Banks mobilise US$425m for agric season
LIVINGSTONE MARUFU
Zimbabwe’s largest bank, CBZ Bank, and AFC have mobilised a combined US$425m to go towards financing the upcoming cropping season, Business Times can report.
“AFC has mobilised US$155m and U$30m raised from agrobills while CBZ Bank has (raised) US$240m with 50% government guarantee. Both financiers have the leeway to buy back the crop,” Lands, Agriculture, Fisheries, Water and Rural Development minister, Anxious Masuka, told Parliament.
He said the project would partly be funded through AFC and CBZ, backed by the government performance guarantees for the contracted farmers through the Treasury.
Farmers will apply for loans and repay once they sell their produce.
Under the National Enhanced Agriculture Productivity Scheme (NEAPS), 237 000 hectares will be utilised with maize under 205 000 hectares, 25000 hectares under soyabeans, 5000 hectares under sunflower and 2000 hectares under sorghum.
NEAPS is a special command agriculture programme, which changed its modalities during the 2021/22 season when the government transferred responsibilities to the banks.
The AFC Land and Agriculture Development Bank will support farmers in the 2022/2023 summer season with funding for seed, fertilisers, chemicals, mechanisation, irrigation, electricity, labour, combine harvesting services and transport, among others, he said.
Most farmers have applied for the scheme with over 5000 farmers expected to join the programme.
It is expected that preference would be given to those with functional irrigation and those farming in high rainfall potential areas.
The development comes at a time when more than 70% of Zimbabwean soils are acidic and require liming to correct pH for optimum crop productivity.
“There is a need for the training and distribution of lime to amend pH levels to increase production.
“Liming should be a prerequisite for entry into the government facilitated programmes for A1 and A2 farmers,” Masuka said.
He also said there was a need for pre-planting prices and post-harvest prices.
But this is very difficult especially under a volatile environment where prices change on a daily basis.
“Government will announce pre- planting producer prices for strategic crops such as maize, traditional grains, cotton and soya beans as per the norm.
“The price determination policy: Cost build up plus 15-25% margin and a 30-33% import substitution incentive paid in US$ and these are floor producer prices or Minimum Support Prices,” he said.
The government has activated the Warehouse Receipt System to facilitate farmers’ preparedness for the 2022/23 season.
Statutory Instrument (S1) 145 of 2019, SI 96 SI 97 and SI 188 of 2021 were primarily meant to minimise side-marketing and protect financiers.
Masuka added that Trade Protocols, especially the Citrus Trade Protocol should be extended to other exports such as blueberries, and avocados.
