Convert Agric credit window into a grant, says Kafwaya

GOVERNMENT should consider converting the Agriculture Credit Window Facility into grant scheme due to the prevailing climatic conditions as farmers are most likely to default on their loan payments, Mutotwe Kafwaya has proposed.

About six provinces, including Southern, Western, Central, Lusaka, Eastern and Copperbelt have for the past 38 days been experiencing dry weather patterns which were expected to continue for the next few weeks resulting into the withering of the crop and drying up of rivers and dams.

At the beginning of the 2023/24 farming season, the government working with some commercial banks introduced the Credit Window Facility meant for farmers who were not on the Farmer Input Support programme (FISP).

But some farmers have expressed fears that they might default their loan repayments as they are likely not expected to get desired yields and meet the required amount to repay the loans due to the dry spell.

And Mr Kafwaya said with Zambians already facing liquidity challenges, it would be difficult for the government to recoup the money from their investment on the facility and the government should come to the aid of the farmers by converting the loans into grants.

“Currently, the people have no money because there is no money in circulation, so if the poor farmers will be compellced to pay after making losses because of drought then it will be unfair to their part, what has happened is a calamity,” he said.

He said it would not be right for the government to turn into debt collectors as most peasant farmers do not have property that can be grabbed as collateral.

Mr Kafwaya said in times like this, it was prudent that Government took a step to give relief to the farmers who were already struggling.

He said farmers cannot be compelled to pay back the loans when they had not made any profit out of the loan facility they acquired.

“It will be important that Government look into this issue, they should not think that they will make a loss but they will actually help the farmers who are already facing challenges, Mr Kafwaya said.