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Business Reporter
Zimbabwe and the OPEC Fund for International Development have signed a $15 million co-funding loan agreement for Smallholder Irrigation Revitalisation Projects.
The loan agreement was signed between Minister Chinamasa and the Director-General for the Fund Suleiman Al-Herbish in Vienna, Austria. In a statement, Finance and Economic Development Minister Patrick Chinamasa said total project cost is estimated at $51,68 million.
The OFID Loan Facility of $15 million is over and above the $25,5 million grant that has already been availed by the International Fund for Agricultural Development (IFAD). Zimbabwe and beneficiaries will contribute $7,9 million and $3,28 million respectively towards the project.
“The $15 million loan facility is therefore a top-up to meet the project cost of $51,68 million ,” said Minister Chinamasa.
He said this will go a long way in improving co-operation with international financiers. The project will directly benefit at least 15 000 households in existing irrigation schemes and 12 500 households in adjacent rain-fed areas, covering a total 8 000 hectares.
Employment opportunities for 2 000 youths and 500 extension and technical service providers will be created. The project will support sustainable development in Masvingo, Manicaland and Matabeleland South Provinces.
The Smallholder Irrigation Revitalisation Programme (SIRP) which will run for seven years, is targeting the rehabilitation of irrigation schemes, train farmers on climate smart agriculture and improve access for agriculture products.
The overall goal of the SIRP is that rural households achieve food and nutrition security and are resilient to climate change effects and economic shocks in the programme districts.
The programme objective is that rural households sustainably increase their income in SIRP supported schemes and adjacent rain fed areas.
This will be achieved by rehabilitating and/or expanding targeted irrigation schemes and supporting these and surrounding rain fed areas to increase productivity, production and income, as well as improving access to agricultural markets and financial services.
It is expected that the programme will result in an increase in production and productivity of selected commodities, an increase of annual household income, increased market integration and a smallholder agricultural production system that is better adapted to climate change.
Online Reporter