FNB Zambia Backs FRA Farmer Payments with ZMW1bn Facility
FNB Zambia has structured and closed a ZMW1 billion working capital facility for the Food Reserve Agency (FRA), enabling timely payments to farmers during the 2024 to 2025 maize marketing season.
The transaction forms part of a wider ZMW5 billion financing programme for the FRA, aimed at ensuring farmers across the country are paid without delay. The facility was arranged under a Collateral Management Agreement, with repayment secured through maize sales from the national food reserve.
The financing supports key national agricultural priorities, including strengthening food security, boosting rural economic stability and enhancing sustainability within the agriculture sector. By facilitating prompt payments, the facility is expected to stabilise cash flow for small scale farmers who depend on FRA receipts for their livelihoods and future planting cycles.
FNB Zambia Chief Executive Officer Kapumpe Chola said the transaction marked a significant milestone for the bank.
“The ZMW1 billion agreement represents the largest structured facility FNB Zambia has delivered to the public sector, demonstrating our capacity to execute large scale and complex transactions in support of national development,” Ms Chola said. “This milestone aligns with our Shared Prosperity drive and highlights our commitment to the communities we serve.”
The facility follows FNB Zambia’s earlier participation in the 2025 Crop Purchase Programme, further reinforcing the bank’s role as a strategic partner to the Government of Zambia.
In addition to financing, FNB Zambia has supported the operational side of farmer payments. Through its cash in transit services, the bank has facilitated payments in Solwezi, Kasama, Mbala and Kasempa, helping to ensure smooth and efficient disbursement to farmers in these regions.
Ms Chola said the initiative goes beyond financial support. “This facility is not just about financing; it is about supporting the farmers who anchor Zambia’s food system. Ensuring they are paid on time is critical for household welfare, national food security and the long term sustainability of the sector. We are proud to partner with the FRA and the Government in advancing this essential priority,” she said.
