admin
Kudzai Chikiwa, Business Reporter
YOUNG farmers in Bulawayo have hailed the Empower Bank for extending its loan facility to them saying traditionally other banks marginalise young farmers despite having viable projects proposals.
The micro finance institution officially opened its Bulawayo branch recently and pledged a $50 000 non-collateral loan package to local entrepreneurs with viable project proposals on a first come and first serve basis.
In an interview, Emmandson Ndlovu, a young farmer who runs Mangostu Range Private Limited in Esigodini said he secured an RTGS $29 000 loan to run his livestock feed lot business.
“Securing this loan to me is a miracle because knowing our banks in Zimbabwe, it is rare for young farmers to be considered. We are sidelined as first preference is given to small scale entrepreneurs whose businesses have quick returns. I am so grateful that Empower Bank is taking a different approach altogether,” he said.
The youthful farmer who specialises in horticulture and animal husbandry, said for the four months he has connected with the Empower Bank, he has witnessed a complete change in his farming business.
“I have a strong belief that through this loan facility many young farmers are going to be transformed. Zimbabwe is full of potential entrepreneurs but sometimes their vision dies because of lack of funding. We should therefore take advantage of such institutions that are willing to support us, we have to take advantage of this,” he said.
Mr Ndlovu said by financing farmers, Empower Bank was at the centre of economic growth since agriculture is one of the key economic drivers.
“Agriculture occupies a central place in the Zimbabwean economy. Some even place the sector as the backbone, which underpins the economic, social and political lives of the majority of the people of Zimbabwe. Agriculture contributes significantly to the Gross Domestic Product (GDP),” he said.
Mr Ndlovu said after securing the loan, he managed to increase his labour force from three to five permanent employees while he offers part time jobs to many locals in Esigodini.
“Empower Bank is playing a critical role in employment creation. Now l can count that at least two families are now being fed and many locals are also benefiting.
“Most people derive their livelihood from the agricultural sector. Agriculture-related employment supports a third of the formal labour force,” he said.
Mr Ndlovu said that agriculture impacts on other economic sectors such as manufacturing industries as it provides the bulk of the raw materials.
He said by supporting agriculture, the bank was playing a big role in the revival of industries.
Mr Ndlovu commended the bank for its flexible loan repayment system and urged other farmers to take advantage of the loan facility to grow their farming business.
“My loan tenure is 24 months, which is flexible to me and the bank charges five per cent interest, which to me is a great favour. I encourage some young farmers out there to come and utilise this opportunity,” he said.
Mr Ndlovu said the Empower Bank should intensify its efforts to market itself to young farmers so that they benefit from its loans.
“Farmers out there are still sceptical about loan facilities because they think loans are meant for other businesses hence the need to educate them,” he said.
— @tamary98.
Online Reporter