adminMATABELELAND Region has failed to use the Credit for Agricultural and Expansion (Create) Fund amid revelations that the three provinces that make the region have only accessed 10 percent of the $10 million disbursed this year.
The Create Fund, which is owned and run by a local non-governmental organisation, Zimbabwe Agricultural Development Fund (ZADT) and administered through local financial institutions, is meant to benefit those in agricultural chain activities.
The agricultural chain players include agro dealers, processors, contractors, wholesalers and input manufacturers.
Speaking at the official launch of the credit facility in Bulawayo last week, ZADT relationship manager Mr Fortune Vengesai bemoaned the low uptake of the fund from the Matabeleland region.
“We have released almost $20 million into the market through banks since 2010. At the end of July this year we were sitting on $10 million distributed to various players,” said Mr Vengesai.
“We are concerned by the low uptake of the fund by the Matabeleland region. Matabeleland South and North combined had only accessed five percent and Bulawayo another five percent.
He said in other provinces like Manicaland, the uptake was high.
“Manicaland had accessed 23 percent of the fund, 19 percent went to Mashonaland Central, Mashonaland West 10 percent and Masvingo received nine percent of the fund,” said Mr Vengesai.
“The total revolving fund that has been made available is $28 million and we have about $18 million which we are trying to push onto the market to benefit the targeted people and that is why we are here targeting Matabeleland region so that people can utilise it,” he said.
He said more than 36 000 people have benefited from the fund which is repaid at 11,5 percent interest rate.
The official said the banks that were administering the Create Fund were BANC ABC, FBC, NMB Bank and Steward Bank.
“The facility is targeted to value chain actors and the beneficiary should have a linkage with smallholder farmers. In applying for the loan you need to demonstrate your linkages with the smallholder famer and the money has to be repaid on maturity,” said Mr Vengesai.
He said loan sizes range from $5 000 and $200 000 and the working capital tenures range from three months to 12 months and up to 24 months for capital investments loans.
However, farmers at the occasion said the fund should directly fund smallholder farmers.
“We would have wanted the Create Fund to directly benefit the farmers so that they will be able to buy the necessary equipment and grow and become big farmers,” said a farmer from Esigodini.
Another farmer from Plumtree said they were not aware of the facility and urged ZADT to go out and advertise the facility especially in the remote areas.
ZADT was created in 2010 by SNV Netherlands Development Organisation and Humanistic Institute for Development Co-operation (Hivos) for the primary purpose of contributing to the recovery and improvement of the smallholder farming sector and improving food security and incomes of rural households in Zimbabwe.
Online Reporter