The Sunday Mail
Livingstone Marufu —
THE Agricultural and Rural Development Authority, a parastatal, has struck a US$100 million deal with private players to put more than 50 000 hectares under cereal production.
Since enactment of the Joint Venture Act in May 2016, Arda has been securing partnerships with private sector investors to boost its operations. While commercial banks demand interest of more than 20 percent for loans, joint venture partners are offering interest rates of between five percent and eight percent.
Agriculture, Mechanisation and Irrigation Development (Crop Production) Deputy Minister Davis Marapira told The Sunday Mail Business that, “We have a lot of partnerships, joint ventures and contract farming across the country, but one of the most notable partnerships is that one of Arda and other private partners who have invested over US$2 000 on every hectare in buying inputs, irrigation equipment and everything that can be needed in farming.”
He said an additional 100 000ha were under contracting farming schemes for maize and tobacco.
“We also have John Deere, an American company that manufactures diesel engines and agriculture equipments, (that) has invested US$3 million in equipment .
“John Deere is offering farmers farming implements, tractors, disc harrows, among other farming equipment, at affordable interest rates that range from five to eight percent which are way below our banks’ (interest) rates,” said Deputy Minister Marapira.
Other companies taking part in key joint ventures include National Foods, PHI, Southern Region Trading Company and Blue Ribbon. Through the partnerships, farmers have been able to access inputs, state-of-the-art tractors, centre pivots and other equipment.
Recently, the Grain Millers Association of Zimbabwe partnered Innscor and other companies on a US$3 million investment in winter wheat in Lion’s Den in Mashonaland West.Millers and Southern Region Trading Company, National Foods and PHI Commodities have partnered farmers in the Makonde area of Mashonaland West to put 4 000ha under maize in the 2016/2017 summer cropping season.
National Foods has invested US$6 million in small-scale contract farming.As the country focuses on increasing productivity, more than 64 irrigation schemes have been established under the first phase of Brazil’s More Food for Africa Programme.
The second phase will support another 60 irrigation schemes for small-scale farmers. Brazil provided the US$98 million facility to Government, repayable over 10 years.
