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Edgar Vhera Agriculture Specialist Writer
AFC Holdings is ready to support the Government initiatives to continuing boosting harvests into greater surpluses and export crops by extending financial support to farmers through the Land and Development Bank of Zimbabwe in the forthcoming summer cropping season.
AFC Holdings chief executive Mr Francis Macheka during the Annual National Agribusiness Conference (ANAC) yesterday at the 113th Zimbabwe Agricultural Show that was jointly funded by the National Economic Consultative Forum and ZAS.
Mr Macheka said: “We are pleased to note the progression we have made into becoming a one-stop-shop for development finance, commercial banking, insurance and leasing with special focus on agriculture development through our four strategic business units.
“For the upcoming season we are more than ready to support smallholder, medium and large-scale farmers, contracting entities, irrigation schemes and various other partners in the agricultural value chain.”
In tandem with the theme: ‘Sustained growth, climate and technology adaptation productivity and linkages’, AFC has upped crop and livestock insurance under its insurance branch.
“Since its inception in the 2021/22 season, AFC Insurance has provided crop insurance coverage for more than 50 000 hectares of both winter and summer crops and is geared up to provide cover for more than 100 000ha in the 2023/24 summer cropping season,” Mr Macheka said.
The Land Bank had funded approximately 8 700ha of summer crops to the tune of $900 million and contributed about 44 700 tonnes to national grain production in its maiden 2021/22 season. They doubled this feat in the 2022/2023 summer season and financed about 13 710ha.
For the current winter wheat season AFC financed about 17 400ha and is projecting over 78 000 tonnes of wheat from that land, a figure nearly twice the hectarage financed in the first year of operation.
For the 2023/24 summer cropping season, AFC is targeting to finance at least 25 000ha of maize valued at $137,5 billion with projected harvests of 150 000 tonnes of grain.
Mr Macheka said AFC Land Bank had also signed a US$8,35 million contract for a seed-revolving facility with the African Development Bank, through the Food and Agriculture Organisation of the United Nations.
This fund will play a significant role towards availing financing during the summer cropping season, he said.
“Farmers have started coming to our countrywide branch networks to initiate the process of accessing this funding and we are pleased to note a significant number of our now ‘regular’ farmers have come through. Support to women and youths that was about 12 percent of total loans in 2021/22 increased to 16 percent in 2022/23. Our aim is to ensure we remain women and youth friendly to drive these ratios upwards,” Mr Macheka said.
He revealed that they had signed a US$24 million Belarus tractor facility with the Ministry of Finance and Economic Development for over 580 tractors to be accessed by farmers through financing facility.
“The facility has received an overwhelming interest with over 160 applications received to date and is playing a key role in driving the access to mechanisation services throughout the summer cropping season,” said Macheka.
AFC Leasing Company has already covered significant ground in terms of land preparation for the summer season.
“We have about 22 AFC Leasing’s cluster centres, which are spread all over the country to offer convenience to our farming communities. We have over 610 tractors and 60 combine harvesters available to all farmers this summer season,” he said.
AFC Holdings was established in April 2021 following Government’s resolution to transform Agribank into a one-stop-shop for agriculture financing.
The Government’s state of preparedness report for the 2023/24 summer cropping season dated May 17 indicates that the National Enhanced Agriculture Productivity Scheme would be funded through AFC and Commercial Bank of Zimbabwe (CBZ) backed by Government performance guarantees.
“AFC will fund production of maize on 25 000ha at an expected yield of six tonnes per hectare and targeting 150 000 tonnes while for soya beans, 3 000ha will be funded at an average of three tonnes per hectare to harvest 9 000 tonnes. For traditional grains production on 2 000ha will be financed to produce 6 000 tonnes with sunflower on 5 000ha to realise 10 000 tonnes,” said the report.
The report also showed that AFC Leasing Company of Zimbabwe had a fleet of 630 tractors and 54 combine harvesters that can be accessed by farmers for the purpose this summer.
Online Reporter