Online Reporter
Edgar Vhera, Specialist Writer – Agribusiness
THE Smallholder Agriculture Cluster Project (SACP) has called on financial institutions interested in disbursing development funds to eligible smallholder agricultural value chain actors, to submit their expressions of interest by June 24.
SACP is a collaborative initiative funded by the Government of Zimbabwe, the International Fund for Agricultural Development (Ifad), and the Opec Fund for International Development (Ofid). The project promotes inclusive value chain development activities across five provinces in Zimbabwe, covering 18 participating districts.
The overarching goal of SACP is to enhance equitable smallholder participation in market-oriented and climate-smart value chains.
Under Expression of Interest (EOI) SACP Loan No/Credit No/Grant No. 2000003764, Reference No. (as per 2025 Procurement Plan), financial institutions are invited to access a line of credit (LOC) hosted by the Reserve Bank of Zimbabwe (RBZ) for on-lending to eligible agricultural value chain actors.
“This call for EOI is open to financial institutions accredited or registered with the RBZ, fully compliant with relevant regulations, and with a minimum of three years of operational experience. Institutions must also possess an agricultural financing strategy and a proven track record in lending to the agricultural sector — particularly to smallholder farmers and agriculture-focused micro, small and medium enterprises (MSMEs) — through the provision of affordable loan products tailored to the capacities and needs of SACP target groups,” the notice stated.
Eligible financial institutions must demonstrate the capacity to serve agricultural producer groups (APGs), rural MSMEs, and value chain lead enterprises (VCLEs) operating within the districts and provinces covered by SACP.
The notice further revealed that the LOC hosted by the RBZ is available for financial institutions to on-lend to APGs, MSEs and VCLEs supported by SACP, aligning with the Government’s broader strategy to transform the smallholder agriculture sector.
“The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development is using the LOC as one of the primary instruments for channelling debt financing to key market actors. This approach aims to address existing gaps in the provision of affordable working capital and investment credit to agribusinesses within specific value chains,” the notice continued.
The development objective of SACP is to enable rural households to sustainably increase their income within irrigation schemes and adjacent rain-fed areas supported by the programme.
More broadly, the project seeks to achieve enhanced income and improved nutrition through the sustainable transformation of the smallholder farming sector.
SACP will be implemented in 18 districts across Mashonaland East, West and Central provinces, as well as Matabeleland North and Midlands provinces.
The information submitted by financial institutions will be used by SACP to assess their eligibility to proceed to the due diligence phase. Institutions that meet the due diligence requirements will be invited to submit a full proposal.
SACP forms part of the Zimbabwe Horticulture Enterprise Enhancement Programme (Heep) and follows the recently concluded Smallholder Irrigation Revitalisation Programme (Sirp). Launched in 2017, Sirp was a seven-year initiative funded by Ifad, Ofid and the Government of Zimbabwe. It contributed significantly to building the resilience of smallholder farming communities in the provinces of Manicaland, Midlands, Masvingo and Matabeleland South, particularly in the face of climate change and malnutrition.
