Oliver Kazunga
Senior Business Reporter
THE African Export-Import Bank has unveiled a US$2 billion facility to finance agricultural production, irrigation, processing and exports across the continent.
Local businesses have been challenged to submit bankable projects to access funding aimed at boosting food security and expanding intra-African trade.
The facility was announced by Afreximbank Director of Trade Facilitation and Investment Promotion, Dr Gainmore Zanamwe, at the 19th Common Market for Eastern and Southern Africa (COMESA) Business Forum in Harare recently.
Although he did not disclose the specific package for Zimbabwean enterprises, Dr Zanamwe confirmed that the financial institution stood ready to deploy capital to support viable agricultural ventures capable of increasing production, strengthening value chains, and generating commercial returns.
“We have the platform to develop regional value chains. Therefore, I want to focus on agriculture, which is highly relevant now as we face the challenges of El Niño,” Dr Zanamwe stated.
“At Afreximbank, we have developed a US$2 billion facility that will support primary agriculture, production, processing, and export.
“The capital is available; what we require are bankable projects,” he added.
Dr Zanamwe encouraged Zimbabwean agribusinesses to utilise the facility, noting that the bank is seeking anchor farmers and large-scale agricultural projects capable of driving production, while creating downstream opportunities for smallholder farmers and other value chain participants.
Depending on scale and commercial viability, qualifying projects could attract investments ranging from US$100 million to US$500 million.
The proposed operational model intends for large-scale agricultural ventures to anchor integrated value chains, thereby enabling smaller producers, suppliers, and processors to participate in commercial agriculture.
For Zimbabwe, the facility presents a vital opportunity to enhance agricultural productivity, expand irrigation infrastructure, and increase the processing of locally produced commodities into higher-value products.
Agriculture remains a critical pillar of the domestic economy, supporting the livelihoods of over 60 per cent of the population and accounting for 23 percent of formal employment.
The sector also supplies 63 percent of the raw materials required by the manufacturing industry, contributes 30 per cent of export earnings, and accounts for approximately 15 percent of Gross Domestic Product (GDP).
Its extensive backward and forward linkages make the sector central to industrial development, employment creation, and broader economic growth.
Dr Zanamwe emphasised that investment in irrigation is particularly crucial as climate change escalates risks associated with erratic rainfall.
He noted that the facility could fund irrigation equipment and other capital interventions designed to improve the resilience of agricultural production.
Harnessing the country’s water resources and infrastructure for irrigation would assist in reducing dependence on rainfall, stabilising total output, and ensuring a more reliable supply of raw materials for agro-processing industries.
