FAO/GOVERNMENT COOPERATIVE PROGRAMME

ZAMBIA

A report prepared for the
Fishculture Development Project

based on the work of

R. Fulconis
Consultant

This report was prepared during the course of the project identified on the title page. The conclusions and recommendations given in the report are those considered appropriate at the time of its preparation. They may be modified in the light of futher knowledge gained at subsequent stages of the project.

The designations employed and the presentation of the material in this document do not imply the expression of any opinion whatsoever on the part of the United Nations or the Food and Agriculture Organization of the United Nations concerning the legal or constitutional status of any country, territory or sea area, or concerning the delimitation of frontiers.

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1987

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This electronic document has been scanned using optical character recognition (OCR) software. FAO declines all responsibility for any discrepancies that may exist between the present document and its original printed version.

TABLE OF CONTENTS

1. INTRODUCTION AND TERMS OF REFERENCE

2. THE AGRICULTURAL CREDIT SITUATION IN ZAMBIA

2.1 General

2.2 Public Institutions

2.2.1 The Agricultural Finance Company (AFC)

2.2.2 Zambia Agriculture Development Bank (ZADB)

2.2.3 The Development Bank of Zambia (DBZ)

2.3 The Cooperative Sector

2.4 The Commercial Banks

2.5 Credit Currently Available for Fish-Farming

2.6 The Impact of Recently Adopted Government Policies on Agricultural Credit

3. ECONOMIC VIABILITY OF THE MODEL “ZIBA” FISH-FARM

3.1 Description of the “Ziba” Unit

3.2 Integrated Fish-farming

3.3 Credit Repayment Capacity

3.4 Credit Terms

3.5 Guarantees and Fish-farmer's Contribution

3.6 Phasing of Loan Disbursement

4. DESIGN OF THE CREDIT SCHEME

4.1 Preliminary Investigation

4.2 Basic Options for Operating the Credit Scheme

4.3 Marketing of the Fish to be Produced

4.4 Scope of the Scheme

5. PROPOSED AGREEMENT BETWEEN FAO AND THE LENDING INSTITUTIONS

5.1 Respective Functions

5.2 Mutual Obligations of the Parties

5.3 Criteria for Eligibility

5.4 Formal Application Procedure

5.5 Rules Concerning Disbursements

6. RATIONALE FOR THE FINAL ARRANGEMENT PROPOSED

7. PHASING OF THE CREDIT SCHEME OPERATION

8. ALLOWANCE FOR FUTURE ADJUSTMENTS AND CONCLUSION

Appendix 1: List of Persons Visited/Interviewed

Appendix 2: Farm Sizes in Zambia

Appendix 3: Interest Rate Schedule

Appendix 4: Cash Flow Projections

Appendix 5: Pro Forma Loan Application

Appendix 6: Documentation Consulted

ABBREVIATIONS/ACRONYMS USED

CURRENCY EQUIVALENTS

The national currency is the Zambian Kwacha (K)
$US 1.00 = k 7.8 (May 1987)