by Maureen Odendaal
“Despite 40 million hectares of arable land, an abundance of groundwater resources, nutrient-rich soil, and low population density, Zambia’s agriculture sector has not yet reached its full potential.” World bank 2018
The economy of Zambia, has, to date, been largely dependent upon earnings from copper, which typically contributes 60-70% of the country’s foreign currency reserves. However recent slumps in the price of copper, Covid uncertainty and decreased demand for copper by China have negatively influenced the Zambian economy. The reliance on one product makes for a fragile economy.
The second largest contributor to the economy in Zambia is agricultural produce and agri-business, but this only contributes 9% of Zambia’s gross national product. Add to this the fact that only 32% of agricultural land is farmed ( despite the fact that more than 50% of the population are employed in the agricultural sector) then it becomes clear that with careful investment and good use of local knowledge, there is great potential to grow the economy of Zambia by increasing agricultural output and agri-businesses. This is especially important for a country which has shown the potential for good growth: investment in the agricultural sector can make the local economy more stable, provide employment, and increase exports and hence foreign currency reserves.
Most of the farming in Zambia is small to medium scale (up to 20ha); these farmers constitute 78% of farmed land (only 4% of farms are large-scale) with much cultivation done by hand, limited access to machinery and limited access to adequate irrigation. A recent decline in the contribution of agriculture to GDP has occurred, largely because of unreliable rainfall and the consequent effect that this has on small farmers.
However, Zambia does have good supplies of ground water, so whilst the rainfall is less reliable, if suitable irrigation were installed, agricultural output could increase for these farmers and also bring much needed income stability.
So, the scene is set for the development of a sustainable agricultural model which can improve the agricultural output of Zambia as well as provide relief from poverty, and generally improve the standard of living of a large proportion of the Zambian population.
One model worth investigating is the idea of a synergy between the large scale and small scale farmers, who currently operate in separate spheres, with small scale being largely in the cash economy whilst large scale farmers benefit from economies of scale. A cooperative enterprise between the two would enhance both operations and increase the sharing of knowledge and expertise. For example, large enterprises can help grow the infrastructure and also work with small farmers to improve their irrigation, whilst small farmers can help investors to understand local conditions. A community-centred approach which involves much needed local development (schools, clinics, good roads) as well as an improved economy and increased exports is just on the horizon for Zambia.
AGREN is developing such a model – one which combines the need for growth with the need for sustainable development with a community centred ethic. Currently foreign investors aim largely at profitability, which, whilst good for the economy, does not improve standards of living significantly country wide.
“For the effect of agriculture to be much more profound, farmers must be supported with adequate infrastructure, accessibility to markets, farming inputs, better irrigation techniques, which would address the problem of reliance on rain, all of which were inconsistent in the last decade. Additionally, governments must ensure the institutionalization of food processing industries which add more value to the national income.”1
1 JOSEPH PHIRI, KAREL MALEC, SOCRATES KRAIDO MAJUNE, SETH NANA KWAME APPIAH-KUBI, MANSOOR MAITAH, KAMIL MAITAH, ZDEŇKA GEBELTOVÁ, & KAMAL TASIU ABDULLAHI. (2020). Agriculture as a Determinant of Zambian Economic Sustainability. Sustainability. 12.
