Lending to Agribusinesses in Zambia

milk quality and create milk quality assurance systems in conformity with the
high standards required by milk processors and consumers. Some milk
collection centers have already made plans to begin dairy processing
themselves.

(ii) Increased access to pure dairy breed cows by smallholders enabling them to
increase their milk production and marketing, and raise incomes significantly.
Many smallholders are now able to market an average of 30 liters of milk
daily from previous averages of less than 4 liters a day, realizing gross annual
incomes of about $4,100 from two dairy cows for each producer.

(iii) Establishment of efficient cold chain milk transportation channels either
owned by single cooperatives or joint cooperative milk transportation
ventures. As a result, smallholder dairy producers have increased access to
better markets.

(iv) Increased access to artificial insemination and veterinary services by dairy
farmers, enabling them to improve animal health, increase their herds and
consequently increase their incomes.

(v) Establishment of zero grazing schemes that have enabled small-scale dairy
producers to significantly increase milk productivity.

The Financial Environment and Access to Credit

The banking industry in Zambia is composed of the Bank of Zambia, which is the central
bank responsible for overall regulation of the banking industry and for setting national
monetary policy, and 13 commercial banks. These banks include 8 foreign owned
(including one that was recently privatized by the Zambian government); 4 owned by

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