Online Reporter
Business Reporter
The Infrastructure and Development Bank of Zimbabwe is considering raising US$50 million to fund the horticulture sector, primarily targeting smallholder farmers and small enterprises.
The institution has already taken a proactive step by developing and submitting a concept note for the Horticulture Investment Fund for Enhanced Climate Resilience to the Green Climate Fund to secure climate finance.
This strategic move shows IDBZ’s commitment to address climate change and promote sustainable development by supporting the resilience of horticultural projects, which eventually contribute to environmental sustainability and economic growth.
GCF is the world’s largest dedicated climate fund, created under the United Nations Framework Convention on Climate Change.
It is a critical component of the Paris Agreement, helping developing countries finance projects that reduce greenhouse gas emissions and increase their ability to adapt to climate change.
This comes as the Horticulture Development Council has indicated that it projects the sector’s annual export value to grow to US$2 billion in the coming few years, given the potential that lies within the sector’s production locally.
The current annual export value from the sector hovers around US$80 million.
According to HDC, this goal will be achieved through the active involvement and input of key stakeholders, including local financiers and member organisations such as the Citrus Growers Association, Avocado Growers Association, and Berry Growers Association.
These organisations are expected to play a vital role in empowering new exporters to reach their full potential and exceed expectations, going beyond the capabilities of larger producers.
As part of the plan, HDC is developing modalities to double citrus production from the current 4 000 to 8 000 hectares, an investment that is expected to generate at least US$84 million per year in export revenue.
Blueberry production is also expected to increase to 1500 hectares from the current 600 hectares, with a projected yield of US$112 million a year.
Macadamia production is expected to grow to 13 000 hectares from 10 000 hectares, while tea production is set to increase to 6 300 hectares from the current 5 300 hectares.
HDC has also set targets to boost production across various crops, which include expanding apple production from 500 hectares to 1 500 hectares, avocados from 2 800 hectares to 5 500 hectares, and bananas from 8 000 hectares to 14 000 hectares.
The council also plans to expand coffee production from 680 hectares to 1,500 hectares, summer flower production to 600 hectares from 100 hectares, and rose production from 30 hectares to 330 hectares in the near future.
These expansion plans demonstrate the council’s commitment to growing Zimbabwe’s horticultural sector and increasing the country’s agricultural output, even amidst the requirement for vast amounts of capital.
Zimbabwean horticulture is broadly categorised into three main groups that consist of annual crops, which mature within 6-12 months, like peas, chillies, peppers, garlic, tomatoes, cucurbits, potatoes and brassicas.
The other category comprises perennial crops, which take 3-5 years to mature, and this group includes crops like blueberries, passion fruit, kiwi fruit, and various types of flowers.
Another category of crops consists of plantation crops, which take seven years or more to mature. This group includes citrus, avocado, macadamia, pecan and coffee plantations, all of which demand meticulous planning and management due to their long-term investment nature.
“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 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 financials to June 2025.
He added that the bank is actively developing further concept notes for submission to the GCF, focusing on low-emission transportation and renewable energy solutions.
The GCF receives pledges from developed countries, which historically have been responsible for the majority of greenhouse gas emissions.
It also accepts contributions from some developing countries, private entities, and alternative sources.
Funds are channelled through a network of accredited entities, which include national, regional, and international institutions like 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 believed that a private sector-led approach was more viable and sustainable for effectively implementing climate finance initiatives.
“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 really tap into private sector investment and will also go beyond grant-based financing and tap into the more non-concessional financing instruments such as subordinated loans,” said Ms Mukonoweshuro.
She said the project will ultimately impact approximately 100,000 farmers across Mashonaland East, Central and West, and Matabeleland North and South, looking at rehabilitating water irrigation schemes, improving water security, climate-proofing, as well as enhancing weather information systems within the country, amongst numerous other activities.
