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Indo Zambia Bank (IZB) has reportedly launched two targeted financing schemes aimed at boosting milk production and strengthening the dairy value chain.
The bank signed a Memorandum of Understanding (MoU) with the Dairy Association of Zambia (DAZ) during a ceremony held on Wednesday last week in Palabana, formalising the rollout of the Indo Dairy Production Finance Scheme and the Indo Dairy Development Finance Scheme.
IZB Managing Director, Brajesh Kumar Singh, outlined the details of the two schemes.
He said the Indo Dairy Production Finance Scheme was tailored for DAZ members with at least two years of experience and a minimum of two cows, tied to a reputable milk off-taker.
The scheme offered K6,000 per cow, per month, with repayments over 12 months, adjustable to inflation and input costs.
Singh hinted that the facility would cover construction, purchase of additional cows, and acquisition of transport vehicles.
The bank also promised to offer funding of up to K84,000 per unit/asset, with a repayment period of up to 36 months at a concessional interest rate.
“This initiative underscores our commitment to supporting Zambia’s agriculture sector and empowering small and medium enterprises within the dairy value chain,” Singh said.
Through the MoU, IZB would extend agriculture scheme loans to eligible DAZ members under the agreed terms and conditions.
DAZ Chief Executive Officer, Victor Ng’andu welcomed the development, stating that the partnership would help address one of the major challenges facing dairy farmers which is access to finance.
“Access to finance for our members is and has been a challenge. Most of our members are trying to improve their production, and we can only do that if we have capital,” he said.
Ng’andu noted that Zambia currently produces about 79 million litres of milk annually, and that the MoU would help boost this figure by enabling members to expand productivity.
Palabana Cooperative Chairperson Pamela Njovu, who delivered the vote of thanks, said the MoU would support the long-term sustainability of farming enterprises in the dairy sector.
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