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Business Reporter
The Agricultural Marketing Authority of Zimbabwe is looking at raising $55 million from the private sector to purchase about 250 000 metric tonnes of commercial maize this season. Commercial maize is rain meant to generate funds for the Grain Marketing Board through projects like grain milling among others.
AMA will also raise an additional $100 million to capacitate the Grain Marketing Board to purchase maize and small grains.
The authority has applied for permission from the Ministry of Agriculture, Mechanisation and Irrigation Development, which is expected to issue a borrowing certificate if the authority’s application is approved.
Once the borrowing certificate has been approved Government will act as guarantor for the loans. Giving oral evidence before the Parliamentary Portfolio Committee on Lands and Agriculture yesterday, AMA chief executive Mr Roki Mutenha said the authority intends to approach local and foreign financial institutions to raise funds for the purchase of grain. “We applied for a borrowing certificate to secure funding to capacitate GMB in its quest to purchase maize grain,” said Mr Mutenha.
The Reserve Bank of Zimbabwe has advised AMA to approach the African Development Bank, South Africa Investment and African Export and Import Bank to source for the funds.
Zimbabwe requires about 2 million metric tonnes of maize annually for human consumption and stock feeds production.
Last year AMA borrowed $23 million for the purchase of maize.
Mr Mutenha said: “our job is to identify market needs and then make recommendations through Agritex. Therefore we saw that GMB requires capital to be competitive on the market.”
However, Mr Mutenha could not reveal the maize prices for this year saying the announcement would be done by the parent ministry.
Online Reporter