P-ZM-AA0-001

Project Details
ID: P-ZM-AA0-001 Name: AGRICULTURE MARKETING PROCESSING AND INFRASTRUCTURE PROJECT Status: Completed Country: Zambia
Sector: Agriculture Approval date: 24-aoû-1992 Task Manager: AHMED Tarek Abdallah, RDGS4
Total cost: 49520000
Currency: UAC
Source(s) of financing
ADF: 9210112.8
Cofinanced: 25975271.8
Government: 11300000
Implementing Agency: GOVERNMENT OF ZAMBIA Location: EASTERN PROVINCE

Objectives

The overall objective of the project is to increase the availability of the credit and services for agricultural production. The specific project objectives are to stimulate the participation of private operators in marketing and processing, agriculrural crops, fertilizer distribution and rural transportation; rehabilitate rural roads which are essential for increased agricultural production; rehabilitate about 20,000 ha of abandoned or underutilized farms; and promote women activities including access to credit under the project.

Description

Over a five-year period the project will provide increased investment to rationalize the financing of maize and fertilizer purcahses which have substantially contributed to fiscal and monetary imbalances. The marketing systems and processing infrastructure will be improved while targetted lending will be supported until a financial system is developed to enable commercial banks become suitable instruments to provide the necessary financial support to agriculture. The project consists of the following compenents: A. Credit ; B. Rural Roads Rehabilitation and Maintenance; C. Market Development and Monitoring ; D. Project Management ; E. Technical Assistance. ADF components: A. Credit for Medium-term Loans; B. Technical Assistance to Strengthen the PIU; C. Auditing Consultancies.

Benefits

The principal benefits of the project would be efficiency gains in the provision of a range of rural services and commodities to the urban and rural populations. These efficiency gains, along with the created employment opportunities, would significantly reduce food costs, improve household food security, and increase incomes to farmers and rural enterprises. The majority of project beneficiaries would be women, who are currently key players in most project activities.

Rational

The Zambia Agricultural Marketing and Infrastructure Project (ZAMPIP) had a provision of UA 6.02 for credit, which was never implemented.These funds were transferred under ASIP-EP at the request of the Government to meet the credit requirements of programme beneficiaries. Thus ASIP-EP is being implemented concurrently with the credit component from ZAMPIP. The credit component is being managed and administered by the Zambia National Commercial Bank and Africare respectively. The project would assist the rural smallholder farmers in utilising existing and new technologies offered by the reserach and extension services.