US$50m kitty to harness Zimbabwe agric sector’s full potential

Elita ChikwatiFARMERS are optimistic that the Government’s recent initiatives, including the establishment of a US$50 million buffer fund meant to revitalise the agriculture sector, will enhance access to funding thereby boosting productivity.The Government has also come up with a policy that will see state land being managed by the Agricultural Finance Corporation (AFC) to mobilise funds to support agricultural activities.This was revealed by Lands, Agriculture, Fisheries, and Rural Development Minister Dr Anxious Masuka while speaking at the recent Zimpapers Tobacco Conference sponsored by CBZ,TIMBOneMoney,POSB, Hunyani, Clover Leaf Motors, TSLPacific Cigarrete Company, and Purleigh Investments.Minister Masuka outlined the Government’s plans to enhance the sector’s productivity and financial stability He revealed that the ministry had developed a policy that would see the Agricultural Finance Corporation (AFC) taking sole responsibility for managing land, as part of efforts to boost local funding for agriculture while a US$50 million buffer fund had been proposed to ensure timely payments to farmers for their grain deliveries.“We made a policy as Government to ensure land opened up is not given to cooperatives again and will never be given to private developers again There will only be one entity to develop that land The allocation of 11 000 hectares of land to the AFC Land Development Bank is expected to raise funds that will be reinvested in financing agriculture

Minister Masuka highlighted the importance of this move, saying it marked a significant step towards efficient land use.Tobacco Farmers union Trust president, Mr Edward Dune, commended the Government for developing strategies that strengthen local beneficiation of value chains and enhance agricultural productivity.“We have been clamouring for this for over a decade now but failing to identify the possible financial sources that could be subscribed to fill such gaps The industry has been affected by side effects associated with offshore funding, which has disadvantaged farmers This will be a real wake-up call that if some players cannot shape up, then they should ship out,” said Mr Dune He urged authorities to expedite the implementation and monitoring of the policy.Zimbabwe Tobacco Growers Association president, Mr George Seremwe, said the move would positively impact the localisation of funding

“Nevertheless, there is a need for consultation and involvement of farmers Farmers should work closely with AFC There should be wider consultations with farmer organisations and the farmers themselves to ensure the facility is utilised in a sustainable productive way,” he said.Zimbabwe Commercial Farmers union president Dr Shadreck Makombe said local funding was important not only in the tobacco industry but the whole agriculture sector “All sectors, and not only tobacco, are in need of funding

Of course, the US$50 million, although not enough, will go a long way Empowering and supporting AFC will play a great role in invigorating agriculture,” he said.The issue of local funding has been one of the major factors affecting the agriculture industry, particularly tobacco Ninety-eight percent of tobacco growers are producing the crop under contract arrangements The merchants rely on offshore funding and this means the bulk of the money from the sector does not benefit locals

For every dollar invested in tobacco production, US$0.88 goes back and only US0$.12 remains in the country A number of farmers have been calling for local tobacco funding, which they said would be affordable and sustainable Through local funding, the farmers will be able to fully participate in the value chain and also add value to the crop and sell finished products.Minister Masuka said the Government was also working on eliminating challenges presented by contract farming to ensure both farmers and merchants derived value from the crop “We want to ensure the tobacco value chain is stronger and transparent so that there can be equitable distribution of benefits within this value chain,” he said.Share on FacebookPost on XFollow usSave

Originally published on Zimbabwe Herald

Source: Zimbabwe Herald