The Sunday Mail
THE Infrastructure Development Bank of Zimbabwe has earmarked US$4 million to finance crop and livestock production in the 2014 / 15 summer season. This comes as stakeholders have begun pooling resources to support agriculture to ensure food security. The Zimbabwe Agenda for Sustainable Socio-Economic Transformation seeks to create a self-sufficient and food surplus economy.
IDBZ chief executive officer Mr Charles Chikaura said the bank intends to finance horticulture, livestock and several crops.
“The bank has earmarked US$4 million to finance agriculture in the 2014 / 15 season.
“The funding will be targeted towards projects in horticulture, livestock, maize seed, tobacco and various summer crops,” said Mr Chikaura.
IDBZ has a specialised unit focused on agriculture and over the years, different support levels have been given to the critical sector.
However, the duration and cost of the loans for 2014 / 15 could not be established.
The facility will complement the Presidential Inputs Scheme, usually funded to the tune of US$200 million and targeting small-holder farmers.
Zimbabwe Farmers’ Union second vice-president Mr Berean Mukwende said there are over 300 000 farmers with six hectares of land or more and each requires about US$800 to grow grains every season.
“These farmers contribute about 80 percent of the total national grain output every season but they face challenges in obtaining funds because they do not have security required by banks when borrowing.
“So, most of them rely on contractors for inputs but unfortunately, they get low prices for their crops from contractors. It is the contractors who get money from banks and put a mark-up when they later extend it to farmers.”
Agriculture contributes 15-18 percent of GDP, over 40 percent of national export earnings and 60 percent of raw materials to agro-based industries; while more than 70 percent of the population derives its livelihood from the sector directly or indirectly.
