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AFC Holdings has been provided 10 000 hectares of land worth US$500 million by the Government to allow it to capitalise its operations as it seeks to position itself as an engine of agriculture financing in the country, legislators heard yesterday.
An additional 30 000 hectares is on its way, worth US$1,5 billion, which will further give impetus to the Government’s agriculture financing as the Second Republic seeks to achieve an upper middle class economy by 2030 in line with National Development Strategy 1.
This was said by AFC Holdings board chairperson, Mr James Mutizwa, while addressing Members of Parliament’s portfolio committee on Lands and Agriculture during a workshop.
The committee chaired by Gokwe Nembudziya legislator, Cde Justice Mayor Wadyajena (Zanu PF), wanted to have an appreciation of the financial institution’s operations.
Mr Mutizwa said they were keen to revolutionise agriculture and the measures they were taking will transform the sector.
He said of the 10 000 hectares of land there is 40 hectares property in the upmarket of Manresa Park, in Harare, whose value is US$25 million before it has been developed.
Mr Mutizwa said they already have title to the Manresa Park property.
“We are going to monetise the land by developing it and sell the stands. We have 10 000 hectares in urban and peri-urban.
“We will use the money for our capitalisation while another portion will be used for our operations. We also need to meet our statutory requirements with the Reserve Bank of Zimbabwe. We are already using the Manresa property for collateral,” said Mr Mutizwa.
Next year, AFC Holdings should have been transformed to be the backbone of agriculture financing.
“We envisage that by 2022-23 season, AFC will be the biggest financial institution in agriculture financing,” said Mr Mutizwa.
The bank will retain a portion of the proceeds from the sale of the land while another will be remitted to the Government, which is the shareholder.
AFC Holdings chief executive officer, Mr Francis Macheka, said the establishment of AFC was consistent with President Mnangagwa’s vision of leaving no one and no place behind by reaching out to everyone including low income earners in agriculture financing.
“We also want to bank the unbanked. We have 2,3 million small-holder farmers and we need to take them on board. There is need to bring these people into the mainstream economy,” said Mr Macheka.
Cde Wadyajena said farmers expected clarity on whether 99-year leases were being accepted as collateral, and called for collaboration between Parliament and Government ministries. “What we want are results. I am sure this is the first phase of our engagement. Parliament, ministries and parastatals do not compete but complement each other,” said Cde Wadyajena.
Formerly the Agricultural Bank of Zimbabwe (Agribank), AFC last year underwent rebranding and restructuring into the Land Bank to support the agricultural growth plan aimed at ensuring food security.
Some of the divisions it has are Land bank, commercial bank, insurance and leasing of farm equipment arm.
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