Agric draws US$30 million from IMF fund

Business Reporter
THE agriculture sector has benefited from about US$50 million drawn from the nearly US$1 billion which the country received as part of its allocation of the Special Drawing Rights from the International Monetary Fund.

Zimbabwe received the money last year in August which was a major boost that helped the country to finance a number of key projects. According to a Zimbabwe Country Report released by the international financing institution on Friday, the amount represented 5,2 percent of the total amount advanced to Zimbabwe.

IMF said US$30 million was used in the export revolving fund for agriculture targeting floriculture, blueberries and macadamia. These sectors are among the major contributors to agriculture export earnings in the country.

Another US$20 million was used in resuscitation of the smallholder farmer irrigation schemes. The Government has already announced that this year it was targeting to rehabilitate at least 6 100 hectares of irrigation schemes, mostly in communal areas. More than 2000 hectares will be done by July.

Apart from the direct support, IMF said another US$30 million from the same purse was used in agriculture industrial support.

The money was used to support industries that are directly linked to agriculture produce.

According to the break down, the cotton industrial sector received US$10 million as well as the leather sector.

IMF said pharmaceutical and other agro processing industries each received US$5 million.

Zimbabwe has over the years prioritised the growth of the agriculture sector as it aims to revive the sector seen as key in oiling its economy. To improve agriculture production, the IMF also noted that the country must develop, implement and scale-up climate smart agriculture solutions and strengthen the resilience of agricultural value chains and markets.

“This can benefit the country by facilitating the sustainable use of resources, such as water and soil in the long-term and reduce sensitivity of water, energy, waste, and biodiversity sector to climate change and variability. It will also reduce sensitivity to climate change by expanding the use of climate resilient breeds of crops and livestock and also increase adaptive capacity efficiency of agricultural production,” IMF said.

Zimbabwe received its allocation of Special Drawing Rights (SDRs) from the International Monetary Fund and apart from agriculture, the money was also spent on health, manufacturing, education and mining.