Call for low interest rates
RYAN CHIGOCHE
An executive at financial services provider AFC says it is critical for the agriculture sector to be supported by long-term and concessionary funding.
AFC corporate projects manager, Alice Mapfiza, who spoke at a recent agriculture conference held in the capital, said high interest rates also adversely affect the sector.
It comes after the Reserve Bank of Zimbabwe recently raised interest rates to 200% from 80%.
“One of the main challenges is short term funding coupled with high interest rates. This cannot transform the agriculture industry. We weed concessionary and long term funding.
“As a bank we hope that in the 2022/23 season we will have medium to long term financing at low interest rates that is the objective that we are aiming for,” Mapfiza said.
Several farmer union representatives who also spoke at the event concurred with Mapfiza.
They said the interest rate at 200% was “punitive”.
They want the interest rate to be reduced to a single digit.
However, at its recent meeting the Monetary Policy Committee maintained the interest rates at 200%, as part of effort to curb speculative borrowing, which previously sparked unrelenting exchange rate volatility.
Annual inflation also rocketed to 285% in August this year.
But, it has since eased to 255% in November.
