The Zambian government has ensured that in the next five years 10 percent of the national budget will be dedicated to agriculture and rural development in order to encourage investment in the sector, Times of Zambia reported Wednesday.

Agriculture Minister Ban Kapita was quoted as saying that an irrigation development fund has been established to facilitate investment in the sector for all categories of farmers.

The bulk of the investment is expected to come from the private sector while the public sector will concentrate on developing infrastructure like roads, and creating an enabling environment.

However, he said the agriculture credit in the country is still precarious because of non repayment of loans, a situation that lead to the collapse of credit institutions like Lima Bank and Cooperation Bank.

The key to fighting hunger and poverty lay in the sustainable utilization of agricultural resources like land, labor, water, fisheries and livestock, he said.

Zambia needs to forge ahead in addressing challenges faced in the area of agricultural development in order to improve the rate of food production that is not corresponding to the population growth rate of 3.5 percent.

Source: Xinhua