GOVERNMENT is working on establishing a Horticulture Export Revolving Fund to the tune of US$30 million in line with the Horticulture Recovery and Growth Plan.

The horticulture industry is regarded as a low-hanging fruit and contributes US$77 million to the country’s export earnings and employs about 18 700 people, according to official figures.

The sector is one of the major foreign currency earners and with adequate support, it is projected to grow its contribution value to about US$300 million annually.

The export revolving fund is, thus, envisaged to assist in boosting productive capacity and tackling challenges related to unavailability and lack of access to appropriately structured financing for short to long-term expenditures.

The fund would also close the funding gap in the value addition and beneficiation of fresh produce, which has resulted in horticultural value-chain margins being unsustainably squeezed.

In a post-Cabinet media briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa, said the new fund will support export-oriented horticultural production companies.

“Cabinet considered and adopted proposals on the establishment of the Horticulture Export Revolving Fund. The fund will be financed to the tune of US$30 million in order to support export-oriented horticultural production companies with their foreign currency requirements,” she said.

“It will be recalled that Government has proposed to use part of the Special Drawing Rights (SDRs) received from the International Monetary Fund (IMF) to support the productive sectors of the economy.”

Minister Mutsvangwa said under the agriculture productive sector, priority has been placed on horticulture and irrigation development. She said Treasury had engaged stakeholders in the horticulture export sector on the modalities for the establishment of the Horticulture Export Revolving Fund.

Horticulture is one of the key sub-sectors of the agricultural sector with substantial potential of successful production across all agro-ecological regions. Zimbabwe was among the top three horticulture producers in the world after the Netherlands and Ecuador up to 2002.

“The Second Republic intends, through the revolving fund, to restore Zimbabwe’s former glory. Value addition increases return on investment by offering a diversified group of off-takers for horticultural farmers, even for lower grade produce,” said the minister.

“Cabinet wishes to inform the public that the facility will be accessed through the normal banking channels, with applicants or intended beneficiaries submitting their requests to participating banks with the requisite information.”

Government and the participating banks will monitor and evaluate the use of resources advanced to borrowers, while a multi-sector coordination committee has been set up, said Minister Mutsvangwa.

She said the roles of the committee will mainly be to periodically review the performance of the fund in terms of amount paid out, number of beneficiaries and non-performing loans. It will also periodically assess how the deployment of resources through spot visits to beneficiaries and periodically review beneficiary export firms for programme monitoring and evaluation.

Minister Mutsvangwa said Cabinet was aware that farmers have been disadvantaged by lack of markets. As a result of the Second Republic’s current engagement and re-engagement efforts, markets were beginning to open up.

“The fund will ensure the capacitation of ZimTrade and the Agricultural Marketing Authority (AMA) to enable them to open up verifiable markets for horticultural farmers,” she said.

“Another key highlight under the fund is the establishment of value-addition facilities close to production bases in order to unlock the country’s horticultural smallholder potential.

“Beyond production, the fund also makes provisions for logistics and cold chain facilities, a move which will lower post-harvest losses and facilitate market access. Mentorship programmes will also receive support under the Fund.” – @DubeMatutu.