Indo Zambia Bank unveils US$10M dairy financing schemes 

ZAMBIA – Indo Zambia Bank has launched two innovative financing schemes worth US$10 million to strengthen Zambia’s dairy value chain, aiming to empower smallholder farmers and enhance food security. 

The initiative, announced in partnership with the Dairy Association of Zambia, seeks to provide accessible loans to dairy farmers and cooperatives, fostering growth in the agricultural sector.

The bank signed a Memorandum of Understanding with the Dairy Association of Zambia to facilitate the provision of tailored loan facilities to its members. 

This strategic partnership is designed to address the financial barriers faced by smallholder dairy farmers, enabling them to expand production and improve milk quality. 

The financing schemes are expected to support over 6,500 smallholder dairy producers, contributing to job creation and poverty reduction in rural areas.

“Through this collaboration, we aim to empower dairy farmers with the financial tools they need to thrive,” said Kowdichar Shashidhar, Managing Director of Indo Zambia Bank. 

“Our goal is to drive sustainable growth in the dairy sector, which is vital for Zambia’s economy.”

The dairy sector plays a critical role in Zambia, with an estimated 600 million liters of milk produced annually, though only 70 million liters are processed formally, according to the Dairy Association of Zambia. 

The new financing schemes will provide loans for purchasing improved dairy cattle, upgrading farm equipment, and enhancing milk collection centers. 

These efforts are expected to increase the availability of dairy products and reduce reliance on imported milk powder.

A report by the Zambia Ministry of Fisheries and Livestock highlights the importance of smallholder farmers in the dairy value chain, noting their contribution to rural development. 

The financing schemes will also support the establishment of Practical Dairy Learning Farms and a Dairy Innovation Centre to promote best practices in dairy farming.

“We are excited about this partnership, as it will transform the lives of our farmers,” said a representative from the Dairy Association of Zambia. 

“Access to affordable financing will enable our members to scale up operations and meet growing market demands.”

Indo Zambia Bank’s initiative aligns with the Zambian government’s vision to boost agricultural productivity and diversify the economy. 

President Hakainde Hichilema has previously emphasized the need to support local milk production to reduce imports. 

The bank’s US$10 million investment is expected to enhance the resilience of the dairy sector, improve incomes for smallholder farmers, and contribute to Zambia’s goal of becoming a regional food basket.

Reported by Zambia’s agricultural authorities, the dairy sector employs a significant portion of the rural population, making such financial interventions crucial for economic growth. 

The schemes are set to roll out immediately, with eligible farmers encouraged to apply through the Dairy Association of Zambia.

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