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1 year ago

ZAMBIA

IAPRI-Booklet

24

13 Figure 6: 2016 Budget Allocation to Ministry of Agriculture Source: Ministry of Agriculture, 2016 Though politically popular, the experience in Zambia and other countries in the region demonstrates that these subsidy programmes are typically less effective at stimulating agricultural growth than investments in research, extension, roads and other public goods. This is due to the fact that subsidies often displace private spending that would otherwise occur, and are prone to diversion and manipulation. Current rural poverty estimates show that there has been a marginal decline in rural poverty by 1.3 per cent from 77.9 per cent in 2010 to 76.6 per cent in 2015 (LCMS, 2015).This is despite heavy spending on FRA and FISP. Continued heavy spending on FISP and FRA has left few resources to invest in these well recognized drivers of agricultural growth. Zambia’s primary policy objective of achieving accelerated growth and competitiveness in the agricultural sector cannot be achieved unless adequate public resources are committed towards catalysing the desired growth.

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