Chronicle Editor
By Nkosilathi Sibanda, Business Correspondent
FARMER organisations are excited with plans to remodel Agribank and expect the move to enhance the banking institution’s impact by loosening funding bottlenecks for the sector.
The Governemnt is already seized with the restructuring exercise, which will see the state-owned bank being transformed into a Land Bank that would propel production through increased support for the country’s Agriculture and Food Systems Transformation Strategy.
Lands, Agriculture, Fisheries, Water and Rural Resettlement Minister Dr Anxious Masuka has said that the process to turn Agribank to a Land Bank was ongoing, with high expectations it would be concluded next month.
The new bank is expected to bring in financial aid specifically for the agro-industry and also be of help to small holder farmers who produce most of the food consumed locally.
They view the Land Bank as the solution, says Mr Winston Babbage the Zimbabwe Commercial Farmers’ Union vice-president.
“This is absolutely a brilliant move by the Government,” said Mr Babbage.
“Now the farmers will be able to walk into the bank and come out smiling as far as financing of farming projects is concerned. Our farmers have the ideas to bring back agriculture, what was lacking is financial support. We believe that with proper management and engagement, this Land Bank will change the agriculture sector.”
Mr Babbage said historically, farming in Zimbabwe was supported by banks, which made it easy for farmers to attain surplus.
Mr Land Ndebele, chairman of the flourishing Somnene Irrigation Scheme in Bulilima district said if the Government commits to supporting farmers financially, the agriculture landscape will change for the better.
“As far as agro-financing is concerned, as a country we are still a long way. But, we appreciate the commitment so far to turn the bank into what will be of benefit to many,” said Mr Ndebele.
Banks have in recent years come under fire for failing to support farmers, in particular small land holders who make up close to 90 percent of the sector.
Largely, the financial institutions did not find faith in helping the farmers with financing capital. Most of these farmers only have the land and no other collateral to claim loans for assistance.
Online Reporter