Participation of small and medium entrepreneurs in local economic development: assessing factors affecting participation of small scale agro-dealers in the supply chain of subsidized agricultural inputs through the electronic voucher system in Katete district of Zambia

This study attempted to determine the extent to which the implementation of the electronic voucher Farmer Input Support Programme (FISP) scheme promoted the participation of agro-dealers and contributed to job creation in Katete district of Zambia. Using the framework of value chains, the study analysed the dynamics of agro-dealers’ participation and agricultural productivity during the 2014/2015 to 2017/2018 implementation period. The e-voucher scheme which started as a pilot in few districts in 2014/2015 agriculture season was scaled up to the entire country in 2017/2018 farming season. Employing a qualitative phenomenological inquiry on a sample of 21 participants, the findings revealed that the scheme provided an opportunity for agro-dealer’s participation in the supply chain of agricultural inputs. This made positive contribution towards growth of business for agro-dealers resulting into job creation. Even though agro-dealers faced challenges such as limited internet connectivity, limited financial capacities, poor banking processes and suspected incidences of corruption, the e-voucher FISP scheme subsequently contributed to crop diversification by beneficiary farmers. It was evident through the findings that the market coupled with state’s interventions can be a panacea for inclusion and equitable distribution of resources. The study therefore calls for increased state’s involvement in the management of value chains to ensure equitable distribution of gains across all value chain players.