TimothyBusiness Writer
The first batch of the Agricultural Marketing Authority of Zimbabwe (AMA)’s $20 billion agro-bill is ready for subscription after receiving all the requisite regulatory approvals, the authority has said.
For the first batch, AMA says it intends to raise $5 billion.
The agro-bill is aimed at raising money to fund the purchase of maize this season.
Said AMA: “The first batch of AMA $20 billion agro bill to finance purchase of maize for 2020/21 buying season is now available for subscription. Investors can apply for a minimum of $1 million.”
The agro – bill is a tap issue with an interest rate of 21 percent per annum and a 365-day tenor.
The bills will be issued through CBZ.
AMA was set up by Government primarily to promote agricultural production of strategic crops such as tobacco, cotton, sugar, soya beans, maize and barley.
Although tobacco has successfully managed to attract private funding, the same story cannot be said on other crops such as cotton that struggle to get private funders.
Given the centrality of maize to national food security, Government has remained the major financier and buyer of the commodity through the Grain Marketing Board with AMA facilitating resource mobilisation from the market.
Zimbabwe is expecting to harvest 3 million tonnes of cereals during the 2020/21 summer cropping season, the highest yield in 20 years, the Second Round Crop and Livestock Assessment report revealed recently.
A surplus of over 820 000 tonnes of cereals is expected this marketing season, the highest yield since the 2000/01 farming season.
The assessment report has revealed that cereal production is estimated at 3 075 538 tonnes against a national cereal requirement of 1 797 435 tonnes for human consumption and 450 000 tonnes for livestock.
According to the final assessment report, estimated maize production stands at 2 717 171 tonnes, which is a significant rise from the 907 628 tonnes produced in the 2019/2020 season.
Bongani Ndlovu