Chronicle Editor
Patrick Chitumba, Midlands Bureau Chief
GOVERNMENT is establishing a Collateral Registry for movable assets to ensure that farmers get funding from banks, Vice President Constantino Chiwenga has said.
In a speech read on his behalf by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development Dr Anxious Masuka while officially opening the 81st Zimbabwe Farmers Union (ZFU) annual congress at Village Lodge in Gweru yesterday, VP Chiwenga said farmers should register their moveable assets to be used as collateral.
“To address the collateral security constraint and improve access to finance, especially farmers and the under-banked groups, the Government through the Reserve Bank has taken the initiative to establish a Collateral Registry for movable assets to expand the range of qualifying collateral acceptable by banks.
“Through the registry, which will be publicly available, borrowers can prove their creditworthiness,” he said.
Additionally, VP Chiwenga said, Government has now re-established the Agricultural Finance Corporation (AFC) which is poised to grow the agricultural sector.
He said Government has put in place various schemes and financing mechanisms to address access to agricultural finance.
VP Chiwenga said during the 2020/21 season, Government launched a number of supportive programmes such as the Presidential Climate –Proofed Pfumvudza/Intwasa, National Enhanced Agriculture Productivity Scheme through CBZ Agro Yield.
“Yesterday (Thursday) President Mnangagwa launched the Presidential Climate Proofed Cotton Pfumvudza/Intwasa Scheme.
“The AFC will also complement CBZ Agro Yield by financing over 60 000ha focusing on A1 and smallholder farmers,” said VP Chiwenga.
“As a result of the above supportive measures coupled with a good rainy season, the crop and livestock assessment report indicates that there was an overall 23 percent increase in area planted for crops to 3,5 million ha in the 2020/21 season.”
He said the maize output for the 2020/21 cropping season was a record 2,7 million tonnes which is a 193,1 percent up from 0,9 million tonnes produced in the 2019/20 season.
The Vice President said Government designated the Grain Marketing Board as the sole buyer of grain adding that out of the grain stock produced, it is anticipated that 1,1 million tonnes of grain valued at $39,2 billion will be delivered to GMB by farmers countrywide.
“Government is paying for the deliveries timeously so that the farmers can go back to the fields,” he said.
Turning to cotton, VP Chiwenga said benefitting from timeous distribution of inputs and better rainfalls, the area planted for the white gold increased by 37,5 percent to 239 619ha in the 2020/21 season from 174 212ha as farmers responded well to the Government incentive aimed at resuscitating the cotton to clothing value chain.
“Some 132 000 tonnes of seed cotton have been delivered to date, a 59 percent increase from 38 000 tonnes delivered some time last year.
“The crop output benefitted from continued support of cotton farming. The final producer prices are also determined through a consultative process that also includes farmers through their farmer’s unions,” he said.
“Our economy is agro-based and agriculture is considered a strategic economic sector. The sector will continue to enjoy preferential Government support. I call upon you farmers to support the Government in accomplishing the shared vision 2030.”
He said Government has promulgated Statutory Instrument (SI) 184 of 2021, operationalising the much-awaited agriculture commodities exchange- the Zimbabwe Mercantile Exchange (ZMX).
“The exchange is an initiative of both Government and private players with the support of development partners which has already been launched,” said VP Chiwenga.
ZFU president Mr Abdul Nyathi said farming is now a business which is an economic enabler.
He said there is also the need to transform the market place so that it becomes favourable for the farmer who works on the land.
“As farmers, we are behind the Government as we talk about production and productivity on the land as we make this a business. We also want to be involved in issues with pricing so that we benefit more from farming. Right now, we are just spectators who don’t determine pricing and terms of payments,” he said.
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