Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
AFC Land and Development Bank financed 20 245 hectares under the 2025/26 summer cropping programme and supported a further 14 150 hectares under the 2026 winter programme, underscoring its growing contribution to agricultural production and national food security as the institution continues to advance its mandate of providing sustainable agricultural financing and promoting financial inclusion.
During the six months to June 2026, the bank financed 20 245 hectares under the 2025/26 summer cropping programme and supported a further 14 150 hectares under the 2026 winter programme, underscoring its contribution to agricultural production and national food security.
In total, 8 786 beneficiaries were supported, positively impacting approximately 162 500 livelihoods, with women accounting for 35 percent of beneficiaries while youth participation stood at five percent.
The performance came as the bank posted a profit after tax of ZiG960 900 in the period under review, compared with a loss of ZiG4.05 million recorded during the corresponding period last year.
Gross income, comprising interest and non-interest income, increased by 25 percent to ZiG95.44 million, while total revenue after funding costs rose 15 percent to ZiG75.13 million.
“AFC Land & Development Bank recorded a profit after tax of ZiG960 900 for the six months ended 30 June 2026, compared to a loss of ZiG4.05 million in the corresponding period in 2025.
“Gross income, comprising interest and non-interest income, increased by 25 percent to ZiG95.44 million, while total revenue after funding costs increased by 15 percent to ZiG75.13 million,” the bank said.
“However, the cost of funding and the need to achieve greater business scale remain key strategic considerations in attaining sustainable profitability.”
Financing agriculture remains critical to Zimbabwe’s economic development, given the sector’s central role in food production, employment, rural livelihoods and the supply of raw materials to industry. Increased lending by financial institutions enables farmers to access seed, fertiliser, chemicals, irrigation equipment and mechanisation, helping to raise productivity and build resilience against climate-related shocks.
The institution also strengthened its balance sheet, with total assets rising 18 percent from ZiG954.14 million at 31 December 2025 to ZiG1.12 billion at 30 June 2026.
Gross loans and advances increased to ZiG654.36 million, reflecting continued expansion of financing to the productive sectors.
Equity closed the period at ZiG396.25 million, although the bank said additional capital would be required to enable it to operate at the scale necessary to fully deliver its developmental mandate.
During the period, AFC Land Bank also facilitated the delivery of 329 mechanisation units, supporting efforts to improve productivity, efficiency and resilience across the agricultural sector.
“The bank financed 20 245 hectares under the 2025/26 summer cropping programme and supported a further 14 150 hectares under the 2026 winter programme. In total, 8 786 beneficiaries were supported, positively impacting approximately 162 500 livelihoods. Women accounted for 35 percent of beneficiaries, while youth participation stood at 5 percent.”
“The bank also facilitated the delivery of 329 mechanisation units, contributing to improved agricultural productivity, efficiency and resilience.”
Another major milestone was the successful conclusion of the ZiG207 million Zimbabwe Emergency Food Production Programme, supported by the African Development Bank and the Food and Agriculture Organization of the United Nations.
The programme supported more than 17 000 farmers by widening access to agricultural inputs and financing.
“The programme supported over 17 000 farmers, significantly expanding access to agricultural inputs and financing. Importantly, the funding has transitioned into a revolving mechanism, enabling the bank to continue extending support to additional farmers beyond the initial programme period.”
“This represents a significant milestone in the bank’s financial inclusion agenda and reinforces its role as a key institution in supporting sustainable agricultural production and national food security.”
The bank said asset quality improved during the period, supported by stronger portfolio monitoring, enhanced recovery initiatives and proactive engagement with borrowers.
Going forward, the institution intends to deepen its credit-risk management framework while expanding financing towards irrigation, climate-smart agriculture and higher-value activities across the agricultural value chain.
“These strategic interventions are expected to enhance portfolio resilience, improve repayment performance and progressively reduce exposure to climate-related and primary-production risks,” the bank said.
AFC Land Bank said it remained focused on becoming a financially sustainable and development-oriented institution capable of delivering lasting impact across Zimbabwe’s agricultural sector.
“The bank is strategically positioned to support farmers and agribusinesses, promote financial inclusion, enhance agricultural productivity and contribute to national food security.”
At group level, the performance was even stronger, with the group recording a profit before tax of ZiG17.9 million, a significant turnaround from a half-year loss of ZiG16.9 million in 2025.
“The group delivered a profit before tax of ZiG17.9 million, a significant turnaround from the prior year’s half-year loss of ZiG16.9 million, reflective of improvement in the quality of earnings and stronger contribution from core business activities.”
Profit after tax stood at ZiG25.6 million, compared with a loss of ZiG7.9 million in June 2025, following a net tax credit of ZiG7.7 million.
Net interest income increased 133 percent year-on-year to ZiG273.5 million from ZiG117.5 million, driven by expansion of the loan book and improved asset yields.
Non-interest income remained relatively stable at ZiG421.8 million, compared with ZiG444.1 million in the prior period.
Operating expenses increased 12 percent to ZiG616.7 million, mainly due to inflationary pressures, including a seven percent cost-of-living adjustment awarded to non-managerial staff, alongside business expansion costs.
“However, cost-containment initiatives remain in place to align expenses with revenue growth.”
The group’s total assets increased seven percent to ZiG7.4 billion, while loans and advances grew 18 percent to ZiG2.3 billion.
Customer deposits rose nine percent to ZiG2.5 billion, while lines of credit increased 18 percent to ZiG1.1 billion, strengthening the group’s capacity to scale lending.
“Growth in deposits reflects enhanced market confidence and effective mobilisation strategies. Lines of credit grew by 18% to ZiG1.1 billion (December 2025: ZiG0.9 billion), strengthening funding capacity, enabling the group to scale lending operations and support future growth.”
“Total shareholders’ equity remained strong at ZiG2.9 billion. This reflects the ongoing strength of the group’s capital base, supported by shareholder backing, and provides a solid foundation for future expansion.”
