INVEST / ALLOCATE MORE RESOURCES IN THE AGRICULTURE AND ENERGY SECTORS

By Daily News Reporter

Zambia Institute for Policy and Research (ZIPAR) has projected  the 2025 National Budget in the agriculture sector to address agricultural policy with the aspiration to make it a major driver of growth through market-based mechanisms, including the Comprehensive Agriculture Transformation Support Program (CATSP) and Sustainable Agriculture Financing Facility (SAFF), aiming at increasing productivity in agriculture. Speaking to the Media in Lusaka, ZIPAR  Interim Executive Director Zali Chikuba stated that such reforms are critical to ensure a clearer framework for evaluating government accountability in agriculture.

Mr Chikuba also stated that this will show commitment to reduce reliance on the Farmer Input Support Program (FISP) as a measure to improve productivity in the agricultural sector due to the underlying inefficiencies associated with the framework.

“ this FISP need to be maintained for the 2025 National Budget with commitments made to improve efficiency, particularly in targeting the poor and vulnerable, and in the use of electronic vouchers to streamline distribution,”Chikuba said.

Mr. Chikuba further urged the Minister of Finance to allocate resources to recruit more extension officers to support the implementation of the stated agricultural reforms. Also by scaling down of FISP allocations with resources redirected to more critical areas such as irrigation and mechanization.

And ZIPAR also expects the 2025 National Budget to increase investment in irrigation and mechanization to boost agricultural productivity and build resilience against climate challenges, particularly droughts and floods.

So far the Government has continued commitment to constructing 38 dams, supported by the K598.4 million allocated in the 2024 Budget for key farm blocks, which is expected to continue in 2025.

And Mr. Chikuba has also urged the Government under ministry of finance to allocate and invest more in the               Energy Sector, In 2023 and 2024 Zambia has not been spared of drought  across the country especially in the agriculture and energy sectors,

The 2025 National Budget is expected to fast-track the licensing of energy projects, with a focus on facilitating increased investment in renewable energy such as solar, while expanding existing thermal and hydropower projects. The government is anticipated to streamline licensing processes further to enhance efficiency and attract investment by operationalizing a one-stop shop for energy project development. Additionally, the fast-tracking of licensing and implementation of renewable energy projects is expected to include non-tax incentives for independent power producers, both local and international, to invest in Zambia’s energy sector.

 And Mr. chikuba stated that they is need to support the introduction of on-bill financing, where ZESCO and the financial sector collaborate to provide solar systems to both domestic and commercial consumers. “The cost of these systems would be recovered through electricity bills. This program is expected to reduce dependency on the national grid and lessen load-shedding, while also ensuring consumer protection through regulation of solar systems to prevent the use of counterfeits,” Mr. Chikuba stated