MS Zambia Newsletter August 2008

Fertilizer support is not enough

The government of Zambia has increased its budgetary support to fertilizers in August, but rising food prices and environmental and climate changes might negate the efforts to significantly impact the living conditions of the poor.

By Ivy Mutwale – Program Officer, Information Management and Networking - CSPR

24. August 2008

The Government of Zambia in August announced the budgetary increase in the allocation to the Fertilizer Support Program in the light of the increased cost of fertilizers.
This announcement to increase the allocation by K307billion from K185bn to K492bn cheered the Civil Society for Poverty Reduction (CSPR) as it will improve rural livelihoods which mostly depend on small scale farming. The current budget has now increased the number of beneficiaries from 125, 000 farmers in 2007 to 200, 000 in the next season. This will help to improve yields.

CSPR’s Executive Director, Mrs. Mulima Akapelwa said this increase would go a long way towards improving national food security as it showed commitment to achieving the goals of both the national and international plans.
“The government’s gesture is a positive indication of their commitment to successful implementation of the strategies set out in the Fifth National Development Plan at national Level and the Millennium Development Goals (MDGs) to halve the number of people living in extreme hunger, at international level. This is especially so in the light of the food prices going up at alarming rates internally,” she said.

A political Analyst, Mr. Jack Jones Zulu observed during a CSPR Advocacy Meeting that food prices have risen by 45% since end of 2006 reflecting earlier price increases in other commodities. Many prices reached record highs including those for crude oil, base metals, copper, soybeans, corn and wheat. The surge in prices was led by some major food crops (corn, wheat, and edible oils) but has now spread to other foods including rice.

 

According to the 2007/2008 Human Development Report by UNDP, the Agriculture Sector accounts for over one third of export earnings in around 50 developing countries and half of employment. Every $1 generated in agriculture in Sub-Saharan Africa is estimated to generate up to $3 in non-agricultural sector.

However, environment and climate change poses significant risk to food production and livelihoods of the poor in this region. This will pose a major setback on efforts to achieve the MDGs. The Human Development report predicts that yields from rain fed agriculture could reduce by up to 50% between 2000 and 2020. Increase in temperature (2.6C) and 4% reduction in rainfall by 2060 will result in reduction in revenue of 25% per hectors.

In the light of this, the Southern Africa Development Community Council of NGOs recommended to the regional Poverty Conference held in April 2008 in Mauritius that SADC member states should urgently adhere to the commitment of 10% budgetary allocation to agriculture.

The SADC-CNGO further recommended that active measures be taken to support SADC countries to diversify food production, especially in the area of small grains which are draught resistant. In addition, measures should be taken to significantly improve infrastructure such as roads, dams, irrigation facilities and research institutions to assist in agricultural production, distribution and marketing.
CSPR raised concern on the low allocation to this particular sector during the post budget debate in view of the increased price of fertilizer.