Afreximbank avails $80mln fertiliser letters of credit

LIVINGSTONE MARUFU

The African Export Import Bank (Afreximbank) has availed $80 million letters of credit to support the country’s importation of fertiliser for the 2018/2019 summer cropping season as the country moves to increase productivity on farms.

The amount was negotiated by the Reserve Bank of Zimbabwe under an Afreximbank facility to import fuel, chemicals and fertiliser for Command Agriculture and forthcoming agricultural season, central bank governor John Mangudya has said.

Following the success of the specialised import substitution programme (Command Agriculture), the importation of fertiliser and raw materials remained among the top import priorities together with fuel and crude oil.

“Afreximbank has availed new $80 million letters of credit facility to support fertiliser importation with fertiliser worth well over $20 million already imported into the country. This enables farmers to kick start the new summer cropping season in style and improve productivity.

“Given that agriculture remains the key driver of our economy; we continue to support the sector especially Command Agriculture to improve livelihoods of the general populace which depend on the sector, reduce a ballooning import bill and save foreign currency,” Mangudya said.

He said the bank would attend to fertiliser producers’ requirements on a continuous basis to ensure there are no shortages.

Meteorological Services Department has already predicted a very short rainy season which farmers must utilise.

Zimbabwe Commercial Farmers’ Union president Wonder Chabikwa said the facility showed government’s desire to ensure that the country has adequate basal and top dressing fertiliser ahead of the new season.

“We hope the fertiliser will be distributed to farmers early to avoid last year’s situation where top dressing fertiliser was in short supply in January. Windmill, Zimbabwe Fertiliser Company, Omnia and Sable Chemicals — have started the drawing down from the facility to enable them to import fertiliser or raw materials used in the manufacture of the critical farming input.”

The country needs a total 500 000 tonnes of compound D and ammonium nitrate if it is to have a successful farming season but local companies have 120 000 tonnes of fertiliser in stock.

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