Online Reporter
Edgar Vhera-Agriculture Specialist Writer
GOVERNMENT has announced a series of policies aimed at private sector investment in the agricultural value chain, with a targeted investment of US$1.42 billion.
The initiative seeks to secure a surplus of one million tonnes of maize by 2030.
This was stated by Vangelis Haritatos, Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development on Monday in Harare during Government engagements with a high-level Danish business delegation.
The delegation is in the country to explore investment opportunities in food systems, agriculture and clean energy sectors.
“The country prioritised increased agriculture production and productivity, building resilient food systems, improved food and nutrition security, increased agriculture exports, import substitution and job opportunities for youth.
“A total investment of US$1, 42 billion is required in maize, soyabean, sunflower, blueberry, broiler, egg, beef and dairy value chain,” he said.
The investment in the value chains will go towards working capital, farm equipment and irrigation.
Maize, soyabean and broiler value chains require about US$1 billion of the total investment chunk.
Government has the potential investment models to investors; Productive Social Investment Model, National Enhancement of Agriculture Productivity Scheme (NEAPS), Village Business Units (VBUs), Irrigation Development Alliance Model, Mechanisation Alliance Model, Vision 2030 Accelerator Model, ARDA Vision Incubator Accelerator Model, Infrastructure 6.0 Model, Agriculture Machinery and Equipment Leasing Model, Private Sector Investment Model and Hub and Spoke Model.
“Government has put in place investment incentives; rebate of duty for capital equipment import, security of tenure, foreigners allowed to own up to 100 percent of their investment and machinery and equipment allowable as part of equity investment into brown field projects.
“Investors are exempted from income tax for the first five years of operation in Special Economic Zones (SEZ), Built Own Operate and Transfer (BOOT) and Built Operate and Transfer (BOT) and 15 percent thereafter,” he said.
Dep Min Haritatos said value-added tax (VAT) was levied at 15 percent and farming inputs and equipment were subject to zero percent VAT.
Zimbabwe has 33. 3 million hectares of arable land and offer access to land through partnerships and joint ventures.
The country also has 10 600 dams with the potential to irrigate two million hectares and six distinct agro-ecological zones.
“Maize production is poised to grow from the current 2.3 to three million tonnes, allowing the country to have a surplus of one million tonnes for export by 2030.
Deputy Min Haritatos said a kilogramme of cigar could be sold at US$6 167 while locally a kilogramme of raw tobacco was fetching a price less than US$10.
The Danish delegation was led by Afrika Consultancy chief executive, Mrs Florence Charamba Christensen, a Zimbabwean entrepreneur based in Denmark for 26 years.
The delegation included seven world-class Danish companies: Cimbria — a global leader in post-harvest processing technologies, Engsko — an international supplier of grinding mills and milling plants, Poultry Processing Solutions — supplier of end-to-end equipment for poultry processing and Danish Impact Investment Fund (IFU) — which is seeking investments in sustainable food systems and healthcare.
Farmers’ Cooperative, a producer of potato starch and modified food starches and DanBred, one of the world’s leading pig breeding companies with 120 years of genetic expertise and Renewable Energy Developers, which is advancing clean energy solutions across Africa, also participated in the engagements.
