‘Financial access barriers choke agric sector growth’

SAMANTHA MADE

Zimbabwe’s agricultural sector is reeling under severe financial access constraints that continue to choke productivity and limit investment, as farmers struggle with high interest rates, collateral demands, and weak institutional coordination.

The crisis has left the sector desperate for new solutions to restore confidence and unlock the flow of credit across rural communities.

Speaking at the  ongoing  Annual Financial Inclusion Conference in the capital Harare, agricultural economist Ignatius Govere, who represents the Rural and Agricultural Finance Thematic Working Group (TWG), said financing hurdles and coordination challenges remain the biggest bottlenecks to the sector’s growth.

“The one that we’re putting on the top is coordinating and participating challenges,” Govere said. “Not that we are criticizing the previous National Financial Inclusion Strategy 1 (NFIS1) program, but we are highlighting these challenges so that we can provide solutions for NFIS2.”

Govere lamented persistent weaknesses in participation, feedback, and policy implementation, which have left most rural farmers excluded from mainstream financial systems.

“Poor attendance, inconsistent participation, and weak feedback mechanisms are just a few of the hurdles we face,” he noted, calling for a more inclusive and participatory approach.

But it is the lack of affordable finance that remains the sector’s most urgent concern. Govere said farmers are struggling to access capital due to high lending rates, prohibitive transaction costs, and tough collateral requirements, which have eroded confidence and slowed agricultural investment.

“We need secure concessionary credit lines and promote credit financing mechanisms for agriculture,” he said. “We must also discourage digital and mobile financial transactions with high charges.”

Govere added that without deliberate intervention to expand affordable credit and lower costs, many farmers will continue to rely on informal borrowing, undermining efforts to build a structured, competitive agricultural economy.

To overcome these hurdles, Govere urged the government and financial institutions to adopt digital and AI-driven solutions to improve access, transparency, and data management within the sector.

“We need to expand the use of digital AI platforms to come up with profiling—for example, access management and so on,” he said. “We need more integration of mobile-based tools. It’s certainly a new thing in the system, and there is very little awareness about these tools.”

The TWG is also exploring green financing models to cushion farmers against climate shocks and promote climate-smart agriculture.

“This will help to mitigate climate shocks, because climate change is here, and farmers are being affected,” Govere said. “So this will be an innovative solution that should integrate this.”

He emphasized the need for institutional collaboration to ensure policy coherence and stronger linkages between government, the private sector, and civil society.

“We need to work together to create a more supportive policy environment,” he said, calling for policy alignment, digital knowledge hubs, and simplified business registration.

Financial literacy also remains a missing link. Govere said empowerment programs must prioritize education and awareness to help farmers better understand financial products and manage resources effectively.

“Financial literacy and farmer empowerment—we need to deploy more financial education content. It’s very limited,” he said.

Government efforts are now focused on formalizing smallholder enterprises, particularly those led by women and youth, to improve their eligibility for credit and inclusion in national development programs.

Among the key proposals are the expansion of AI-driven financial profiling systems, integration of mobile-based platforms, and promotion of smart finance and green lending frameworks to boost access and sustainability.

The sector is also pushing for the creation of an online national financial reporting portal to enhance coordination, transparency, and accountability.

“We are proposing the creation of an online national architectural financial reporting portal so that we can share these resources, data, and photos,” Govere said, outlining the roadmap for reform.