Elita Chikwati

Senior Reporter

The Cotton Producers and Marketers Association has engaged stakeholders in the industry in carrying out awareness campaigns in farming areas to educate them on the new payment system to ensure a smooth marketing season.

Cotton companies used to pay growers using mobile network platforms, mainly EcoCash, but this has since stopped after the suspension of bulk mobile payments by the Reserve Bank of Zimbabwe (RBZ) on suspicion of fuelling foreign exchange market activities.

Some cotton farmers had been reluctant to open bank accounts while others did not understand the new system.

Cotton Producers and Marketers Association national chairperson, Mr Stewart Mubonderi yesterday confirmed that some cotton farmers were at first reluctant to open bank accounts as they were used to the old payment system.

He said they had since engaged relevant stakeholders and are going around cotton producing areas, educating farmers on the new payment modality.

“We are holding provincial stakeholders meetings to explain the reason why farmers had to switch to bank accounts .Farmers have started opening the bank accounts, but the financial institutions are yet to reach out to farmers in remote areas. We still have a challenges as we feel the banks are moving at a slow pace.

“Meanwhile, farmers in some areas are getting cash as part payments as they wait for the processing of their bank accounts,” he said.

Mr Mubonderi said the use of banks in paying cotton growers was going to help farmers as they would not be duped by unscrupulous business people who used to charge them premiums.

Mr Mubonderi said they were encouraging business people to also give farmers cash backs for paying wages to their part-time workers.

“Retailers in the communal and farming areas should become bank agents so farmers can from time to time access cash. We have had fruitful meetings and the response from stakeholders is overwhelming,” he said.

Cotton production is estimated at 101 000 tonnes, which is an increase of 52 percent from the 76 687 tonnes obtained in 2018/2019 season due to increased coverage of the Presidential Input Scheme.