Chronicle Editor
Bruce Ndlovu, Sunday News Reporter
CABINET has approved the restructuring of Agribank, with an inter-ministerial task team set to oversee its reconfiguration into the Land Bank set to be appointed soon.
The task team will comprise the Ministries of Finance and Economic Development, Lands, Agriculture, Water and Rural Resettlement, Industry and Commerce, the Attorney-General’s Office and the Reserve Bank of Zimbabwe.
Speaking at a post cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa said Government had ratified the reorganisation of Agribank after the realisation that it was a crucial aspect of Vision 2030.
“Cabinet considered and approved the proposed remodelling of Agribank (Pvt) Limited. This is in view of the fact that agriculture, among other productive sectors, is crucial in realising Vision 2030 owing to its contribution to the economy and to national security. Cabinet noted that the establishment of vibrant and diversified rural financial services which are underwritten by a Land Bank or its equivalent will be an important step which the country should take in order to move towards upper middle income status,” she said.
Minister Mutsvangwa noted that Land Bank would lend support to A1, A2 and small scale commercial farmers who, holding up to 95 percent of the productive land and owning over 90 percent of the national livestock herd, were still snubbed by financial institutions.
“Cabinet was informed that the remodelling of Agribank Pvt Limited as a dedicated Land Bank is expected to deliver a number of specific outputs. It will strengthen and diversify existing agricultural and rural financial services for sustainable agrarian reform for accelerated development. The bank will also provide investment support for A1, A2 and small scale commercial farmers (matenganyika) who have not been supported by commercial banks.
It will link currently under-utilised land to structured markets and established value chains supplying factories, supermarkets and export markets and also provide working capital for the construction of agricultural infrastructure as well as for value addition and beneficiation enterprises,” she said.
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