A Smarter Way to Support Farmers in Zambia

North of Zambia's capital Lusaka, the town of Kapiri Mposhi sits along one of the country's main arteries, known as the Great North Road. It's also a center for agriculture, with significant rainfall and abundant maize, wheat, soy and tomatoes.

Farmers here say the government's e-voucher system gives them freedom to choose their own inputs and diversify their crops. The system also aims to help them replenish their soils and improve long-term productivity.

Headwoman Teupula, one of the community leaders in Kapiri Mposhi, praises the revamped system. Before the e-vouchers came to exist, she traveled long distances to purchase fertilizers and seeds, paying extra for food and lodging. Nowadays, local agro-dealers provide a flurry of options close to her doorstep, resulting in higher yields.

For more than a decade, Zambia subsidized inputs to assist farmers. Under the old direct supply model, farmers received fixed packs of fertilizer and seeds distributed -often ill-suited to local soil and conditions- through central depots leaving them with little choice on what to plant, but maize.

Over time, this one-size-fits-all approach contributed to reduced productivity and soil degradation. In 2023-2024, when Zambia experienced its worst drought in decades, smallholder farmers were not equipped with the tools and options to cope. Meanwhile, the old subsidy model stretched the ministry's budget to its limit.

Launched in 17 districts in the 2023-2024 farming season, the FISP e-voucher system grew from an initial number of 220,000 farmers to close to around 740,000 farmers across 74 districts in 2024-2025 season. In the 2025-2026 season, all remaining districts will be covered by the e-voucher system, reaching in total above 1 million farmers.

Farmers say the FISP is remarkably easy to use. They first make a small deposit at a bank. The Ministry of Agriculture confirms receipt by text message and creates a voucher with a code. Farmers use the code to buy what they need from 650 registered agro-dealers, who receive transfers from the government after they release the inputs.

Most of the farmers have reported higher yields under the new system, according to an independent survey by Kivu International. The farmers surveyed said they are satisfied with the transparency and ease of handling mobile money and smart phone applications.

In 2023-2024 season, Zacchaeus Saleh Mwale harvested fewer than 30 bags of maize. Since joining the e-voucher system, his productivity has significantly increased since the new system and the end of the drought. "We are close to one hundred bags. We have food security, and we are able to support our grandchildren."

The shift to a market-oriented system has also changed local input markets by creating demand for more diversified farming equipment, seeds, fertilizers and services. This has encouraged competition among agro-dealers, who now respond directly to farmers' needs rather than government distribution schedules.

As a result, following the roll out in the 2024-2025 season, 86% of surveyed agro-dealers reported hiring additional staff to meet rising demand. Around 40% of those hires have been retained. For many rural towns, this has meant stronger local businesses, new jobs, and more reliable access to farming products and services.

Key highlights of the survey included:

• Improved timeliness - farmers were able to redeem e-vouchers and use inputs. More than 50 percent of farmers redeemed inputs by the end of October 2024 and 97% by the end of December 2024.
• Improved input quality -97% reporting purchasing good quality.
• More choice of inputs -76% of farmers reported diverse range of inputs.
• Better systems - 90% found the deposit process straightforward.
• Improved communications - 86% of farmers said registration and processes were clear.

"What we're seeing is that the government has repurposed the input subsidy program to transform agriculture and crowd in the private sector in line with our AgriConnect initiative," said Sergiy Zorya, Lead Agricultural Economist for Farming and Agribusiness at the World Bank Group. "This new approach can create markets, generate jobs, diversify crops, and improve nutrition."

The World Bank is supporting over 40 countries to review their spending on agriculture and is already helping shape US$13 billion in expenditures to deliver better value for farmers and taxpayers, while promoting healthier soils and ecosystems. Through the Multi-Donor Trust Fund Food Systems 2030 (FS2030), over US$100 million of grant funding has already been allocated to test innovative methods for repurposing fertilizer support and other public programs across seven countries.

The World Bank Group is launching a new program to help seven countries in Africa repurpose input subsidies under the new Knowledge Academy, drawing on the experience of Zambia with e-vouchers.