Online Reporter
Business Writer
THE Infrastructure and Development Bank of Zimbabwe (IDBZ) is considering raising US$50 million to support the horticulture sector, with a particular focus on smallholder farmers and small enterprises.
As part of its proactive approach, the bank has developed and submitted a concept note for the Horticulture Investment Fund for Enhanced Climate Resilience (HIFECR) to the Green Climate Fund (GCF), seeking climate finance to bolster the sector.
This strategic initiative reflects IDBZ’s commitment to addressing climate change and promoting sustainable development by enhancing the resilience of horticultural projects.
These efforts are expected to contribute significantly to environmental sustainability and economic growth. The GCF, established under the United Nations Framework Convention on Climate Change (UNFCCC), is the world’s largest dedicated climate fund and plays a key role in the Paris Agreement by helping developing countries finance projects that reduce greenhouse gas emissions and improve climate adaptation.
The move comes as the Horticulture Development Council (HDC) projects that the sector’s annual export value could grow to US$2 billion in the coming years, given the untapped potential of local production.
At present, the sector generates around US$80 million annually in export revenue.
According to HDC, this ambitious target will be achieved through the active participation of key stakeholders, including local financiers and member organisations such as the Citrus Growers Association, Avocado Growers Association, and Berry Growers Association.
These groups are expected to play a pivotal role in empowering new exporters to exceed expectations and expand beyond the capabilities of larger producers.
As part of its expansion strategy, HDC is working to double citrus production from 4 000 hectares to 8 000 hectares, an investment projected to yield at least US$84 million annually in export revenue.
Blueberry production is also set to increase from 600 hectares to 1 500 hectares, with an estimated annual yield of US$112 million.
Macadamia production is expected to grow from 10 000 hectares to 13 000 hectares, while tea production will rise from 5 300 hectares to 6 300 hectares.
Further targets include increasing apple production from 500 hectares to 1 500 hectares, avocado production from 2 800 hectares to 5 500 hectares, and banana cultivation from 8 000 hectares to 14 000 hectares.
Coffee production is planned to expand from 680 hectares to 1 500 hectares, summer flower production from 100 hectares to 600 hectares, and rose cultivation from 30 hectares to 330 hectares.
These ambitious expansion plans underscore the council’s commitment to growing Zimbabwe’s horticultural sector and boosting agricultural output, despite the substantial capital required.
Zimbabwean horticulture is broadly categorised into three main groups.
The first includes annual crops that mature within six to 12 months, such as peas, chillies, peppers, garlic, tomatoes, cucurbits, potatoes, and brassicas.
The second group comprises perennial crops, which take three to five years to mature, including blueberries, passion fruit, kiwi fruit, and various flowers.
The third category consists of plantation crops, which require seven years or more to mature.
These include citrus, avocado, macadamia, pecan, and coffee plantations, all of which demand careful planning and long-term investment.
“In its efforts to mobilise climate finance, the bank has developed and submitted a Concept Note on the Horticulture Investment Fund for Enhanced Climate Resilience (HIFECR) to the Green Climate Fund (GCF). The proposal, which is now under GCF review, involves the establishment of a US$50 million fund to provide financing to the horticulture sector, primarily targeting smallholder farmers and small enterprises,” said IDBZ outgoing chief executive Mr Zondo Sakala in his half-year financial report to June 2025.
He added that the bank is actively developing additional concept notes for submission to the GCF, focusing on low-emission transportation and renewable energy solutions.
The GCF receives pledges from developed countries, which have historically contributed the majority of greenhouse gas emissions. It also accepts contributions from developing countries, private entities, and alternative sources.
Funds are channelled through a network of accredited entities, including national, regional, and international institutions such as multilateral development banks, UN agencies, and civil society organisations.
Climate Change Scientist in the Ministry of Environment, Climate and Wildlife, Ms Munashe Mukonoweshuro, said the Government believes a private sector-led approach is more viable and sustainable for implementing climate finance initiatives effectively.
“This project is much welcomed by the Climate Change Management Department and its parent ministry, as to date, Zimbabwe has only been able to submit two full funding proposals to the Green Climate Fund.
“This project is the first of its kind to truly tap into private sector investment and will also go beyond grant-based financing to explore non-concessional instruments such as subordinated loans,” said Ms Mukonoweshuro.
She added that the project is expected to benefit approximately 100 000 farmers across Mashonaland East, Central and West, and Matabeleland North and South. It will focus on rehabilitating irrigation schemes, improving water security, climate-proofing agricultural practices, and enhancing weather information systems, among other activities.
