🇿🇲 BUSINESS | Treasury to Cut FRA Funding in 2027 as Govt Cites Excess Maize Purchases
Finance and National Planning Minister Situmbeko Musokotwane says the government plans to sharply reduce Treasury funding to the Food Reserve Agency (FRA) in 2027 after spending more than budgeted on maize purchases during the current marketing season.
Musokotwane said the agency’s substantial maize stocks would help finance future purchases, reducing the need for additional government funding.
“From the Treasury side, there will be low money to give to FRA to go into the market because there is enough maize and there are large stocks of maize [which] when sold can still enable them to go into the market,” he said.
Speaking during discussions on Zambia’s proposed new financing programme with the International Monetary Fund on Friday, October 9, Musokotwane explained that this year’s expenditure had effectively covered part of the country’s food security requirements for 2027.
“What has happened this year, it is like we have spent money not just for 2026 but also to cover for food security in 2027,” he said.
The planned reduction comes amid pressure on public finances, with higher-than-budgeted FRA expenditure among the factors affecting government spending.
The FRA purchases maize from farmers to maintain national strategic food reserves and support food security, making its financing an important issue for agricultural markets.
A reduction in Treasury support could increase the agency’s reliance on revenue from existing maize stocks and private-sector participation in the grain market.
However, the extent of the funding reduction and its implications for maize purchases from small-scale farmers have yet to be clarified.
The government’s approach will place renewed attention on the FRA’s ability to manage its stocks, generate revenue and maintain adequate strategic reserves without substantial additional Treasury financing.
The People’s Brief | Francine Lilu
October 12, 2026