Zambia adjusts budget to avert food insecurity

Zambia will review its US$7 billion (about R131 billion) budget for the fiscal year to address food insecurities largely brought on by the drought, which has reversed projected food production during the 2023/24 farming season, said Finance Minister Situmbeko Musokotwane.

As many as six of the country’s 10 provinces have been devastated by dry spells caused by drought, leaving devastation of various crops, chiefly maize, which is Zambia’s staple food. This has fuelled concerns that the Southern African state may reduce its production capacity to half of the 3,2 million tons harvested last season.

The minister said Zambia had severely been hit by drought, which has caused dry spells in more than half of the country, leaving the majority of the three million smallholder farmers with financial losses as many lacked crop insurance. In a ministerial statement, Musokotwane pledged to amend the budget to provide for additional resources to curb hunger.

“We’ll definitely adjust national budget to ensure food security because it is evidently clear that this season is the worst in our living memory, especially that most of citizens in different provinces are facing their worst food insecurity,” he said.

President Hakainde Hichilema said he was saddened by the anticipated low maize productivity and urged Treasury to apply contingency measures to ensure food security after the dry spells.

He directed the country’s Food Reserve Agency to purchase all the maize that remained uncollected in the countryside to ensure there was enough food for all citizens.

Hichilema was apprehensive that the drought could affect hydro power generation as a result of power outages due to the low water levels in various reservoirs and dams. Ministry of Agriculture director Chizumba Shepande allayed fears of severe food insecurity, citing carryover stocks from previous seasons to complement what could be salvaged from this season’s harvest.

Zambia’s 2024 national budget, estimated at ZMW177 billion (about R131 billion), seeks to fine-tune the economic policy laid out in the previous two budgets, which focused on policies that support private-sector growth, improve efficiency in revenue collection and optimise expenditure.

Musokotwane said he foresaw this year’s budget as one that could create newfound stability through creation of conditions for economic expansion, and private as well as public sector job creation.

Zambia seeks to sustain its reputation as the regional bread basket through increasing output this season and providing regional neighbours with a supply of its staple food. –