USAID/Zambia Economic Development Office - Development Credit Authority (DCA) with Madison Finance Company Limited

Speeches Shim

Solar Panels in Kabwe, Zambia
Renewable-energy technologies like solar panels support agriculture productivity and income levels for target populations.
Taylor Yess, USAID/Zambia

Despite 80 percent of Zambia’s workforce working in agriculture, the sector contributes less than 20 percent toward the Gross Domestic Product.  The DCA works to increase its contribution by promoting lending to individuals and small businesses in the agriculture sector, with a focus on warehousing and clean-energy agriculture solutions.  Improving access to productive loans creates well-paying jobs, new economic opportunities, and sustainable long-term development.

BACKGROUND

In 2015, USAID and Swedish International Cooperation Agency (SIDA) signed a seven-year agreement with Madison Finance Company Limited to facilitate access to loans for small-scale farmers.  Through the DCA facility, USAID and SIDA aim to support loans for: (1) businesses or individuals for the purchase of renewable-energy technologies (such as bio-digesters or micro-solar irrigation kits); (2) companies operating along the agriculture value chain; and (3) companies requiring capital to produce renewable-energy products.  USAID and SIDA hope to boost agriculture productivity and income levels for the target population, as the country aspires to reduce poverty and increase resilience among its citizens.

DEVELOPMENT CREDIT AUTHORITY (DCA) WITH MADISON FINANCE

  • Life of Project: September 2015 to September 2022
  • Location: National
  • Partners: Madison Finance Company Limited
  • USAID Investment (Life of Project): $8 million

ABOUT USAID’S EDEV PROGRAM

The Economic Development office’s approach to reducing poverty in Zambia is based on three pillars: agriculture, natural resources management, and access to energy.  Through the Feed the Future initiative, USAID tackles rural poverty and malnutrition with activities that address policy issues, promote access to markets and enterprise development, and facilitate private-sector investment to increase agricultural production and incomes.

Zambia’s tremendous wealth of natural resources faces increasing threats. USAID programs help to conserve Zambia’s forests and rich biodiversity by promoting sustainable natural resources management and combating wildlife trafficking.  Through the Power Africa initiative, USAID seeks to increase the generation of, and access to, clean energy sources, particularly in rural and off-grid spaces.

JOURNEY TO SELF-RELIANCE

USAID believes every person, every community, and every country wants to be empowered to lead their own future. We support self-reliance by walking alongside our friends on their development journey, as evolving but enduring partners.  As partners on this journey, we are empowering host country governments and our partners to achieve locally-sustained results, helping countries mobilize public and private revenues, strengthening local capacities, and accelerating enterprise-driven development.  This approach fosters stable, resilient, and prosperous countries that are more self-reliant, and prioritizes enduring partnerships.

ABOUT USAID

In support of America's foreign policy, USAID leads the United States Government's international development and disaster assistance through partnerships and investments that save lives, reduce poverty, strengthen democratic governance, and help people to emerge from humanitarian crises and to progress beyond assistance to self-reliance.

Last updated: March 04, 2020

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