Conservation Farming Unit (CFU) project coordinator Dr Oliver Kandela Bulaya has highlighted the critical need for financial literacy capacity building among small and medium farmers to effectively plan, manage, and invest their resources.
During a media briefing, Dr. Bulaya emphasized the pivotal role of financial literacy in transforming the agricultural sector. He stressed that it is crucial for smallholder farmers, as it serves as a leading factor in improved productivity, resilience, and overall quality of life.
Dr. Bulaya further revealed that CFU has successfully concluded financial literacy training programs, reaching over a thousand farmers across the majority of the catchment area. The initiative aims to promote conservation farming technologies to enhance production and productivity, with financial literacy being identified as an essential component of this holistic transformation.
One of the key aspects of the training involved connecting farmers with insurance service providers to help them understand and take advantage of various products and services available in the market. Additionally, the initiative promoted the SAF, a government credit program designed to support all farmers.
The training focused on imparting financial knowledge to farmers for several reasons. It enables farmers to make informed choices about budgeting, investing, and managing expenses, leading to better financial outcomes. Moreover, it equips farmers with the ability to optimize the use of their resources—land, labour, and capital—thereby maximizing productivity and profitability.
Furthermore, the training provided farmers with the necessary skills to understand and navigate credit options, allowing them to secure loans for essential investments in equipment, seeds, and other necessities. Dr. Bulaya stressed that understanding financial concepts allows farmers to assess and mitigate risks, such as fluctuations in market prices or crop failures, through tools like insurance.
The knowledge of financial principles gained through the training aims to encourage investments in sustainable farming practices, leading to long-term benefits for both farmers and the environment. Moreover, financial literacy enables farmers to recognize market opportunities and negotiate better prices, ultimately increasing their income and contributing to better living standards for themselves and their families.
Dr. Bulaya concluded by highlighting that improved financial management contributes to better living standards for farmers and their families, fostering community development. Farmers with strong financial knowledge are better equipped to adapt to economic changes and challenges, ensuring the long-term viability of their operations.
In essence, the CFU’s financial literacy training programs have been instrumental in empowering smallholder farmers with the necessary skills to make sound financial decisions, ultimately contributing to the sustainable development of the agriculture sector and the communities it supports