Gov’t Secures K5 Billion to Clear Outstanding Farmer Payments
The Government has mobilised K5 billion to settle outstanding payments owed to farmers who supplied maize to the Food Reserve Agency (FRA) during the 2025 Crop Marketing Season.
Delivering a Ministerial Statement to Parliament, Minister of Agriculture, Honourable Reuben Mtolo, MP, confirmed that a structured financial intervention has been put in place to ensure farmers receive their dues promptly.
Government, through the FRA, has finalised negotiations with commercial banks to secure a loan facility of K5 billion. The financing will bridge the current funding gap and expedite payments to more than 846,000 small-scale farmers who delivered maize to the Agency.
To date, Government has disbursed K2.08 billion towards farmer payments, with the balance expected to be cleared through the loan facility and additional revenues from ongoing FRA maize sales.
“This Government attaches great importance to the timely payment of our hardworking farmers and is doing its level best to ensure that the debt owed to farmers is cleared within reasonable time,” Honourable Mtolo told Parliament.
The Minister assured the nation that all maize procured under the FRA has been stored securely. The Agency has storage capacity of 1,105,510 metric tonnes (MT) and has partnered with the private sector to accommodate the remaining stock, bringing total maize reserves to 1,831,290 MT.
Honourable Mtolo applauded farmers for their patience and contribution to national food security. He reaffirmed that the agriculture sector remains central to Zambia’s economic transformation and rural development agenda.
