OPC raises red flag over agricultural financing constraints

LIVINGSTONE MARUFU

The Office of the President and Cabinet (OPC) has raised concern over limited access to finance and high interest rates, warning that the twin challenges remain major impediments to efforts aimed at boosting agricultural production.

Despite agriculture being the backbone of Zimbabwe’s economy, many farmers — particularly smallholders — continue to struggle to access affordable credit to improve productivity and scale operations.

Speaking at an interactive meeting between Ministers of State for Provincial Affairs and Devolution and officials from the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Chief Secretary to the President and Cabinet, Dr Martin Rushwaya said more work must be done to ensure that funding is accessible and affordable.

“Key to the sustainability of agricultural production is the issue of agricultural financing, especially for smallholder farmers who have limited access to affordable loans due to lack of collateral security,” Dr Rushwaya said.

“This is further compounded by the high interest rate regime in our banking system.”

He said Government would continue working through coordinated fiscal and monetary policies to incentivise agricultural production and unlock funding for the sector.

Dr Rushwaya noted that through collaborative efforts between the Ministry and farmers, the agricultural sector has registered remarkable progress, contributing to economic stability, food security and export growth to markets such as China, the United Arab Emirates, the United Kingdom and Mozambique.

However, he cautioned that access to agricultural inputs remains problematic.

“I urge the two parties here today to work together to ensure that input distribution programmes — for instance, the Presidential Agriculture Inputs Scheme — are more effective, including mechanisation services,” he said.

“Delays in accessing inputs will compromise productivity and negatively impact this key sector of the economy.”

Rushwaya said the Ministry must deploy agricultural advisory officers to areas experiencing shortages in order to strengthen farmer training on contemporary farming techniques and ensure awareness of new agricultural policies.

He added that this would enhance monitoring and evaluation systems, enabling real-time data collection and processing to inform operational and policy decisions.

On land utilisation, Dr Rushwaya said sustainable land management remains a critical issue, stressing the need to balance agricultural productivity with environmental conservation and community interests.

“We must ensure that land is utilised productively and sustainably, while avoiding conflicts between traditional leaders and investors. This balance is key to unlocking agricultural potential and ensuring food security,” he said.

He also called for urgent resolution of land disputes, particularly cases involving double allocations, underutilisation of allocated land and limited mechanisation, all of which undermine optimal productivity.

Additionally, Dr Rushwaya underscored the importance of accelerating value addition strategies for agricultural products across provinces to create wealth for farmers and enhance export earnings.

“We also need to ensure that our agricultural products have quick access to markets, while putting safeguards in place to avoid exploitation of our farmers by unscrupulous middlemen,” he said.

“Our provinces should identify strategies to enhance production, processing and market access to boost food security and exports.”

Zimbabwe’s agricultural sector has undergone significant transformation between 2019 and 2025 under the Second Republic, with production value rising from US$5,2bn and projected to exceed US$10bn by 2030.

Key achievements include food self-sufficiency in major staples, record-breaking tobacco output, and a sustained drive towards mechanisation and modernisation — milestones attributed to the Agriculture, Food Systems and Rural Transformation Strategy.

The OPC, through its Presidential Affairs and Devolution Department, is responsible for coordinating all Provincial Ministers’ offices.

Dr Rushwaya said going forward, such high-level engagements should be convened and coordinated by the OPC in collaboration with the respective line Ministry, including interface meetings with other ministries, departments and agencies.

He also highlighted the centrality of water security to agricultural growth.

“Access to clean water is a fundamental human right, as it is needed for both consumption and production,” he said.

With support from Central Government, provinces must ensure equitable access to water resources to effectively support agricultural production and related industries.

In light of climate change, Rushwaya called for increased investment in dam infrastructure and irrigation systems to climate-proof agriculture and sustain productivity.

He commended the Ministry, working in collaboration with other agencies, for establishing Village Business Units supported by dams and boreholes across the country, saying such initiatives were critical in strengthening rural livelihoods.

“There is therefore need to prioritise investments in water infrastructure to ensure that all Zimbabweans have access to this basic necessity,” he said.

“This undoubtedly aligns with our commitment to sustainable development and improved livelihoods.”