In the heart of Zambia, a quiet revolution is taking root, one that could reshape the future of agriculture and energy sustainability across Sub-Saharan Africa. Rural Savings and Credit Cooperatives (RUSACCOs) are emerging as unsung heroes, bridging critical credit gaps that have long hindered smallholder farmers’ adoption of climate-smart agriculture (CSA). This shift could have profound implications for the energy sector, as sustainable farming practices reduce reliance on fossil fuels and promote renewable energy integration.
Gershom Endelani Mwalupaso, a researcher at the College of Economics and Management, Nanjing Agricultural University, has been at the forefront of this discovery. His recent study, published in Agricultural Economics (AGRICECON), sheds light on the transformative potential of RUSACCOs. “We found that participation in RUSACCOs can significantly mitigate credit constraints and promote the adoption of climate-smart agriculture,” Mwalupaso explains. “This is a game-changer for smallholder farmers and the broader agricultural sector.”
The study, which analyzed data from 400 randomly selected smallholder farmers in Zambia, revealed that RUSACCO participation can reduce credit constraints by 42% and facilitate CSA adoption by 25%. Moreover, alleviating these credit constraints is associated with a 14% increase in CSA adoption. These findings underscore the crucial role RUSACCOs can play in promoting agricultural sustainability and financial inclusion.
For the energy sector, the implications are substantial. Climate-smart agriculture practices, such as conservation agriculture and integrated crop-livestock systems, can reduce greenhouse gas emissions and enhance carbon sequestration. This, in turn, supports the transition to renewable energy sources by lowering the overall carbon footprint of agricultural activities. “By addressing financial inclusion barriers and providing access to practical agricultural knowledge, RUSACCOs can contribute to reducing the vulnerability of agriculture while fostering sustainable production,” Mwalupaso notes.
The study suggests that repurposing RUSACCOs to emphasize financial inclusion and promote access to agricultural learning platforms can yield triple benefits: agricultural, environmental, and livelihood sustainability. This holistic approach could pave the way for a more resilient and sustainable agricultural sector, one that is better equipped to adapt to climate risks and support the energy transition.
As the world grapples with the challenges of climate change and energy sustainability, the role of RUSACCOs in promoting climate-smart agriculture cannot be overstated. By bridging credit gaps and fostering financial inclusion, these cooperatives are not only empowering smallholder farmers but also contributing to a more sustainable future for all. The research published in Agricultural Economics (AGRICECON) (translated from the Latin as ‘Economics of Agriculture’) highlights the need for policymakers, agricultural stakeholders, and energy sector leaders to recognize and support the transformative potential of RUSACCOs. The future of sustainable agriculture and energy may well lie in the hands of these rural cooperatives, and their impact could be felt far beyond the fields of Zambia.