Online Reporter
Elita Chikwati
Agriculture News Editor
Farmers have been advised to present bankable projects in order to access funding for agricultural enterprises that include climate-proofing measures.
This was highlighted at the recent Agribusiness Public Lecture, organised by Zimpapers and its partners. The lecture was held under the theme: “Smart Harvest, Resilient Nation: Agriculture as Zimbabwe’s Climate and Economic Shield.”
Speaking at the event, CBZ Agro-Yield Head of Credit, Mr Wisdom Mukaro, said farming was a viable undertaking, but if farmers did not plan accordingly, they could encounter challenges or shortfalls.
He noted that banks were willing to fund farmers, but the main challenge was that producers were failing to convince financial institutions that they had the capacity to repay loans.
He cited cash flows and productivity records as crucial when farmers apply for loans.
“Funding for farmers is available, but producers must move beyond traditional input-based lending and present bankable, resilient projects to secure support.
“While banks have traditionally provided loans in the form of seed, fertiliser and chemicals, that model is no longer sustainable. We want to think beyond that; we want to support projects that bring long-term resilience.
“If we finance using yesterday’s financing models, we will continue to face challenges. But if we finance innovation and resilience, we will continue to build a more productive, food-secure and climate-resilient agricultural sector,” he said.
Mr Mukaro said farmers seeking loans must submit proposals detailing the purpose of the funding and provide financial records showing past performance.
“Financial institutions will want to know how farmers will pay back the money—what are the sources of your income? When applying for loans, we need to ensure we include all possible revenue streams in order to access funding,” he said.
He noted that because financial institutions use depositors’ money, they must be satisfied that borrowers will be able to repay.
He challenged agronomists and extension officers to guide farmers in drafting their proposals.
“Cash flows are very critical. I urge farmers to ensure those documents are reviewed, or to invest in finding an expert to assist.
“When drafting cash flows, even your timing should be perfect. Climate-smart agriculture takes a long time for farmers to repay. Farmers cannot pay back on a seasonal basis.
“This is why some farmers fail to repay their loans. There will be a mismatch in terms of loan repayment because you would have requested the wrong product,” he said.
“Climate resilience is about protecting productivity and increasing profitability. If given inputs, farmers need to have control over variables in order to contain costs. Farmers should invest in sustainable irrigation, such as solar-driven implements,” he added.
AMA Chief Executive, Ms Alice Mapfidza, said alternative financing models must also be explored.
“We talk of crowdfunding for other businesses, but we do not talk of crowdfunding for agriculture.
“I am calling on all of us to sit down and see who the investors are in Zimbabwe, because only when we invest in the produce that has comparative advantage can people easily be contracted, and can people see the value of agriculture,” she said.
