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THE Zimbabwe Agricultural Development Trust (ZADT) has so far disbursed more than $11,5 million to 109 intermediary agricultural value chain actors under its Create fund, an official said on Monday. A government and private sector initiative, the revolving fund which was launched last year seeks to address liquidity challenges through provision of soft capital to agriculture value chain actors with strong links to small holder farmers.
Create stands for Credit for Agriculture Trade and Expansion.
Targeted beneficiaries include agro-dealers namely community-based retailers of agricultural inputs such as fertilisers and seed, small to medium scale processors involved in buying and value addition of agricultural produce from smallholder farmers as well as contracting companies.
The Create fund also seeks to increase profitability to smallholder farmers who do not have easy access to agricultural inputs.
The fund is channelled through three financial institutions FBC, NMB and TN Bank and is mainly meant to assist small scale farmers to access loans to boost productivity.
ZADT chairperson Ms Soneni Ncube said the fund was currently worth $15 million with plans afoot to grow it to $30 million.
“At least $11,5 million is already loaned out to 109 intermediary agricultural value chain actors benefiting 25 000 small holder producers at 11,5 percent per annum,” she said.
Ms Ncube said agricultural processors, traders, contracting companies, wholesalers, transporters and agro dealers had benefited from the fund so far.
With two thirds of the Zimbabwean population living in rural areas, resuscitation of the agricultural sector is vital to improving the lives of ordinary people.
Analysts contend that the Create funds would assist in boosting agricultural production and also aid in reducing food imports that have flooded the Zimbabwean markets. – New Ziana
Online Reporter