TN bank establishes livestock trust

The trust has already established branches in Featherstone.
TN bank chief executive, Mr Tawanda Nyambirayi, said the livestock trust entered into an agreement with a local commercial bank to lend money to communal farmers on the security of cattle deposited with the TN livestock Trust.

“This will enable farmers to raise capital for other agricultural inputs, thereby boosting food security,” he said.
Mr Nyambirayi said farmers would earn a return on their cattle deposits just as cash deposited earns interest on their cash deposit with a bank.

“Farmers can choose to receive their investment return in cash or in the form of cattle,” he said.
He said farmers were protected against loss of cattle as the trust takes out insurance on the deposited head and also employs experts to look after the cattle using modern livestock husbandry methods reducing mortality rate in the process.

“The major barrier is trust. Livestock owners want to know that they will actually achieve the promised benefits.
“The challenges will only be overcome when prospective customers visit existing branches,” he said.

The trust started with 60 herd of cattle in 2012 but has now increased to 340 cattle including the capital herd.
TN Livestock Trust executive, Mr Charles Chakoma, said there was no maximum or minimum deposit in terms of the number of cattle committed towards the project. He said farmers will start withdrawing their cattle after two years.

“However, farmers can start benefiting from access to loans immediately after making a deposit, allowing or due processes to take place.Farmers access loans up to 60 percent of the value of cattle deposited,” he said.

Mr Chakuma said once a farmer deposits his cattle with the Trust they are issued with a certificate of deposit that bears a description of each animal and their value.
“A farmer receives interest in the form of livestock units every six months. A farmer then chooses to redeem these livestock units as cash or as additional cattle,” he said.

Farmers are free to visit these farms from time to time.
TN Livestock Trust will maintain capital in the form of livestock of a value not less than 25 percent of the total livestock deposits.