Business Reporter
FARMERS must prepare rigorous operational and financial planning before approaching financial institutions to secure bank loans and build sustainable enterprises, a banking expert has said.
Speaking at the Zimbabwe Agriculture Climate Resilience Summit 2026, hosted by Zimpapers in Harare last week, CBZ Bank credit representative Mr Livingstone Banga said modern agricultural techniques, rising input costs, and climate change require a shift in how farmers approach funding.
“We therefore need to start looking at farming differently — not simply as a way of producing goods, but we need to take farming as a business,” Mr Banga said.
“Financing preparedness starts long before the loan is applied.”
Agriculture contributed 11,1 percent to Zimbabwe’s Gross Domestic Product during the 2020–2025 period and grew by 27,9 percent, underscoring its role in economic performance, food security, and rural livelihoods.
However, global fuel and fertiliser price surges and the anticipated El Niño-induced drought risks have increased production uncertainties across the sector.
Mr Banga urged farmers to address five critical operational questions before submitting funding proposals to commercial banks.
He said farmers must explicitly define the commodity to be produced and ensure loan repayments originate from that specific venture, which they borrowed for.
Proposals must clearly detail the targeted hectarage and expected crop yield to align funding requests with actual capacity.
Applicants must prepare comprehensive cost profiles covering seeds, fertiliser, chemicals, labour, fuel, and mechanisation, supported by accurate cash flow projections.
Mt Banga said farmers must establish off-taker arrangements, agree on selling prices, and determine payment timelines to match facility maturity schedules.
Producers must evaluate potential price drops and input cost increases to ensure the project remains viable at breakeven levels.
Mr Banga advised farmers to construct realistic seasonal budgets rather than inflating expenditure figures to secure larger credit limits.
“A farmer who is organised, has good record-keeping, understands their numbers, has a clear production plan and knows their market is better positioned to be a successful farmer,” Mr Banga said.
He warned farmers against utilising agricultural loans for domestic personal expenditure, advising them to access salary-linked facilities for non-farm consumption instead.
“Don’t borrow a farming loan for consumption,” Mr Banga said.
“If you want to have consumption money, come to us; we also give you personal loans that can be tied to your personal salary so that at the end of the day, you don’t suffer any challenges in terms of how to pay those loans.”
CBZ reaffirmed its continued support for agricultural production and mechanisation through various financing schemes, including seasonal input loans, working capital facilities, asset financing for machinery, and long-term farm title mortgages extending up to 20 years.
