Online Reporter
Michael Tome
Business Reporter
FARMERS and young entrepreneurs have been urged to improve the bankability of their businesses to enhance their chances of accessing funding by adopting sound financial management practices and maintaining transparent digital records.
Speaking at the Harare Institute of Technology (HIT) Technovation Expo Symposium in Harare on Tuesday, NBS Bank Relationship manager Mr Samuel Mapuranga said financial institutions are increasingly assessing borrowers based on the quality of their financial records, governance structures and the ability of their businesses to generate predictable cash flows.
The symposium, held under the theme “Building Seamless Digital Supply Chains for Competitive Agribusiness Growth,” brought together stakeholders to discuss the role of technology in transforming Zimbabwe’s agricultural sector.
Mr Mapuranga said businesses with traceable cash flows and transparent financial reporting stand a better chance of securing credit.
He said banks also expect borrowers to present well-prepared projects supported by comprehensive feasibility studies, realistic business plans and clear repayment strategies.
“Bankability characteristics are the core financial, legal and operational traits that make a project or company attractive enough for banks to provide loans. Lenders look for predictable cash flows, sound financial stability, proven business models and healthy working capital,” said Mr Mapuranga.
He urged farmers to separate personal finances from business operations, saying the practice creates a clear financial footprint that enables banks to accurately assess business performance.
Adding that many farmers continue to rely heavily on cash transactions instead of using formal banking channels, making it difficult for financial institutions to verify their income and assess their creditworthiness.
“One of the ways of becoming a smart farmer is separating your personal financial account from your business account so that you maintain a good digital cash flow and footprint.
“There are farmers who have business accounts but are not fully utilising them. They continue accepting cash instead of processing transactions through the banking system. That destroys their financial record and affects the bank’s assessment of the business,” he said.
Mr Mapuranga said mixing personal and business expenditure also raises concerns among lenders.
“When a bank reviews an account and finds business income mixed with daily personal expenses, it signals a higher level of risk. If a farmer is advanced US$10,000, there is concern that part of the money could be diverted to non-business expenses before productive activities such as purchasing inputs.”
He encouraged farmers and entrepreneurs to strengthen corporate governance, improve financial discipline and ensure proper control of business finances.
Well-prepared and bankable proposals stand a much better chance of securing funding.
Also speaking at the symposium, Ruri Produce founder and chief executive Mr Daniel Rungani said farmers should leverage digital technologies like Artificial Intelligence to be assisted in preparing documents needed to access finance.
He said information and communication technologies (ICTs) enable farmers to prepare credible business plans and improve their financial management, making them more attractive to lenders.
“Technology can help farmers develop workable business plans that can be used to secure funding from banks. These digital solutions are becoming an important tool for improving access to finance and addressing some of the challenges facing agribusinesses,” said Mr Rungani.
The symposium highlighted the growing importance of digitalisation in agriculture, with participants emphasising that improved financial management, stronger governance and technology adoption are essential for enhancing the competitiveness of Zimbabwe’s agribusiness sector and unlocking investment.
