Dick, said the bank had continued to grow its loan book in the agricultural sector and was currently financing more than 20.000 farmers, adding: « We are determined more than ever to continue to explore innovative products and our focus now is on tractor and sugar outgrower schemes »
According to ZNFU, the new Loan-A-Cow credit has so far attracted 470 applications from farmers throughout Zambia, with more making inquiries.
Zambia’s milk production is currently set at a 452 million litres per year pace.