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Zambia - Natl Ag Policy 2012 To 2030 DRAFT-2011

This document presents the revised National Agriculture Policy (NAP) of Zambia for 2012-2030. It summarizes the key issues with the previous NAP from 2004-2015, which include low agricultural productivity, inefficient markets, a decreasing growth rate of exports, poor farmer access to resources and services, and weak public and private sector capacity. The revised NAP aims to address these issues by promoting sustainable increases in crop productivity, improving input and product markets, increasing agricultural exports, improving access to resources and services for farmers, and strengthening institutional capabilities. The NAP's vision is for a competitive, diversified and sustainable agricultural sector, and its goals include increasing agricultural GDP growth, the value of crop exports, and reducing

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0% found this document useful (0 votes)
271 views31 pages

Zambia - Natl Ag Policy 2012 To 2030 DRAFT-2011

This document presents the revised National Agriculture Policy (NAP) of Zambia for 2012-2030. It summarizes the key issues with the previous NAP from 2004-2015, which include low agricultural productivity, inefficient markets, a decreasing growth rate of exports, poor farmer access to resources and services, and weak public and private sector capacity. The revised NAP aims to address these issues by promoting sustainable increases in crop productivity, improving input and product markets, increasing agricultural exports, improving access to resources and services for farmers, and strengthening institutional capabilities. The NAP's vision is for a competitive, diversified and sustainable agricultural sector, and its goals include increasing agricultural GDP growth, the value of crop exports, and reducing

Uploaded by

Kahimbi
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REPUBLIC OF ZAMBIA

(FINAL DRAFT)
MINISTRY OF AGRICULTURE AND CO-OPERATIVES

THE NATIONAL AGRICULTURE POLICY


2012-2030

AUGUST, 2011
Table of Contents

Acronyms ii
Executive Summary iii

Chapter Page

PART I: REVIEW OF THE NATIONAL AGRICULTURAL POLICY 2004-2015

1. INTRODUCTION 1
1.1 Background 1
1.2 Public Investment in Agriculture Development 2
1.3 Contribution of the Agricultural Sector 3
1.3.1 Agriculture Gross Domestic Product 3
1.3.2 Increasing Agricultural Exports 5
1.3.3 Increasing Access to Agricultural Input and Product Markets 5
1.3.4 Reducing Food Insecurity and Poverty 6
1.4 Institutional Capacity of Public and Private Sector 8
1.5 Summary of the Key Issues 10

PART II: REVISED NATIONAL AGRICULTURAL POLICY 2012-2030

2. REVISED NATIONAL AGRICULTURAL POLICY 11


2.1 Vision. Mission, Core Values and Goals 11
2.2 National Agriculture Policy Objectives 2012-2030 12
2.2.1 Promote Sustainable Increase in Crop Productivity 12
2.2.2 Improving Efficiency of Agricultural Input and Product Markets 13
2.2.3 Increasing Agricultural Exports 13
2.2.4 Improve Access to Productive Resources and Services 14
2.2.5 Strengthen Public and Private Sector Institutional Capabilities 15

3. IMPLEMENTATION OF THE NAP 2012-2030 16


3.1 Participatory Implementation 16
3.2 Commitments 16
3.2.1 The Government of Zambia 16
3.2.2 Cooperating Partners’ Commitments 16
3.2.3 African Union and Regional Partners’ Commitments 17
3.2.4 Commitments of the Private Sector and Civil Society 17
3.3 Coordination, Oversight and Implementation Capacities 17
3.4 Legal Framework 18
3.5 Mobilisation of Funding 20
i
List of Tables
1. Types of Farmers in Zambia 1
2. Annual Agricultural Budget Allocations (K billions) 2
3. Trends in Yield/Hectare for Selected Crops 2004-8 4

List of Figures
1. Crop Production Shares in 2010 4
2. Trends in Production of Staple Crops 4
3. Trends in Agriculture GDP 4
4. Trends in Agricultural Exports 4

List of Boxes
1. Summary of the Key Issues Affecting Performance of the Agriculture Sector 10

ii
Acronyms

AgSAG Agriculture Sector Advisory Group


AU African Union
CAADP Comprehensive Africa Agriculture Development Programme
COMESA Common Market for Eastern and Southern Africa
CPs Cooperating Partners
CSO Civil Society Organisations
FSP Fertilizer Support Programme
FISP Farmer Input Support Programme
FNDP Fifth National Development Plan
GDP Gross Domestic Product
GRZ Government of the Republic of Zambia
HIV/AIDS Human Immunodeficiency Virus/Acquired Immune Deficiency Syndrome
JASZ Joint Assistance Strategy for Zambia
MDGs Millennium Development Goals
MLF Ministry of Livestock and Fisheries
MACO Ministry of Agriculture and Cooperatives
MoFNP Ministry of Finance and National Planning
NAP National Agriculture Policy
NEPAD New Partnership for Africa’s Development
NDPs National Development Plans
PAF Performance Assessment Framework
PRBS Poverty Reduction Budget Support
SADC Southern African Development Community
SNDP Sixth National Development Plan
ZCC Zambia CAADP Compact

iii
Executive Summary

Following various stakeholder observations on the National Agriculture Policy (NAP 2004-2015), MACO launched its
review in 2010. The review was to culminate in the preparation for the Revised NAP 2012-2030. Literature review,
limited participatory consultations, and written submissions were employed as the basis for obtaining stakeholder
input in developing proposals for demand-driven agriculture policy and an inclusive coordination of its implementation.

The review of NAP 2004-2015 has revealed that:


a) Zambia has in general liberalised the economy and that the emerging stable macroeconomic environment is
attracting significant private sector investment, resulting in GDP growth rates greater than 6% per annum;
b) The performance of the agriculture sector has been below expectations in that the growth rate of the sector at
1.5% is less than the population growth rate of 2.8% and the CAADP target of 6%; exports mainly consist of
primary products and the total value is increasing at a decreasing rate; poverty and food insecurity are still high
among those who depend on agriculture;
c) The agriculture sector reform programme has not yet been fully and consistently implemented and as a result,
private sector investment and the sector growth rates are relatively low. Therefore, there is need to ensure that
complementary sector policies are implemented and to improve the legal environment to attract significant
private sector investment;
d) Improved sector coordination through creation of viable and effective partnerships among GRZ, private sector,
NGOs, community-based organisations, and donors are important for agriculture development;
e) Inefficient, inadequate and expensive credit is constraining agriculture sector growth as farmers cannot obtain
appropriate inputs, machinery and equipment to increase production. In Zambia, some out-grower schemes
provide successful models for increasing access to inputs and extension services;
f) Zambia needs to quickly strengthen research and extension services to enhance productivity and
competitiveness to enable her to take advantage of the huge opportunities that are emerging in national,
regional and international agriculture markets;
g) Demand-driven integration of production with processing and value-adding strategies and technologies are
important for agriculture development;
h) Globalisation and the eventual elimination of subsidies imply that there is urgent need to increase small scale
farmer productivity and integrate into the production and supply chains.

In summary, Zambia stands on the verge of agriculture prosperity but there are a number of weaknesses that need to
addressed to improve the performance of the agricultural sector. These include:
(i) low agricultural productivity among small scale farmers;
(ii) inefficient input and output agricultural markets;
(iii) decreasing rate of growth of agricultural exports;
(iv) poor small scale farmer access to productive agricultural resources and services to increase production; and
(v) the weak public and private sector capacity to facilitate planning, resource mobilisation, implementation,
monitoring and evaluation of agricultural policy and regulatory provisions.

iv
In line with the national economic vision 2030, the derived agriculture vision is:
“A Competitive and diversified agricultural sector driven by equitable and
sustainable agricultural development”

The mission of the agricultural sector is:


“To facilitate the development of a competitive, diversified, equitable and
sustainable agriculture sector”

The core values of the agricultural sector are:


1) Equitable development of the agriculture sector;
2) Stable and consistent interpretation and implementation of the agricultural policies, decisions and
regulations;
3) Creation of economically sound agribusiness and public services opportunities;
4) High ethical public sector and business standards;
5) Promotion of production to meet the changing needs and desires of domestic and international markets;
6) Sustainable utilisation of the natural resources and the environment.
7) Efficient delivery of agricultural services

The goals of the agricultural sector are:


(i) To increase the annual growth rate of the real GDP;
(ii) To increase the value and growth rate of crop exports;
(iii) To contribute to reduction of poverty and food insecurity in rural and urban areas.

The objectives of NAP 2012–2030 are to:


(i) Promote sustainable increase in agricultural productivity of major crops with comparative advantage;
(ii) Continuously improve agricultural input and product markets so as to reduce marketing costs of
agribusiness, including small-scale farmers and farmer groups;
(iii) Increase agricultural exports to preferential markets at regional and international levels;
(iv) Improve access to productive resources and services for small-scale farmers, especially women and young
farmers, in outlying areas to enable them to increase production of staple foods, including fruits and
vegetables, for own consumption and the surplus for income generation;
(v) Continuously strengthen public and private sector institutional capabilities to improve agricultural policy
implementation, resource mobilisation, agriculture research, technology dissemination, and implementation
of regulatory services.

The revised NAP 2012-2030 provides policy recommendations and action areas to enable agribusiness to produce
and commercialise in an environment with clear rules that are predictable and stable, with the government focusing
on facilitating, supporting and providing incentives for productive activities.

It is important to note that no one institution has capacity to implement the proposed action areas. The revised NAP
2011-2030 marks the beginning of strong partnership and teamwork between farmers, agribusiness, public sector,
civil society, and development partners. Each partner is expected to integrate the implications of the revised NAP
2011-2030 objectives in their strategic plans and work plans. Timely and sustained implementation of the various
action areas shall lead to significant increase in production, exports, and reduction of food insecurity and poverty,
especially among those who predominantly depend on agriculture. This will ensure that Zambia utilises the massive
agriculture potential as a way of significantly contributing to the realisation of the national economic vision 2030.
v
Implementation of the revised NAP requires efficient utilisation of both national and donor resources. At the same
time, the government and cooperating partners will mobilise funding from both domestic and external sources. The
government and other partners will make their funding commitments once detailed and prioritised investment
programmes and budgets have been developed. In addition, private sector contribution shall come from commercial
banks, financing institutions facilitated by government, and out-grower schemes. It is hoped that commercial banks
shall overcome their administrative deficiencies and fears to increase agriculture credit on affordable terms.

It is recognised that there are both capital and human capacity limitations within the public sector and therefore it will
be important to share NAP 2012-2030 implementation responsibilities with all key stakeholders. Therefore, MACO
shall focus on the core-functions and encourage the other stakeholders to supplement the efforts on the basis of
comparative advantage. In areas where there is a clear case of market failure, the government shall enlist the input
of all stakeholders in designing and implementing transitory institutions and or arrangements to address the
constraints.

vi
PART I: REVIEW OF THE NATIONAL AGRICULTURE POLICY
2004-2015

1. INTRODUCTION

1.1 Background

Approximately 58% (42 million hectares) of the land in Zambia is of medium to


high crop production potential. In 2004, only 14% of total arable land was utilised
for crop production. Therefore, the prospects for increasing the expanse of
cultivated land and the volume of agricultural production are very high.

Farm land is obtained through two main land tenure systems, customary and
leasehold. While the customary system accounts for 94% of farmland, the
leasehold system accounts for only 6%, with title deeds being issued for a
renewable period of 99 years. However, out of the estimated 1.5 million small
scale farmers, only 3% have title deeds. The lack of title deeds, in many cases,
discourages small scale farmers from adopting a sustainable, long-term land
management approach. As a consequence, they are unable to access loans
using the land as security.

In addition to the vast expanse of arable land, Zambia also has extensive surface
and underground water resources which can be used to irrigate nearly 2,750,000
hectares of which 423,000 hectares is readily available for development. Based
on the Ministry of Agriculture and Cooperatives (MACO) estimates in 2004, only
155,912 hectares (37%) of the readily available land was actually irrigated. The
factors affecting the utilisation of irrigation potential include inadequate access to
long-term credit, poor extension services, inadequate involvement of farmers in
management of irrigation projects, poor understanding of farming systems;
dependence on government and donor assistance; marginalisation of marketing
and production support services; inadequate efforts in the strengthening of
relevant institutions, and poor land tenure arrangements.

In 2010, the population of Zambia was approximately 13,046,508 persons with


an average annual growth rate of 2.8%. Nearly 61% of the population lives in
rural areas where they are predominantly engaged in the production of crops,
especially staple foods (Table 1). Despite previous interventions, agriculture
production is still dominated by small scale farmers who mainly depend on their
own labour and the hoe technology to meet subsistence needs. However, labour
availability is constrained by the high prevalence of HIV/AIDS in Zambia (15%),
which results in loss of progressive farmers and staff. This has adverse
implications for productivity.

Table 1: Types of Farmers in Zambia


Characteristics Small Scale Farmers Medium Scale Large Scale
Farmers
Number of farmers 792,212 20,728 2,052

1
Farm size (Ha) Less than 5 5 to 20 More than 20
Crops grown Food Food/cash Cash
Type of production Subsistence and occasional Commercial Commercial
sales
Source: CSO [2001]

Despite the fact that approximately 80% of the producers of food are women,
they face gender-based constraints, such as inequalities in access to land, credit,
services, training, extension services, and representation in policy-making and
planning. As a result, women do not adequately respond to the opportunities
being created by the liberalised environment.
Between 2004 and 2015, the objectives of the National Agricultural Policy (NAP
2004-2015) were to:
1) Ensure national and household food security through all-year round
production and post-harvest management of adequate supplies of basic
foodstuffs at competitive costs.
2) Contribute to sustainable industrial development by providing locally
produced agro-based raw materials.
3) Increase agricultural exports thereby enhancing the sector's contribution to
the national balance of payments.
4) Generate income and employment through increased agricultural
production and productivity.
5) Ensure that the existing agricultural resource base is maintained and
improved upon.

1.2 Public Investment in Agriculture Development

The Government has declared agricultural development as a priority in poverty


reduction and food insecurity and is committed to increasing the agriculture
budget. Between 2004 and 2010, the agriculture budget allocations varied
between 5% and 8% of the total national budget (Table 2), indicating that Zambia
has yet to comply with the 2003 AU (African Union) Maputo Summit decision of
allocating at least 10% of the budget. In 2011, the Government signed the
Comprehensive Africa Agriculture Development Programme (CAADP) compact
and reaffirmed the commitment to allocate at least 10% of the national budget to
agricultural development.

Table 2: Annual Agricultural Budget Allocations (K billions)


Item Description/Year 2004 2005 2006 2007 2008 2009 2010

13,76 15,27 16,71


National Budget 5,988 7,267 7,730 9,054 1 9 8
Agric Budget (MACO & MLF) 237 330 457 663 787 1,074 1,134
Agric in other Ministries 67 83 65 71 104 189 84
Total Agric (GRZ) 304 412 523 734 890 1,263 1,218
Donor Budget (Agric &
Forestry) 62 108 200 405 339 159 N/A
Total Agric (GRZ+Donors) 366 520 722 1,139 1,230 1,422 1,218

FRA 47 59 140 151 80 100 100


2
FISP 98 140 184 205 187 435 430

% Agric (GRZ) 5 6 7 8 6 8 7
%Agric (GRZ+Donor) 6 7 9 13 9 9 7
%Donor in Total Agriculture
Budget 17 21 28 36 28 11 N/A
% FRA in Total Agriculture
Budget 16 14 27 21 9 8 8
% FISP in Total Agriculture
Budget 32 34 35 28 21 34 35
Source: MACO (2010)
MLF = Ministry of Livestock and Fisheries
GRZ = Government of the Republic of Zambia
FRA = Food Reserve Agency
FISP = Farmer Input Support Programme

In terms of utilisation of the agriculture budget, FRA and FISP allocations varied
from 62% in 2006 to 30% in 2008. These variations relate to the changing
number of target beneficiaries and the costs of implementing the subsidies. The
Government believes that the bias in the agriculture budget allocations to FRA
and FISP is needed to address the high level of poverty among small scale
farmers. However, the Government welcomes some of the recommendations to
minimise market distortions and improve targeting and general management of
these social programmes.

Over the years, donor support to agriculture development increased from 17% in
2004 to 36% in 2007. In subsequent years, donor support to the sector has been
declining. At the same time, some out-grower schemes are increasing support to
provision of selected public services, such as extension services and research.
However, both donors and the private sector are concerned about frequent
changes in policy interpretation, marginalisation of the core government services
in the agriculture budget, and crowding out of the private sector from providing
commercial services.

1.3 Contribution of the Agricultural Sector

The agriculture sector is expected to make significant contribution to economic


growth and reduction of food insecurity and poverty. NAP (2004-2015)
emphasised market liberalisation and promotion of private sector development
while accommodating the social obligations of the Government in addressing the
high level of poverty among small scale farmers. This section presents a
summary of the contribution of the agriculture sector to the increasing growth of
the GDP, development of efficient agricultural input and product markets,
increasing agricultural exports, and reduction of poverty and food security.

1.3.1 Agriculture Gross Domestic Product (AGDP)

Maize and cassava dominate crop production (Figure 1). Even though there is a
general upward trend, crop production varies from year to year due to the effects

3
of climate change, such as droughts and floods that lead to reduction in crop
yields (Figures 2). The agriculture sector contributes to climate change through
gas emissions and unsustainable production practices, such as shifting
cultivation practices that result in approximately 2.4% deforestation per year, and
using late fires to clear land, etc. Therefore, the agriculture sector will promote
production practices that minimise contribution to climate change, such as
conservation farming, tree planting, etc.

It is estimated that crops contribute approximately 65% of the Agriculture GDP


(Figure 3). Between 2004 and 2009, the agriculture share (crop, livestock,
fisheries and forestry) of the GDP decreased from 15% to 12.5% at an annual
average rate of approximately -3.82%. The decrease in agriculture GDP was
largely due to the relatively higher growth rates in other sectors of the economy,
especially the mining sector. Over this period, the average annual agricultural
sector growth rate of 1.3% was lower than the population growth rate (2.8% in
2010) and the targeted growth rate of at least 6% per year in the Millennium
Development Goal 1 (MDG1) and CAADP needed to reduce food insecurity and
poverty.

In view of the fact that the current crop varieties have high potential yields (Table
3), the slow agriculture sector growth rate is attributed to low productivity (output
per unit of inputs), especially among small scale farmers who obtain only 25-50%
of the yields of the large scale farms. The causes of low productivity include
inadequate resources for the purchase of inputs, use of inappropriate farming
practices that lead to soil degradation, rainfall variations, and the failure to fully
develop the irrigation potential. As a result, low productivity leads to high per unit
production costs, consequently constraining the sector’s ability to contribute to
growth, increased exports and employment, and reduced levels of poverty and
food insecurity.

4
Figure 1: Crop Production Shares 2010 Figure 2: Trends in Production
of Staple Crops

Source: MACO [2010] Source: MACO [2010]

Figure 3: Trends in Agriculture GDP Figure 4: Trends in Agricultural Exports

Source: MACO [2010] Source: Zambia Export Board [2009]

Table 3: Trends in Yield/Hectare for Selected Crops 2004-2008

Expected Yield Trend of Average Crop Yield


tons/Ha tons/Ha
Crop/Year 2004 2005 2006 2007 2008 2009 2010
Maize 7 1.93 1.04 1.82 1.57 1.31 1.68 2.25
Sorghum 0.5 0.52 0.33 0.48 0.4 0.41 0.54 0.81
Millet 0.6 0.67 0.47 0.69 0.38 0.75 0.79 O.85
Paddy Rice 4 0.95 0.73 0.97 0.91 0.95 1.35 1.44
Wheat 7 6.12 6.13 5.51 6.04 5.81 5.70 6.33
Cotton 2.5 1.19 0.88 0.78 0.61 0.66 0.84 0.85
Soya bean 3 1.65 1.38 1.31 1.42 1.75 1.84 1.80
Groundnut 2 0.60 0.46 0.58 0.37 0.49 0.56 0.61
Sunflower 2 0.45 0.26 0.38 0.31 0.39 0.47 0.49
Beans (dry) 1 0.40 0.46 0.51 0.43 0.75 0.56 0.77
Source: CSO/MACO [2010]
5
Note:Expected cassava yield rate has been estimated at 11.7 mt/ha nationally. This constant yield is applied
every year.
1.3.2 Increasing Agricultural Exports

Zambia has a relatively small population (13,046,508 people in 2010) and


therefore the domestic market cannot absorb significant increase in crop
production without the market collapsing. In order to unlock the huge agriculture
potential, Zambia has to secure access to regional and international markets.

The value of agricultural exports increased from US$ 156,907,680 in 2002 to


US$ 318,758,970 in 2008, i.e., 103% increase (Figure 4). In 2009, the major
agricultural exports were mainly primary products (69%) consisting of sugar
(24%), cotton lint (19%), tobacco (10%), coffee (6%), soyabeans (4%), maize
(4%), marigold (3%), fuzzy cotton (3%) and paprika (3%). In addition, Zambia
also exports horticulture (16%) and floriculture (13%) products. Most of the
agricultural exports to go to the EU and USA, where preferential trade
agreements have been the driving force, such as the Lome Convention and the
African Growth and Opportunity Act (AGOA).

The major concerns with regards to increasing agricultural exports are:


 Zambia has not yet fully utilised the export quotas in the EU and USA. In
addition, Zambia has yet to utilise the other trade agreements with India,
China, SADC, COMESA, etc.
 The total value of agricultural exports has been increasing at a relatively
slower rate due to lack of affordable capital to reinvest in the sector and
import appropriate inputs, including new planting material.
 That unless there is improvement in production and marketing efficiency,
Zambia may not hold on to her market share at the expiry of preferential
trade agreements and/or when trade is liberalised.
 The predominance of export of primary products implies that Zambia has
good prospects for the development of a vibrant agro-processing industry
in line with the requirements of the target markets.

1.3.3 Increasing Access to Agricultural Inputs and Product Markets

The Government recognises the important role of the private sector in developing
stable markets for inputs and primary products and investment in value-addition
and bulking to generate large volumes for transportation over long distances.
Therefore, a number of incentives have been implemented to encourage private
sector investment. For example, removal of customs and duty on most
agricultural machinery and equipment; capital expenditure allowance of 20% for
the first five years on farm improvements, etc. However, private sector
investment is still constrained by the following factors:

a) Incomplete Agriculture Market Liberalisation


In subsectors with minimum market distortions, the private sector response has
been good leading to significant increases in soya bean and wheat production as
many commercial farmers have reallocated resources from maize production. In
6
many cases, private sector investment is constrained by frequent changes in
policy interpretation and implementation, market distortions emerging from the
government involvement in supplying subsidised fertilizer and seed and maize
marketing; policies that favour trading and not value addition, biased
development tax concessions that do not favour small scale processing,
inadequate and inappropriate advice and market information, and lack of
knowledge and skills to identify reliable markets and efficiently manage
processing plants.
b) Inadequate Agricultural Credit
Private sector investment is also constrained by lack of appropriate credit
facilities to acquire equipment and other inputs. Farmers complain about
scarce and expensive agricultural credit, with interest rates of 20% to 30%, and
the bias towards the larger corporate sector where the administration costs are
relatively low. Farmers are also concerned about the predominance of short
term loans, the lack of long term loans, and the commercial banks’ delays in
processing loan applications. On the other hand, lending institutions are
concerned about the high risks in the agriculture sector and weaknesses and
delays in the legal processes to address violation of contracts. This points to a
possible case of market failure and therefore, the Ministry of Finance and
National Planning is coordinating consultations to develop a sustainable rural
credit institution.

c) Inappropriate Legislation and Regulations


The private sector operates efficiently in an environment with appropriate,
consistent and enforceable legislation and regulations. While the private sector
appreciates the progressive legislation on plant breeder’s rights that has provided
the necessary incentives to release new varieties, many agricultural laws and
regulations are not appropriate for private sector development. For example, the
Agricultural Credit Act of 2003 requires strengthening to facilitate quick redress
for credit defaulters. Similarly, the Agricultural Lands Act of 1994 requires
strengthening to shorten the land allocation and title deed processing period.
Furthermore, the Agricultural Products Levy Act of 1994 requires amendment as
it could be abused, while the Agricultural Fertilizers and Feeds Act of 1994
requires amendment to recognise fertilizer blends and other forms of fertilizer
and to establish an institution to monitor grades and standards. In addition, the
private sector is also concerned about the lengthy and weak enforcement of laws
and regulations as it discourages many institutions from seeking legal action.
The private sector is concerned about the unfair competition emanating from
subsidised government programmes such as FRA and FISP in the buying of
maize and supply of fertilizer and seed.

d) Poor Roads and Infrastructure


Farmers are located throughout the country and, for transporting their product to
buyers, often depend on a few transporters who charge high fares to offset the
high cost of depreciation and limited competition. Good rural roads and market
infrastructure are needed to take inputs to farmers on the one hand and to deliver
products to consumers at the lowest cost on the other hand. In view of the fact

7
that infrastructure development is expensive, there is strong justification to focus
on farm blocks and resettlement schemes as centers of agricultural development.

1.3.4 Reducing Food Insecurity and Poverty

Small scale farmers produce most of the staple foods consumed in Zambia and
some of the export crops and yet many experience high levels of poverty and
food insecurity.

a) Food Insecurity
The overall objective of the NAP 2004-2015 was to reduce the high levels of
malnutrition and stunting which stand at 20% and 54% respectively. The high
level of malnutrition and stunting indicate that while government efforts focus on
achieving self-sufficiency in staple foods, there is inadequate emphasis on
production of complementary food crops (such as vegetables, fruits and
legumes). Similarly, there is inadequate capacity to prepare nutritious meals to
ensure balanced diet. In addition, food production is not evenly distributed
among households, thus many households do not have adequate access to food,
especially among communities with little purchasing power.

b) Poverty
At 64%, Zambia’s poverty level is high, with the agricultural sector being the main
source of employment (72%) and income for most Zambians, especially women
who constitute 65% of the rural population. Therefore, measures to accelerate
agriculture sector growth must ensure that the benefits reach small scale farmers
to enable them to raise their incomes and standard of living.

c) Increasing Access to Fertilizer and Improved Seeds


Among small scale farmers, high levels of food insecurity and poverty arise due
to inadequate access to productive resources and services. In this regard, the
Government has been subsidising fertilizer and seed and maize marketing
through the Farmer Input Support Programme (FISP) and the Food Reserve
Agency as a way of encouraging small scale farmers to increase productivity of
maize, the major staple food.

FISP and FSP have been instrumental in increasing the number of farmers using
fertilizer and hybrid seed and have in general contributed to increased maize
production and rural purchasing power among some of the beneficiaries.
However, MACO-FISP is criticised for consuming approximately 31% of the
agriculture budget, thereby marginalising the provision of other supportive
agriculture services; crowding out the private sector and failing to facilitate the
creation of a liberalised fertilizer market to provide adequate and timely amounts
of fertilizer to all farmers; bias towards maize production even in areas with no
comparative advantage, perpetuating the use of compound D even if it is clear
that there are soil variations within and across farms; indirectly blocking the
development of a decentralised and competitive fertilizer blending industry in that
MACO-FISP prefers to buy the relatively more expensive fertilizer (compound D)
8
than the generally cheaper fertilizer blends (up to 40% cheaper in Malawi);
excluding lime as a part of the package on farms with acidic soils; failure to
facilitate the establishment of an independent fertilizer regulatory institution to
monitor fertilizer grades and standards; and weak extension services to improve
the efficiency of fertilizer use to increase productivity; failure to encourage local
mining of some of the nutrients for fertilizer production; and the restrictive tender
qualifications as suppliers are required to have at least 25% of the stock ready
for distribution in the country.

d) Increasing Access to Staple Food Markets


The Food Reserve Agency (FRA) was established to ensure national food
security and incomes of farmers by maintaining a sustainable national strategic
food reserve through purchasing of agricultural crops from small-holder farmers
who are located in economically disadvantaged areas in the country. Even
though the FRA has injected vast funds in rural areas (K1.3 trillion in 2010), the
following concerns have been raised: poor management of procurement
procedures, delayed payment to farmers, limited outreach to outlying areas,
uneconomic back-and-forth movement of goods to central storage and at times
back to production areas; and poor management of stocks resulting in high
losses.

The FRA is also seen as a major source of market instability in that operations
have been extended to all parts of the country in contradiction of the original
mandate; uniform price of maize is paid with no regard to the comparative
advantage and financial import and export parity prices. As a result, the private
sector is discouraged from providing strong commercial services, including the
establishment of an efficient agricultural commodity exchange to reduce
marketing risks on price as well as demand and supply. FRA is also criticised for
accumulating stocks without well-defined programmes to contribute to the
reduction of food insecurity among the most vulnerable people such as school
children, poor expecting mothers, and poor old people; and similarly, to
contribute to the promotion of value addition as a way of increasing the demand
for staple foods.

1.4 Institutional Capacity of Public and Private Sector

The organisational setup for innovation, research and extension includes public
institutions that mainly depend on government funding, private companies, seed
companies, large farms, out-grower schemes, and trusts that are mainly funded
through donor grants and small government allocations. Over the years, publicly
funded research has been adversely affected by inadequate funding, poor
coordination, limited number of high level scientists (PhD and MSc), and lack of
sociologists and agricultural economists. As a result, very little research and
development is being undertaken.

Even though the government has many extension workers, many farmers
continue to use crop production practices that lead to soil degradation e.g.
9
unsustainable land preparation, continuous mono-cropping, shifting cultivation
practices that result in approximately 2.4% deforestation per year, and using late
fires to clear land. Many extension workers have limited exposure and access to
new technologies meant to increase production, storage services and facilities
meant to reduce post-harvest losses, skills to prevent and control of major
diseases and pests, and knowledge of agricultural markets. Even when
extension workers have the required knowledge and skills, they are often
constrained by inadequate funding.

The private sector players also have inadequate knowledge and skills to enable
them identify opportunities and to develop and implement efficient agribusiness
operations. Skills are particularly inadequate in the identification of viable
markets and processing industries. It is therefore not possible to meet the
requirements of the market and the emerging processing industries have to
depend on expensive expatriates.

1.5 Summary of the Key Issues

Zambia has in general liberalised the economy and the emerging stable
macroeconomic environment is attracting significant private sector investment,
resulting in GDP growth rates greater than 6% per annum. However, the
performance of the agriculture sector has been below expectation in that:
a) The agriculture sector reform programme has not yet been fully and
consistently implemented and as a result, private sector investment and
sector growth rates are relatively low. Hence there is need to ensure that
complementary sector policies are implemented and the legal environment is
improved to attract significant private sector investment.
b) Poor rural roads and infrastructure result in high cost of transportation of
inputs and products and therefore reduce the net incomes and discourage
farmers.
c) Improved sector coordination through creation of viable and effective
partnerships among GRZ, private sector, NGOs, community-based
organisations, and donors increases the pool of available resources for
agriculture development.
d) Inefficient, inadequate and expensive credit is constraining agriculture sector
growth, as farmers cannot obtain appropriate inputs, machinery and
equipment to increase production.
e) Zambia needs to quickly strengthen research and extension services to
enhance productivity and competitiveness to enable her to take advantage of
the huge opportunities that are emerging in national, regional and
international agriculture markets.

10
f) Globalisation and the eventual elimination of subsidies imply that there is
urgent need to improve the productivity of small scale farmers and integrate
them into the production and supply chains.

In general, the poor performance of the agriculture sector is due to: (i) low
agricultural productivity among small scale farmers; (ii) inefficient input and
output agricultural markets; (iii) decreasing rate of growth of agricultural exports;
(iv) poor small scale farmer access to productive agricultural resources and
services to increase production; and (v) weak public and private sector capacity
to facilitate planning, resource mobilisation, implementation, monitoring and
evaluation of agricultural policy and regulatory provisions. The main issues
facing the agriculture sector are summarised in Box 1.

11
Box 1: Summary of the Key Issues Affecting Performance of the Agriculture Sector
Low agricultural productivity
 Inadequate access to appropriate extension messages on sustainable crop production
 Inadequate access to appropriate agricultural inputs, including fertilizer, seed, herbicides, animal and
appropriate mechanical power and equipment
 Reduced availability of labour due to prevalence of HIV/AIDS prevents timely completion of key farm
tasks
 Lack of affordable and accessible agricultural financial services for farmers, especially for small scale
farmers without land title deeds to provide the required collateral
 Low investment in irrigation encourages dependence on uncertain rainfall, resulting in frequent
variations in yield.
 Inadequate public and private sector research and extension services constrain development of
appropriate technologies and delivery of extension messages to increase production

Inefficient input and output agricultural markets:


 Poor rural market infrastructure increases the cost of providing agricultural services, especially in
outlying areas
 Inadequate, or lack of, market information, including ICT, to enhance agricultural trade and
communication
 Weak backward and forward linkages between agriculture and other sectors, i.e., low value addition
 Bias towards maize has weakened the diversification drive
 Government distortions in the fertilizer and maize markets through FISP and FRA, respectively,
discourage private sector investment
 Weak marketing institutions serving small scale farmers have failed to adequately organise farmers to
pool their procurement of inputs and marketing of products to reduce per unit cost
 Inadequate utilisation of regional and international markets to enable the country to fully develop the
agricultural sector, especially in view of rising demand for staple foods and oil seeds in the regional
markets
 Low competitiveness of agricultural products as a way of holding on to and/or expanding international
market shares at the expiry of some preferential trade agreements and general trade liberalisation

Decreasing growth rate of agricultural exports:


 Inadequate utilisation of regional and international markets to enable the country to fully develop the
agricultural sector, especially in view of rising demand for staple foods and oil seeds in the regional
markets.
 Predominance of primary products is a constraint as relatively low value products cannot be transported
over long distances
 Inadequate capacity to implement appropriate phytosanitary services to meet international market
requirements.

Poor small scale farmer access to productive agricultural resources and services:
 Inadequate access to purchased inputs due to low purchasing power
 Crop production is largely rain-fed and is vulnerable to weather-related fluctuations leading to frequent
crop failure and food insecurity.
 Low utilisation of irrigation in crop production.
 Bias towards maize and neglect of other crops like fruits and vegetable and legumes to enrich the diet
and the soil nutrients.
 Small scale of operation due to reliance on outdated equipment and unsustainable land preparation
practices.
 Low number of small scale farmers accessing credit due to lack of title deeds to land.
 FRA uniform pricing of maize adversely affects the production and marketing of other crops with
relatively higher margins.

Weak public and private sector capacity to facilitate creation of the enabling environment, planning,
resource mobilization, implementation:
 The agricultural sector reform programme has not yet been fully and consistently implemented and
therefore, adversely affects profitability and investments
 Inadequate legal and regulatory framework regarding market conduct, contracts, ownership rules and
property rights, and grades and standards, etc, discourage private sector investment
 Inadequate government budget allocations and donor support to public investment in key public goods,
such as research, extension and infrastructure has adversely affected productivity and competitiveness.

12
 Poor working relationship with cooperating partners has reduced the pool of available resources
 Most of the agriculture budget is biased to FISP and FRA to support maize production and has
weakened diversification
 Weak institutional capacity and reluctance to work with the private sector/NGOs as effective partners in
delivering services
 Government and special interest groups do not have adequate data and information to enable them to
make informed decisions on subsidies and measures to protect them from outside competition
 Inadequate integration of gender issues at all levels of agriculture development constrains full
participation
 High level of HIV/AIDS among some of the key players in the agricultural sector constrains the
availability of required labour at various levels

13
PART II: REVISED NATIONAL AGRICULTURE POLICY 2012-
2030

2. REVISED NATIONAL AGRICULTURE POLICY 2012 - 2030

In line with the implementation period for the national Vision 2030, the revised
NAP 2012-2030 shall be implemented from 2012 to 2030. Over this period, the
agricultural sector will strive to make maximum contribution to the macro targets
that have been specified in the national vision.

2.1 Vision, Mission, Core Values and Goals

According to the Ministry of Finance and National Planning (2006), the Zambian
people’s economic development vision is to become:

“A Prosperous middle income nation by 2030”

In order to be among the prosperous countries, Zambia needs to increase the


Gross National Income (GNI) per capita to more than US$3,946.1 To attain this
vision, Zambia has set the following socio-economic targets:
 to attain and sustain annual real growth of 6% (2006-2010), 8% (2012-
2015), 9% (2016-2020), and 10% between 2021 and 2030;
 to attain and maintain a moderate inflation rate of 5%;
 to reduce national poverty head count to less than 20% of the population;
 to reduce income inequalities measured by a Gini coefficient of less than
40;
 to provide secure access to safe portable water sources and improved
sanitation facilities to 100% of the population in both urban and rural
areas;
 to attain education for all; and,
 to provide equitable access to quality health care to all by 2030.

Vision of the Agriculture Sector:

“A Competitive and diversified agricultural sector


driven by equitable and sustainable agricultural
development”

Mission of the Agriculture Sector:

1 Lower middle income countries category is from US$ 999 to US$3,946. Since Zambia wants to be prosperous, it was assumed
that the appropriate target category is the upper middle income (more than $3,946). In Africa, only a small number of countries
have already attained the upper middle income status: Algeria, Seychelles, Botswana, Gabon, Libya, Mauritius, South Africa, and
Tunisia.
14
“To facilitate the development of a competitive,
diversified, equitable and sustainable agriculture
sector”

Core Values of the Agriculture Sector:


1) Equitable development of the agriculture sector to reduce food insecurity
and poverty;
2) Stable and consistent interpretation and implementation of the agricultural
policies, decisions and regulations;
3) Creation of economically sound agribusiness and public services
opportunities;
4) High ethical public sector and agribusiness standards;
5) Promotion of production to meet the changing needs and desires of
domestic and international markets;
6) Sustainable utilisation of the natural resources and the environment;
7) Efficient delivery of agricultural services.

Goals of the Agriculture Sector:


(i) To increase the annual growth rate of the real crop GDP;
(ii) To increase the value and growth rate of crop exports;
(iii) To contribute to reduction of poverty and food insecurity.

2.2 National Agriculture Policy Objectives 2012-2030

The objectives of NAP 2012–2030 are to:

(i) Promote sustainable increase in agricultural productivity of major crops


with comparative advantage;

(ii) Continuously improve agricultural input and product markets so as to


reduce marketing costs and increase profitability and competitiveness of
agribusiness;

(iii) Increase agricultural exports as a way of fully utilising the preferential


markets (regional and international) and increase contribution to foreign
exchange earnings;

(iv) Improve access to productive resources and services for small scale
farmers, especially women and young farmers.

(v) Continuously strengthen public and private sector institutional capabilities


to improve agricultural policy implementation, resource mobilisation,
agriculture research, technology dissemination, and implementation of
regulatory services.

The key issues and selected examples of the action areas are discussed in the
following subsections.
15
2.2.1 Promote Sustainable Increase in Crop Productivity

Sustainable increase in productivity shall be obtained through:


 Promoting environmentally friendly farming systems such as conservation
farming, aforestation, and the use of green manure and lime;
 Encouraging farmers to use relatively cheaper sources of soil nutrients,
including fertilizer blends, inorganic fertilizers, and liquid fertilizers as a
way of reducing the cost of production and encouraging optimal
application of fertilizer;
 Strengthening capacity building for small scale farmers on the appropriate
crop husbandry practices to minimise the costs, increase production and
reduce post-harvest losses;
 Strengthening the capacity of farmer organisations, including cooperatives,
to provide appropriate agricultural services to their members, such as
pooling produce to generate adequate volumes needed by processors and
exporters;
 Working with the Ministry of Lands to increase the number of farmers with
title deeds as an incentive for them to adopt sustainable land management
practices and enhance the collateral value to enable them to access
credit;
 Promoting adoption of efficient use of available water resources for
irrigation in areas where it is economically viable;
 Promoting expansion of production of oil seed crops (soybean, sunflower,
groundnuts) in rotation with food grains as a way to reduce fertilizer costs
on the one hand and increase farm yield, incomes and consumption of
protein rich food crops on the other;
 Promoting production of fruits and vegetables as a way of encouraging
consumption of balanced diet, increasing incomes and diversifying income
sources.

2.2.2 Improving Efficiency of Agricultural Input and Product Markets

Agricultural input and product markets shall be improved through:


 Strengthening capacity of agriculture stakeholders to enable them to
effectively engage the Ministry of Works and Supply and MoFNP to
improve rural roads in order to reduce the cost of providing agricultural
services, especially in settlement schemes and areas with comparative
advantage and significant production growth rates;
 Improving rural storage and strengthening capacity of small scale farmers
to reduce post-harvest losses;
 Strengthening the capacity of farmer groups, including cooperatives, to
enable them provide efficient services in production, marketing and
processing to their members;
 Strengthening market information, including ICT(Information and
Communication Technology), to enable the market to function efficiently;

16
 Promoting agro-processing and value addition for major food and
industrial crops with consistent surplus as a means of expanding market
opportunities and increasing incomes of farmers;
 Encouraging decentralised production and marketing of alternative
sources of soil nutrients, such as fertilizer blends, liquid fertilizer and
inorganic fertilizer.

2.2.3 Increasing Agricultural Exports

Sustainable increase in agricultural exports shall be achieved through:


 Strengthening capacity of farmer groups to enable them to continue to
meet preferential market requirements, such as price, quantity and quality
needs of the market;
 Enhancing the capacity of small scale farmers to understand operations of
contract farming and the benefits of selling at a relatively lower price to
large and stable markets;
 Strengthening capacity of agriculture stakeholders to lobby for increased
access to preferential markets;
 Strengthening capacity of agriculture stakeholders to lobby Ministry of
Finance and National Planning and preferential markets as a way to
improved incentives and enhance commercial viability of export crops;
 Sustainably increasing productivity of crops with comparative advantage
as a way of utilising regional markets (COMESA and SADC), especially in
view of rising demand for staple food and oil seed crops in the regional
markets;
 Broadening the diversification drive to other crops and product lines,
especially those products with rising demand on domestic and
international markets (US, EU, China, India and other markets), including
niche products (tropical fruits and organic products), as a way of providing
profitable alternatives to farmers engaged in production of products with
volatile markets, such as maize, and declining markets due to health
issues (such as tobacco);
 Continuous monitoring of the activities of trading partners to prevent unfair
practices, e.g. non tariff barriers.

2.2.4 Improve access to productive resources and services for small scale
farmers in outlying areas to enable them to increase crop production
and incomes and reduce food insecurity.

Food insecurity and poverty among poor small scale farmers shall be reduced
through:
 Promoting environmentally friendly farming systems such as conservation
farming, aforestation, and the use of organic manure to ensure long-term
productivity and viability;
 Promoting increased use of relatively cheaper sources of soil nutrients,
including organic fertilizers, fertilizer blends and liquid fertilizers as a way

17
to reduce production costs and make staple food crops competitive on
local and international markets;
 Promoting production and consumption of crops that enrich the soil
(soybean, groundnuts) in rotation with food grains as a way to reduce
fertilizer costs and increase yield and farm incomes, as well as
consumption of protein rich food crops;
 Promoting production and consumption of fruits and vegetables to
enhance the diets and diversify income sources;
 Promoting appropriate farm mechanisation hire services for small scale
farmers who do not have access to machinery and equipment as way to
increase cropped area and overcome labour constraints arising from
HIV/AIDS;
 Increasing the area under irrigation as a way of increasing yields,
promoting intensification and reducing rainfall-related production
variations;
 Working with the Ministry of Lands to increase the number of farmers with
title deeds as an incentive to adopt sustainable land management
practices and enhance the collateral value for accessing credit;
 Strengthening capacity of farmer groups, including cooperatives, to enable
their members to produce adequate volumes for efficient marketing;
 Facilitating access to affordable loans to farmer associations and groups;
 Reforming the operations of FISP and FRA to minimise market distortions
and sharpen targeting as a way of enabling Zambian products to compete
in domestic and the regional markets.

18
2.2.5 Strengthen Public and Private Sector Institutional Capabilities

Public and private sector institutional capabilities shall be achieved through:


 Strengthening interpretation, implementation and monitoring of agricultural
policies and regulatory provisions so as to enhance the investment
climate;
 Strengthening early warning information and crop forecasting data and
analysis to enhance emergency preparedness and management of
strategic food reserves;
 Strengthening the legal and regulatory framework as a way to guide both
private and public sector activities;
 Increasing and realigning of the agriculture budget based on short and
long-term priorities emanating from the joint stakeholder planning
processes;
 Strengthening the working relationship with agriculture cooperating
partners, NGOs, private sector and other stakeholders so as to increase
their support to the sector;
 Strengthening prevention and management of HIV/AIDS in the agriculture
sector;
 Strengthening integration of gender issues at all levels of agricultural
development in line with national, regional and international agreements;
 Working with MoFNP in developing alternative public-private sector credit
delivery channels for affordable agricultural credit, especially for small
scale farmers;
 Strengthening institutional capacity to provide appropriate research,
extension services and phytosanitary regulations for major crops as a way
of increasing productivity and competitiveness and reducing weather-
related risks;
 Facilitating continuous review of the regulatory framework for research
and adaptation of potential technologies, including biotechnology, to
enable the country to utilise the best technologies to compete;
 Subcontracting the private sector/NGOs to assist in providing some of the
research, extension, and regulatory services;
 Strengthening farmer groups, including cooperatives, so that they can
assist in the transfer of new technologies and reduction of the production
and marketing costs.

19
3. IMPLEMENTATION FRAMEWORK OF THE NAP 2012-2030

3.1 Participatory Implementation

The overriding objective of NAP 2012-2030 is to accelerate reduction of food


insecurity and poverty. It is important to note that no one institution has the
capacity to implement the proposed action areas and therefore strong
partnerships with agribusiness (farming communities, input suppliers, traders,
producers, and financial institutions), the Civil Society Organisations (CSOs) and
the development partners (Donors, SADC, COMESA and CAADP) are needed.
Each partner is expected to integrate the implications of the revised NAP 2012-
2030 objectives in their strategies and work plans.

3.2 Commitments

The effectiveness in reduction of food insecurity and poverty depends on the


level of commitment of the various stakeholders. Zambia CAADP-Compact
consultations obtained very clear commitments from the various agriculture
stakeholders. Since the Government has endorsed the recommendations for
implementation of the CAADP compact, it will also be the basis for
implementation of NAP 2010-2030 agriculture vision and objectives.

3.2.1 The Government of Zambia

The Government shall ensure that vulnerable populations have the opportunity to
contribute to and benefit from agricultural growth as the best way of achieving
sustainable food security and to reduce the vulnerability of households to
economic and climatic shocks that often erode assets, coping mechanisms, and
deepen poverty, hunger, and malnutrition.

The Government recognises the roles of the various agriculture stakeholders and
therefore NAP 2012-2030 shall be implemented in partnership with other
stakeholders. Key stakeholder representatives shall be involved in developing
five-year strategic plans and joint work plans, coordinating implementation,
monitoring and evaluation of the emerging impacts.

The Government is also committed to improving the quality of national agriculture


budget expenditures and harmonisation of external financing and technical
assistance to boost production and productivity in line with some of the
recommendations in the Poverty Reduction Budget Support (PRBS), the
Performance Assessment Framework (PAF) and the National Aid Policy. In this
regard, the Ministry of Finance and National Planning announced on January 18,
2011, that Government will increase and sustain agriculture budget to at least
10% of the national budget in line with 2003 AU-Maputo Declaration of the Heads
of State and Government.

20
3.2.2 Cooperating Partners’ Commitments

The Cooperating Partners have reconfirmed their commitment to the Aid Policy
and Joint Assistance Strategy for Zambia (JASZ) and concede that achieving the
MDGs and meeting Zambia’s Vision 2030 requires increases in the volume and
quality of development assistance. Therefore, development partners shall align
and scale up assistance to the sector to fund the priority programmes and
projects emanating from the agriculture sector’s five-year strategic plans and the
annual work plans, as well as CAADP priority investment programmes. In line
with the National Aid Policy, the development partners shall provide indications of
future aid to the sector based on five-year sector development plans,
programmes and projects.

3.2.3 African Union and Regional Partners’ Commitments under the


Maputo Declaration

The African Union through NEPAD (New Economic Plan for African
Development), SADC, COMESA and the other regional partners are committed,
through the Maputo Declaration, to support Zambia in defining priority
programmes that will allow the country to meet the agriculture sector objectives.
In this regard, some of the recommendations emanating from Zambia CAADP
Compact shall be included in the comprehensive sector strategy and annual work
plans. It is expected that the African Union, COMESA, SADC and other regional
partners will support Zambia in its efforts to mobilise financial and technical
support aimed at identifying the priority areas, preparing bankable projects,
mobilising funding and implementing the projects.

3.2.4 Commitments of the Private Sector and Civil Society

The private sector - which includes producers, traders, processors, input


suppliers and financial institutions - and the civil society are committed to
partnering with the Government and People of Zambia in establishing profitable
enterprises and providing services that will have measurable impact on efforts to
increase economic growth and reduce poverty levels in the country. These actors
will ensure increased participation and accountability of their constituents in the
implementation process.

3.3 Coordination, Oversight and Implementation Capacities

The overall coordination and oversight of the implementation of the revised NAP
2012-2030 will be provided by the Agricultural Sector Advisory Group (AgSAG)
composed of all key stakeholders in the agricultural sector. As one of the major
stakeholders, MACO is the Secretariat to the AgSAG. In order to ensure
effectiveness and efficiency of the AgSAG and the Secretariat, the Government
is committed to implementing some of the recommendations of the Performance
Enhancement Programme (PEP) for the period 2011-2013. This will entail
appropriate capacity building for the key stakeholders.

21
With regard to implementation modalities, the Government will drive the
development of the agricultural sector by partnering with the private sector, civil
society and farmer organisations - including small, medium and large scale
farmers. These partners shall be actively involved in the enhancement of:
(i) monitoring and evaluation;
(ii) advocacy on behalf of their constituency;
(iii) capacity building for farmer organisations and individuals;
(iv) promotion of sustainable agricultural practices;
(v) farmer training and extension services;
(vi) storage capacity;
(vii) access to inputs;
(viii) efficient marketing of outputs;
(ix) increasing exports;
(x) financial services;
(xi) value addition; and
(xii) actual implementation and management of programme components.

In order to strengthen linkages between industry, research and academia or


universities, demand-driven research and human capacity development shall be
supported. It is recognised that MACO and private sector capacity shall be
increased if there is increased utilisation of the human resource capacity
available through research institutions and universities in Zambia and networking
with appropriate international institutions.

The Government shall focus on creation of an attractive policy environment to


stimulate the growth of the agricultural sector as well as enhance private sector
participation and resource mobilisation. The major functions shall include:
 coordination of strategic planning;
 oversight;
 policy formulation;
 review and enforcement of legislation;
 regulation and inspection;
 provision of basic agricultural and rural infrastructure;
 financing of the control of pests and diseases of national economic
importance;
 farmer training and extension; and
 agriculture research, sector coordination and overall monitoring and
evaluation.

3.4 Legal framework

The agricultural sector operates under a number of legislation some of which is


outdated. In the recent past, steps have been taken to repeal, amend or to come
up with new legislation altogether. It is important to put in place legislation that is
in line with current economic policy trends and that will stimulate sector

22
investment and growth. Table xx below shows current legislation under the
Ministry.

Tablexx: List of Legislation under the Ministry of Agriculture and Co-


operatives

SER. NO TITLE CHAPTER YEAR REMARKS


1. Coffee Act Cap. 228 No.13 of 1994
2. Co-operatives Societies Cap.397 No.20 of 1998 Review of Act is
Act underway
3. Cotton Act Cap.227 No.21 of 2005 Being reviewed
4. Food Reserve Act Cap.225 No. of 2005
5. Plant Pests and Cap.233 No. 13 of 1994
Diseases Act
6. Plant Variety and Cap. 236 No. 21 of 1995
Seeds Act
7. Tobacco Act Cap. 237 No. 13 of 1994
8. Tobacco Levy Act Cap. 238 No. 13 of 1994
9. Plant Breeders' Rights No. 18 of 2007
Act
10. Fertilizer and Feeds Act Cap. 226 No. 51 of 1966 and The Act is being
No. 13 of 1994 considered for
splitting
11. Noxious Weeds Act Cap. 231 No. 13 of 1994
12. Agricultural Credits Act Cap. 224 No. 23 of 1995 Amended in 2010

13. Agricultural Marketing Awaiting approval


Bill
14. Agricultural Lands Act Since separation of

23
Ministries of Lands
and Agriculture, the
Act has been
dormant. It needs to
be amended to take
care of agricultural
land use planning
and management,
including farm blocks.
15. Agricultural Statistics Chapter 229 No. 13 of 1994 Xxxxxx
Act
16. Agricultural Products Chapter 232 No. 13 of 1994
Levy Act
17. Control of Goods Act The Act falls under
Ministry of
Commerce Trade
and Industry but
affects the Ministry of
Agriculture and Co-
operatives in as far
as the schedule of
controlled goods is
concerned.
18. The Financial Services The Act falls under
Act the Ministry of
Finance and National
Planning but affects
the agricultural
sector.

3.5 Mobilisation of Funding

In order to realize the objectives and to implement the National Agricultural Policy,
there will be need to mobilize funding by government, cooperating partners, non-
state actors and the private sector from both domestic and external sources.
Government and other partners will make their funding commitments to well
articulated, detailed and prioritised investment programmes based on five-year
strategic plans including the Zambia CAADP framework.

Private sector contribution may come from equity, commercial bank loans,
financing institutions facilitated by government to increase direct investment in
the sector, and outgrower schemes. It is hoped that commercial banks shall
overcome their administrative deficiencies to increase agriculture credit at
affordable terms. However, the Government shall in the interim work with
interested private sector and NGOs to facilitate development of a sustainable
institution to provide credit on affordable terms to farmers.

24

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