adminCathrine Biswick Business Reporter
THE Bankers’ Association of Zimbabwe has urged Government to facilitate an integrative approach to ensure a conducive policy environment that enables agricultural growth. “There is a need for an integrated development approach where the Government should facilitate and ensure a conducive policy environment which enables agricultural growth. Other stakeholders in the financial services sector should also provide the requisite resources,” said BAZ chief executive Mr Sij Biyam.
Mr Biyam was speaking at the ongoing Harare Agricultural Show where farmers’ representatives shared knowledge on farming experiences and ideas on farming finance.
He said the financing of agriculture could be done through agro-bills (the issuance of paper).
“The introduction of the paper will increase liquidity in the economy but at the same time allowing the agricultural sector to get resources and Government guarantees to enable the private sector institutions that have at their disposal a huge amount of investable funds to support agriculture,” he said.
He said Government, in partnership with farmer’s organisations, should set up the consolidated agriculture loan funds.
“The consolidated agriculture loan fund that the Government and farmers’ organisations should cover a certain percentage of credit risks of financial institutions that provide loans to small agricultural borrowers and small to medium enterprises. These will also serve as collateral for clients who cannot provide the traditional collateral requirement,” he said.
The agriculture sector in Zimbabwe provides employment and income for over 60 percent of the population and supplied 60 percent of the raw materials required by the industrial sector and 40 percent of total export earnings in Zimbabwe.
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