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Government, in partnership with Agribank, is mobilising US$50 million to lend to A2 farmers who have been struggling to access funding during the past years.
The money will be lent to farmers at concessionary rates of below nine percent.
Presenting the 2013/14 national budget recently, Finance Minister Patrick Chinamasa said out of the amount, US$10 million would be channelled towards livestock production.
“Government, in partnership with Agribank, is finalising modalities for mobilisation of US$50 million for lending to A2 farmers. The Food and Agriculture Organisation has also committed US$11,25 million in support of livestock production,” he said.
Farmers welcomed the move, but said the funds were not enough for meaningful production.
Zimbabwe Farmers Union vice president Mr Berean Mukwende said Zimbabwe was lagging behind in terms of agriculture financing.
“We all know that the agricultural sector can turnaround the economy in terms of foreign currency generation, employment and generation of raw materials for the manufacturing industry,” he said.
“The sector should be prioritised in terms of funding.”
Mr Mukwende said at least US$1 billion should be pumped into the Agribank as it is the land bank that should support farmers.
“There are over 100 000 A2 farmers and the money is not enough,” he said. “Government, the private sector and farmers should work together. Farmers should also be shareholders in the bank and invest money in the bank.” Mr Mukwende welcomed the low interest rates of below nine percent and said the current rates of between 20 and 50 percent were too high and not viable for agriculture.
Zimbabwe Commercial Farmers Union vice president Mr Johnson Mapira said there was need for financial support towards livestock production.
“The money could be used to buy pedigree breed through artificial insemination to improve the quality of beef,” he said.
Agricultural economist Mr Midway Bhunu said Government should provide the rightful environment to oversee the implementation of agriculture policies and projects.
“There is need for all stakeholders to work together,” he said.
Online Reporter