ARDA to bankroll $50m projects with private farmers

Business Reporter
THE Agriculture Rural and Development Authority said it will start with an initial $50 million capital to bankroll various farming projects in partnership with private farmers.

Under the arrangement, also known as ARDA graduation programme, the Government will facilitate mobilisation of funding from the market, with beneficiaries being responsible for the repayment of the lines of credit. Close to 650 A1 and A2 farmers have tendered their farms for potential partnerships with ARDA.

The graduation programme is targeting grain, oilseeds plantation and horticulture production. The programme is also targeting farmers involved in livestock and wildlife business.

ARDA chairman Mr Basil Nyabadza said in an interview that the programme was taking shape with negotiations with potential local and external funders progressing.

“We are looking to start with $50 million then we will build on that,” said Mr Nyabadza.

He said the programme was meant to overcome challenges related to financial resources and technical capacity the farmers were facing. Mr Nyabadza said the programme will prioritise farmers with potential irrigable land.

“The programme will also have a strong position on exports because we will be involved in horticulture,” he said.

Mr Nyabadza said the programme would fit well with Government’s approach on transforming Zimbabwe into an export-oriented economy to generate foreign currency.

In the past few years, ARDA has successfully revived its estates through public private partnerships. The public private partnerships are part of medium to long term measures by ARDA to get private firms involved in funding agricultural projects at the authorities’ 22 estates.

Last year, Mr Nyabadza said ARDA invested over $600 million in various projects since dollarisation.

Arda, a State-owned company owns 22 estates and some of its household estates include Katiyo Tea Estates Arda Transau Estates, which was allocated to former diamond mining companies operating in Marange to relocate families affected by their activities.

It also owns Chisumbanje Sugarcane Estates where it built a multi-million dollar ethanol plant, Green Fuel, its biggest investment since the adoption of multi-currency system.