An agriculture industry company in Mkushi district has expressed disappointment with small scale farmers in the area for failing to settle a loan scheme which was administered to them.
Agri-options General Manager Lester Shenton disclosed that the company had given out about 25 tonnes of Soya Bean seed as part of a loan package to farmers for the 2012 planting season.
Mr. Shenton complained that the loan recovery performance has been very disappointing as most farmers had failed to honour their obligations to the company.
He explained that the company had envisioned promoting crop diversification in the district through seed loan scheme but that the response from farmers has been disheartening.
Mr. Shenton disclosed this when Mkushi District Commissioner (DC) Christopher Chibuye toured the company’s factory plant today.
The Agri-option General Manager did not however state the course of action that his company would take on the defaulting farmers in its quest to recover its investment.
And the Zambia National Farmers Union (ZNFU) Central Regional Manager Joseph Phiri stated that 211 hectares of land was set as the collective total for the farmers who benefitted from Agri-Option loan scheme.
Mr. Phiri explained that the conditions for this loan deal entailed that the benefiting farmers were to grow Soya Bean, adding that their collective efforts were to culminate into 211 hectares of Soya Beans cultivation.
He expressed hope that the loan recovery performance could improve during the course of this month.
Meanwhile, Mkushi District Commissioner (DC) Christopher Chibuye reiterated his appeal to Commercial farmers to join the District Business Association (DBA).
Mr. Chibuye stated that commercial farmers were arguably the most well established private sector in the district, saying that there was need therefore for this sector to be brought on board in the quest to boost the DBA.
He said the DBA was a cardinal in the fostering development of the district, adding that Government recognized such organizations as partners in development.
Mr. Chibuye explained that there was need for commercial farmers to seriously consider this appeal as Government had consistently encouraged local participation in driving the economy of the district.
ZANIS
Zambian Politics have taught people wrongly with regard to loans in any form. Today we have people who go to borrow money with intent not to pay back. This are preditor borrowers. Its the teaching of politics of free issuing of campaign materials which has left people with this mentality. When someone borrows money there must be trust that one will pay if not recourse to guaranty of loan security must take effect. People must respect conditions of borrowing and the consequences of failure to repay. Unless money comes from Father Christmas, other wise the lender would be in trouble of loosing out. We must learn to live within our means and not to borrow for the sake of it. Not paying back loans destroys other people’s aspirations.Â
You see, that is the problem with us Zambians-We want things for free. How do you get a loan when you know you won’t pay back. God blessed us with everything, including rain and all these ignorant farmers had to do was to sow those soya seeds, and yet people fail to pay back…..
If some people wont pay back 14 billion kwacha, why shoud a poor farmer pay back a bag of soy beans?
these kinds of stories do not attract comments because we just like politics which except for politicians do not bring food on the table. As correctly pointed out by Floyd Chitalu, we have a culture of not repaying loans. this is the problem especially for government monies. the CEEC and Development Bank of Zambia are facing similar repayment problems even from well established members of our society.Â
Non-repayment of loans increases risk which leads lenders  increase their interest rates which punishes they people that repay they loans. there is need for the implementation of the credit reference bureau to shield the people that repay their loans from being unfairly disadvantaged
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