Business Reporter
FOLLOWING suspension of bulk mobile payments by the Reserve Bank of Zimbabwe on suspicion that they were fuelling foreign exchange market activities, cotton farmers are now switching to bank accounts.

Previously, the majority of farmers were paid via mobile platforms, mainly EcoCash.

After it became apparent that the central bank is not budging on its decision to suspend mobile payments to facilitate investigations into the use of mobile agent lines to fuel illegal foreign exchange deals, cotton farmers have started opening bank accounts.

Government announced the cotton producer price for this year nearly two months ago but most farmers are yet to be paid because the mobile agent lines for most cotton ginners are frozen.

The Cotton Company of Zimbabwe (Cottco), the country’s largest cotton financier, has taken the lead and has already engaged some local banks to open accounts for farmers at various buying points.

Cottco has also introduced a scheme where farmers are voluntarily partly paid in the form of assets, building materials or groceries. Visits by our Harare Bureau at various buying points in Gokwe and Sanyati recently revealed the presence of officers from CBZ Bank, Agribank and First Bank, formerly Barclay opening accounts and issuing bank cards to the farmers.

Several farmers interviewed were generally happy to have bank accounts linked to their mobile accounts.

“Cottco did a good thing by introducing the optional payment method,” said Takawira Shumba, a farmer from Zhombe. “We, however, appeal to the authorities to provide cash because when I transfer my money from bank to mobile wallet, I am charged huge premiums of up to five percent when I transact. This is eroding our earnings.”

Last week, Reserve Bank of Zimbabwe Governor Dr John Mangudya, encouraged cotton merchants to facilitate opening of bank accounts for their farmers. Under the scheme in which Cottco is alternatively paying the farmers through buying them assets, farmers described the arrangement as a viable option in light of hyperinflation.

At Chodha and Musadzi areas of Nembudziya in Gokwe North, Cottco has so far delivered 36 grinding mills to farmers.

“I produced 28 bales and asked Cottco to buy me a grinding mill, buffalo bicycle and some groceries. As we are speaking all these have been delivered,” said Mr Simbarashe Butete, a farmer in Sanyati.

“We have produced cotton for many years but we did nothing with the proceeds from the commodity because many would recklessly spend the money. So this initiative by Cottco has empowered us.”

Another farmer Mrs Midred Goba from Sanyati said: “I am happy with this new Cottco scheme. This year we have been uplifted. I am glad with this scheme because all what I wanted was delivered right on my doorstep.

“This has also insulated us from errant retailers who charge us huge premiums when we transact using EcoCash or One Money.”

Mr Patrick Sibanda in Kadoma added: “We are happy with this facility and it is our hope that it will continue. Things have been difficult during the previous years.

“But now you can choose what you want. We are now able to build houses as cement and all other building materials can be requested and delivered on doorstep.

“Groceries are delivered and this has helped us run away from retailers who used to overcharge us. At the same time the goods we are buying using the Cottco’s payment facility are of normal price unlike what local retailers are charging. This then gives us real value for our money as well as cutting transport costs.”

This year, cotton production is estimated at 101 000 tonnes, an increase of 32 percent from 77 000 tonnes produced last year, according to the Second Round of Crop and Livestock Assessment Report.