Agribank launches US$15 maize support facility
13/11/2012 00:00:00
by Staff Reporters
THE government has launched a US$15 million Agricultural Credit Facility
targeted at the through Agribank to help boost maize production in the new
farming season.
Agribank Chief Executive Sam Malaba said the facility would be targeted at
the A2 commercial farmers in the high rainfall maize growing regions of the
country.
“The government has availed a US$15 million agricultural credit facility at
a concessionary rate of 4-5 per cent,” Malaba told reporters in Harare on
Tuesday.
“The facility will be released in tranches with the initial US$5 million
having already been disbursed to Agribank. We hope this facility will go a
long way in boosting the production of maize and ensure food security in the
country.
“One of the major challenges we have been facing is lack of funding for
agriculture which matches the backbone status of the sector. We therefore
feel with such reasonable interest rates, more farmers would take up the
facility.”
Prospective beneficiaries can get up to US$100,000 each but must satisfy the
requirements of the bank which include a proven track record of maize
deliveries to the Grain Marketing Board.
Malaba said the revolving facility was a welcome boost at a time poor
agricultural performance had cascaded negatively into other economic sectors
such as manufacturing which rely on the through-put from the sector.
“We are positive that this facility will boost other sectors of the economy.
We have just seen a downward revision of the economic targets and this has
been largely due to the failure by the agricultural sector since it is the
anchor sector,” he said.
“We hope this will provide the stimulus in the whole economy. We see no
reason why the farmers will fail to pay the facility as we are giving it at
concessionary rates with a 12 month period.”
The World Food Programme (WFP) recently revealed that at least 1.6 million
people would need food aid around the country this year following a poor
agricultural season.
The United Nations agency said it would need about $119m for an aid
programme which would run until the next harvest in March next year.
Food shortages are being blamed on erratic rainfall and dry spells, limited
access to seeds and fertilisers, a reduction in the planted area, poor
farming practices and inadequate crop diversification.
The worst-hit areas are the chronically dry regions of southern Zimbabwe.
Once a regional breadbasket, Zimbabwe has been facing perennial food
shortages in recent years following a slump in food production blamed partly
on President Robert Mugabe’s controversial land reforms which saw the
seizure of white-owned farms for re-allocation to landless blacks.
The majority of the beneficiaries lacked the skills and means for
large-scale farming, and were given little support from the government.