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Nelson Gahadza Business Reporter
CBZ Holdings says the Government should wean off the CBZ Agro-Yield initiative to allow the bank to drive the initiative as it has invested heavily in technology that tracks loans and activity on the farms.
The CBZ Agro-Yield is a CBZ Holdings agricultural financing initiative in partnership with the Government for financing maize and soyabean launched for the 2019/20 farming season and beyond.
Blessing Mudavanhu, CBZ Holdings group chief executive, said the motivation to set up the agro-yield was to address deficiencies of the Command Agriculture programme which had all kinds of issues.
“Previously, it was 100 percent Government funding, but we have a Government guarantee, so if this is truly to be private, we need to be weaned off by the Government so that it can be done by our own feet,” he said.
He pointed out that the group had invested in technologies that can monitor closely what would be happening on the farms to ensure there are no issues of side marketing.
According to Mudavanhu, the Government came to partner CBZ to create a platform in which public sector and private sector funding can be attracted to the agriculture sector.
He said the money did belong to CBZ Agro-yield, but the agro-yield initiative was simply a platform to allow an efficient conduit for private sector and public sector funding to be invested.
The gist of the programme was also to procure in bulk and suppliers are also participants of this network.
“So what it does is to reduce the cost to produce by farmers.
“So as things stand, with Government guarantee, and Government support and the technology deployed and what we are putting in place, we will be able to run on our feet,” he said.
Sable Chemicals, the country’s sole producer of ammonium nitrate received $335 million out of nearly $1,5 billion that was targeted for the period between April and August 2021 under a contract it entered with CBZ Agro Yield for the supply of top dressing fertiliser.
The Kwekwe-based AN producer entered into a $3 billion deal with CBZ Agro Yield to supply 60 000 tonnes of AN between April 2021 and February 2022.
Targeted production between April and August 2021 was 30 000 tonnes, but CBZ Agro Yield only released $335 million, significantly less than $1,45 billion needed for the period, sources said.
The funding need for the period September 2021 and February 2022 was $1,2 billion (US$13,7 million) required for importation of raw material and $400 million to meet local costs.
Before the onset of rains, Government distributes seed and other agricultural services through programmes such as Pfumvudza/Intwasa conservation scheme, Presidential Input Scheme, National Enhanced Crop Productivity Scheme ( previouslyknown as Command Agriculture), more irrigation, the Livestock Growth Plan and the farm mechanization programme, which all contribute to better harvests.
The CBZ Chairman, Marc Holtznman said the initiative ensured that no one borrowed multiple loans on the same property as the group tracked everything using IT systems in place.
He said this year’s farming season was buoyed by a positive rain forecast and growth achieved in the prior season.
“With support from the Government and CBZ, the country became a net exporter of maize for the first time in 7 years,” he said.
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