Chronicle Editor
Judith Phiri , Business Reporter
THE Government has partnered AFC Land and Development Bank of Zimbabwe Limited (AFC Land Bank) and the Food and Agriculture Organisation FAO) to roll out a new agriculture financing model and e-voucher system to increase farmers’ access to inputs and ensure increased productivity.
The system was developed through funding from the African Development Bank (AfDB) under the FAO-managed Zimbabwe Emergency Food Production Project (ZEFPP). It will aid AFC Land Bank and the Government to improve the availability of certified seeds and fertiliser using ICT-based platforms and existing private sector-based distribution channels. As part of its contract with FAO, AFC Land Bank was supported in establishing a new loan management and e-voucher system which went live on January 21, 2024.
Speaking at the launch of the new system, FAO Deputy Representative in Zimbabwe, Eswatini, Lesotho, Mr Louis Muhigirwa said FAO was dedicated to co-operating with the AFC and the Government of Zimbabwe to promote the agricultural industry and improve food security in the country.
“FAO has been supporting Zimbabwean agriculture since 1984 and continues to support the Government’s commitment and implementation of agriculture and trade policy reforms that create enabling environment to make agri-food systems more inclusive, resilient and sustainable,” he said.
In May 2023, FAO officialised the partnership with AFC Land Bank focusing on the promotion of innovative financing mechanisms for improved access to inputs through the implementation of a seed revolving fund. This was to assist organise agriculture systems that would enable the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to achieve its main objectives through reaching out to farmers with limited resources and those that lack access to affordable finance to support effective crop production.
AFC Land and Development Bank Managing Director, Mrs Priscilla Munyeza said the new loan management and e-voucher system was an integrated digital platform solution that aids farmers to receive affordable finance and support production of certified seeds.
“Private sector producers in the maize and wheat seed value chain will also benefit from this facility. Re-payments (capital plus interest) by the targeted borrowers over an agreed period will go towards re-capitalisation of the fund to allow it to revolve and enable more of the targeted beneficiaries to borrow,” she said.
The revolving fund will be disbursed as loans to a total of 17 248 farmers; comprising 16 800 independent individual farmers and 224 farmer groups of a minimum of 10 members, to facilitate their access to certified seed from Private Sector seed suppliers.
About 112 farmers under private sector seed producers and 112 farmers under contractors will also receive loans under the fund to support wheat and maize seed production directly or through grower schemes and through value chain financing with off-taker arrangements.
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