Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Government of Zimbabwe signs MoU with FinComEco to drive innovation in agriculture markets

  Government of Zimbabwe signs MoU with FinComEco to drive innovation in

                           agriculture markets


March 22, 2018 9:06 AM


  Source: Government of Zimbabwe signs MoU with FinComEco to drive

  innovation in agriculture markets


The Government of Zimbabwe, under the aegises of the Ministry of Foreign

Affairs and International Trade (MoFAIT) and Ministry of Lands,

Agriculture and Rural Resettlement (MLARR) and FinComEco, the fully

integrated Financial & Commodities Ecosystem (FinComEco) providing

services, financing, capacity building and enablement solutions from

supply to demand, have signed a Memorandum of Understanding (MoU) to

jointly develop a range of platforms, projects and initiatives in the

agricultural commodity markets sector in Zimbabwe.


This is expected to be extended into a Memorandum of Agreement (MoA)

subject to approval under the new Joint Ventures Act which came into force

in January 2018. FinComEco with local partners and MLARR will then

establish a joint venture company to develop high impact initiatives to

facilitate agricultural value chain efficiencies through provision of

strategic value-added services including an electronic Warehouse Receipt

System (eWRS), Exchanges, Trading Platforms, Commodities and Input Finance

and Electronic Banking, training and capacity building including the

establishment of a commodities exchange underpinned by Blockchain



The mandate will also deliver marketing information and other value-added

services, such as market access and policy change interventions,

identifying project opportunities in high growth segments of the

agricultural industry working together and with appropriate partners

including International Development Agencies and Development Finance

Institutions as well as the private sector. There will also be investment

in existing and new warehouses with related infrastructure and logistics.


Based on estimates, the value-added by FinComEco to the agricultural

sector in Zimbabwe will be in excess of US$1.5Bn over a 5 year period in

terms of GDP growth resulting in considerable economic and social impact

for the population with the GDP per capita of Zimbabwe estimated to

increase by 1.5 times between 2018 to 2022 as a result of this and wider

initiatives. This is expected to create 90,000 direct jobs in the

agricultural sector. According to the Farmers Unions every job created in

the farming sector creates 7 more jobs in other related sectors. The

FinComEco ecosystem will, therefore, have additional benefits and spill-on

effect on other sectors such as construction and creation of new direct

and indirect jobs with the creation of additional indirect jobs across all

related sectors estimated at 630,000 over a 5 year period.


The Rtd Hon Major-General (Rtd) Dr Sibusiso Moyo, Minister of Foreign

Affairs and International Trade said, “This collaboration marks the

beginning of Zimbabwe’s participation in international trade, which is the

backbone of Zimbabwe’s economy.”


The Rtd Hon. Perence Shiri, Minister of Lands, Agriculture and Rural

Resettlement, Zimbabwe commented, “This collaboration sets Zimbabwe on

track to becoming the bread basket of Africa and beyond with access to

international markets.” He added, “The FinComEco initiative will promote a

viable sustainable agricultural and horticultural sector, by optimising

productivity in addition to ensuring ongoing food security and job

creation for our country.”


Hirander Misra, Co-Chairman of FinComEco and CEO of GMEX Group added, “We

are delighted to be working with the Government of Zimbabwe to facilitate

positive economic and social impact for farming communities and related

sectors. The whole FinComEco ecosystem will be based on the set-up of the

Zimbabwe Commodities Exchange, optimising agricultural inputs,

facilitating access to finance and credit facilities, provision of

warehousing and logistic facilities to enable GDP growth and job



FinComEco is enabled by scalable, centralised, de-centralised & Hybrid

technology solutions delivered by its partner GMEX Group including the use

of Blockchain technology.





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