Has the Electronic Voucher System Created Employment? The Case of Five Districts of Zambia

The system enables farmers to purchase inputs such as seeds, fertilizers, and pesticides through electronic vouchers, which are redeemed at local agro-dealers. The e-FISP has been rolled out in 31 pilot districts, and the study found that it has created jobs among local dealers, both in new agro-dealers and in existing ones as they expand. The study estimates that 1,700 direct jobs were created in the pilot districts, and scaling this up suggests that the full rollout of the e-voucher could result in 2,900 new direct jobs in agro-dealers nationwide. This is a conservative estimate, as the study only examined the number of new jobs among agro-dealerships, and the likely number of new jobs created as a consequence of the e-voucher will be higher once indirect employment opportunities in related sectors are taken into consideration. National input suppliers and dealers are also expanding their workforce in response to the countrywide rollout of the e-voucher. The study found that across the three major suppliers (Omnia Fertilisers, SeedCo, and ETG) there has been a 58% increase in jobs since the introduction of the e-voucher, resulting in around 100 jobs. The new jobs created will be a mix of skilled and unskilled labor, including marketing and sales, cashiers, drivers, security, and casual laborers. The study suggests that the full rollout of the e-FISP creates significant opportunities for employment across all districts. The findings demonstrate that Zambian companies are responding positively to the e-FISP, and the benefits would not be felt if traditional FISP were to continue. The study recommends that the Government should continue pursuing the countrywide rollout of the e-FISP and consider putting in place mechanisms to promote gender equality by increasing the number of women engaging and being employed in agro-dealing. The Government should also deliberately ensure that it acts to tackle the barriers to growth faced by agro-dealers, including poor local infrastructure and access to finance. The study used a simple multiplier effect model to determine the number of jobs created and the potential of creating new jobs in five selected districts and consequently countrywide. A qualitative approach was used on 13 randomly selected agro-dealers in five districts (Chipata, Kalomo, Kapiri-Mposhi, Mazabuka, and Ndola), accompanied by key informant interviews and secondary data sources. The study's findings have significant implications for the Zambian Government's agricultural policy. The e-FISP has the potential to create jobs and stimulate economic growth in the agricultural sector, which is a critical component of the country's economy. The study's recommendations should be taken into consideration by policymakers to ensure that the e-FISP is implemented effectively and that its benefits are maximized.