The International Fund for Agricultural Development (IFAD) has come to an agreement with the government of the Republic of Zambia in which they have signed a USD 26.315 million loan agreement to be used to offer rural financial services to smallholder farmers in rural communities.
The Zambia Rural Finance Expansion Program, which will be managed by the Zambia Ministry of Finance through its Investment and Debt Management Department, will increase access to and the use of sustainable financial services for 140,000 rural households and will offer new opportunities for financial service providers to provide services to customers in rural areas.
According IFAD, because Zambia agriculture accounts for approximately 20% of the overall GDP and offers numerous opportunities for investment, the sector will benefit greatly from diverse rural financial services.
The program will be co-financed through a loan from IFAD directly, a loan from the IFAD managed Spanish Food Security Cofinancing Trust Fund and a direct contribution from the government of Zambia.
IFAD has invested USD 188.5 million in Zambia since 1981 costing a total of USD 315.3 million including co-financing.