Zambia: FSP Budgetary Allocation Up

Source from:  The Times of Zambia (Ndola) 12 August 2008 08/13/2008

GOVERNMENT has raised this year's budgetary allocation under the Fertiliser Support Programme (FSP) from K185 billion to K492 billion to allow more small-scale farmers to benefit from the programme. Finance and National Planning Minister, Ng'andu Magande said during the official opening of an Indo-Zambia Bank branch in Chipata yesterday that the increase in the allocation would enable the Government to buy and distribute 80,000 tonnes of fertiliser instead of 50,000 tonnes. "The 2008 budget provision of K185 billion has been increased by K307 billion, making a total of K492 billion for the Fertiliser Support Programme," he said. According to a workout by the Ministry of Agriculture and Cooperatives, the number of small-scale farmers to benefit would increase from 125,000 in 2007 to 200,000 during the next season. Mr Magande said to make fertiliser affordable, the Government had decided to raise the subsidy from 60 per cent to 75 per cent of the price. "This means that for a 50 kilogramme bag of fertiliser currently costing K220,000, a farmer will pay only K55,000," he said. Last year, the farmers paid about K50,000 for a bag of fertiliser under the FSP. The minister appealed to cooperative managements to first consider vulnerable farmers before giving the subsidised fertiliser to others. Mr Magande said the Government would this year tighten security along the border areas to prevent the fertiliser meant for small-scale farmers from being smuggled and resold in neighbouring countries. He said in 2003, the Government introduced the FSP to provide subsidised fertiliser and seed to small-scale farmers. Mr Magande said President Mwanawasa's vision for agriculture was that of a hunger-free Zambia. He said despite some global challenges such has the escalating oil prices, Government had achieved stability in interest and exchange rates. He said Government had waged a relentless war on corruption to create a level playing filed for all business operators. The minister described Eastern Province as an important agricultural area producing large quantities of crops such as maize, tobacco and cotton. He said praised Indo-Zambia Bank for opening a branch in Chipata because the province was making a significant contribution to the national economy. The minister said the major infrastructure development would create more impetus for the border town to fight for a city status and also make Chipata a vital economic centre and create a trade link between its neighboring Malawi and Mozambique. Earlier, Indo-Zambia Board Chairperson Orlean Moyo said the bank had grown from the time it was formed some 25 years ago and today stands as one of the major players in the Zambian Banking industry. She said the total business of the bank was now in excess of K876 Billion as on 31st July this year, while the continued confidence and support of the customers saw the total deposit of the Bank raised to the level of over K671 billion, with loan and advance portfolio crossing the level of K200 billion. "The bottom line of the bank has also kept strengthening as evidenced by the fact that the bank recorded an operation profit of K35.5 billion and a net profit K23.3 billion for the financial year ended 31st Match 2008." She said Mrs Moyo said the policy of retaining a major portion of the profit in the business had resulted in increase in the bank's Shareholders' fund to K154 billion as at 31st March 2008, while the capital adequacy ratio of the bank continue to be strong at 50 per cent. She attributed the success of the bank to the very strong parentage and valuable support of both the government of Zambia and India. Mrs Moyo said the bank chose to move to Chipata in order to ensue that it participates in the economic activities and development that unfolding in the province. She said the level of infrastructural development in both Agriculture and tourism including the completion of the Chipata-Mchinji rail had encouraged the bank to open a branch in Chipata. Mrs Moyo said the bank was a vital link between Zambia and India and poses unique opportunities for the business community in Chipata to connect and forge links with their Indian counterpart and vice versa. Acting Indian High Commissioner Oscar Kartetta and other senior Government officials including some traditional rulers attended the colourful ceremony. Enditem