$49.9 million project targets rural jobs, financial inclusion

Government says it has launched a seven-year US$49.9 million Financial Inclusion for Resilience and Innovation Project (FIRIP) aimed at expanding access to finance, strengthening climate resilience and creating more than 144,000 jobs in rural Zambia.

The project, funded in partnership with the International Fund for Agricultural Development (IFAD), is expected to directly benefit more than 370,000 people, with its wider impact projected to reach about 1.8 million rural residents.

Speaking at the inaugural FIRIP Stakeholder and Partnership Meeting in Lusaka on Wedneday at Golden Peacock, Ministry of Finance and National Planning Permanent Secretary for Economic Management and Finance, Mulele Mulele, said the initiative would support inclusive and sustainable economic growth by enabling rural households to participate more actively in the formal financial system.

His remarks were delivered by Director of Economic Management Akepelwa Emwiko.

Mulele said FIRIP would focus on improving access to financial services for poor rural households, helping them strengthen livelihoods, manage risks and build resilience against economic and climate-related shocks.

He said the project would prioritise women and young people, with women expected to account for at least 40 percent of beneficiaries and youths 50 percent.

“FIRIP will establish an Innovation and Outreach Facility to help financial institutions develop products tailored to the needs of rural smallholder farmers and micro, small and medium-sized enterprises,” Mulele said.

He said many financial institutions had traditionally been reluctant to serve rural markets due to perceived risks associated with lending to smallholder farmers and rural enterprises.

Meanwhile, IFAD Country Director, Brian Kapotwe, said transforming Zambia’s agriculture sector required more than increasing production, as farmers also needed access to appropriate financial services.

Kapotwe said financial inclusion would enable farmers to manage risks, invest in modern technologies, access markets and adopt innovative farming methods.

He added that limited access to suitable financial products had slowed the shift from traditional farming practices to mechanised agriculture, preventing many smallholder farmers from investing in equipment such as tractors and other productivity-enhancing technologies.

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