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 An Action Plan for
Developing Agricultural Input Markets in Zambia was completed by a team
led by Dr. Balu L. Bumb, IFDC Principal Economist. The action plan
identified several constraints affecting the performance of AIMs in
Zambia. A non-conducive policy environment (created by subsidy
intervention and input distribution by the government), limited human
capital for efficient markets in rural areas, limited access to finance
due to high interest rates (more than 50% per year), stringent
collateral requirements (150%-200%), poor market information, and
ineffective enforcement of regulatory frameworks keep AIMs inefficient
and non-competitive. Restrictions on grain trade and limited knowledge
and credit available to farmers prevent input use. The action plan made
several recommendations dealing with the policy environment, human
capital, access to finance and information, and regulations to improve
the functioning and performance of markets. Measures were also suggested
to improve the demand for inputs. A 2-day national stakeholders’ workshop,
which attracted more than 100 stakeholders, was organized to validate
the action plan.
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Market & Trade Policy --->
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