The Sunday Mail
A2 farmers are pinning hopes of securing funds for this cropping season on the Industrial Development Bank of Zimbabwe (IDBZ) as most commercial banks are “failing to lend”.
In July, the IDBZ earmarked US$4 million to finance crop and livestock production.
Zimbabwe Farmers’ Union (ZFU) president, Mr Abdul Nyathi told The Sunday Mail that several members of his union approached the IDBZ for loans.
He said commercial banks were turning away farmers, citing lending incapacity.
“We are talking to IDBZ to supply commercial farmers with input loans and not only infrastructure loans. If farmers are given money to build dams and other infrastructure without seeds and fertilisers, they will not be able to repay loans as the money will not multiply.
“Banks are not giving loans to the commercial farmers while Government does not have money to give them. The farmers are funding themselves.”
However, Zimbabwe Commercial Farmers’ Union (ZCFU) president, Mr Wonder Chabikwa said most A2 farmers were failing to meet IDBZ’s loan application criteria, which includes collateral of six assets such as houses.
“A2 farmers are struggling to purchase inputs. Only those who sold maize to the Grain Marketing Board early bought some inputs,” Mr Chabikwa said.
“The GMB is yet to pay those who delivered grain after July. And banks are not giving us loans. Prices for seed and fertilisers were hiked. We are negotiating with input suppliers for a stop-order facility that allow farmers to buy inputs on 30 or 50 percent credit with an option of finishing payment later.”
IDBZ public relations officer Mrs Priscilla Mapuranga had by yesterday afternoon not responded to questions e-mailed to her.
Bankers’ Association of Zimbabwe president Mr Sam Malaba referred all inquiries to a senior Baz member handling the matter. The official was unreachable.
In previous seasons, commercial banks were reluctant to lend to farmers without bankable collateral.
