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Business Reporter
The Government has said agro-focused businesses should secure at least 40 percent of their raw material requirements through value chain financing.
This comes as a number of companies are already securing their raw material requirements through local contract farming schemes.
These include National Foods, Delta Corporation, Hippo Valley and British American Tobacco Zimbabwe, among others.
Lands, Agriculture, Water and Rural Development Minister Dr Anxious Masuka said the agriculture sector transformation under the Agriculture and Food Systems Transformation Strategy (2020-2025) also entails developing a robust sector supported by private sector investments.
“We are looking forward to seeing many agro-based conglomerates and private sector growth in financing agriculture.
“The businesses should ensure 40 percent of raw materials requirement is secured through the value chain financing,” he said in a speech at the Innscor Africa Limited’s Victoria Falls Stock Exchange (VFEX) listing ceremony last Friday.
Minister Masuka said with Zimbabwe’s economy being agro-based, value chain investments will position the sector to play an important role in poverty alleviation and the broader Vision 2030.
He said conglomerate Innscor was already procuring most of its raw material requirements through local contract farming schemes, having recently supported the planting of 13 000 hectares of wheat to produce 78 000 metric tonnes in the recently concluded and very successful winter wheat season.
He said the group had followed this up with further support for the current summer maize and soya bean season and expects to have 34 000 hectares under summer-winter seasonal rotation.
“Through these investments, Innscor is contributing towards the achievement of not only Sustainable Development Goals (SDG) but also the National Development Strategy 1 (NDS1), particularly the imminent problem of global hunger,” he said.
The minister noted that Innscor required at least 620 000 tonnes of soya and wheat per annum, and already 20 percent of their soya requirements is coming through the value chain while 32 percent of wheat requirement comes from their contract farming.
The government is targeting to spend over $46 billion on various programmes that are meant to increase production and productivity in agriculture.
Under the transformation strategy, the agriculture sector is envisaged to grow to US$8,2 billion by 2025.
According to Minister Masuka, the target has already been surpassed following a successful 2021/22 agricultural season.
Online Reporter