adminThe bank said plans to set up the facility were at an advanced stage, with the fundraising initiative due to start soon.
Soyabean is largely used in the production of cooking oils, with the residue from the crushed seeds used to make stock feed.
Major consumers, including Olivine Industries and National Foods, have had to import soyabean to sustain operations.
CBZ managing director Dr John Mangudya confirmed the development, saying modalities were being put in place.
“We intend to raise about US$20 million through a bond to finance soya bean production,” he said.
Dr Mangudya said the initiative followed the realisation that there was critical shortage of soya bean, which is largely grown on a commercial basis.
CBZ’s US$20 million agriculture bond, which would be extended at low interest over a one-year period, would enhance production.
Dr Mangudya said the bank realises the critical role of financial intermediation to economic development, hence the fundraising initiative.
To that end, the bank early this year raised US$70 million through a Diaspora bond to assist with infrastructure development across the country.
Prior to the Diaspora bond, CBZ had also raised US$50 million through the PTA Bank to fund working capital requirements for local industry.
The good climate and fertile soils in the country meant it had limitless crop production potential, but the shortage of funding remained the biggest constraint.
Zimbabwe faces a serious liquidity crisis following a decade of economic instability, which shrunk its gross domestic product by about 50 percent.
This was compounded by limited foreign capital inflows over perceived country risk profile.
The liquidity crisis has resulted in the high cost of finance.
With the central bank not being well-funded financial intermediation by banks has suffered since the Reserve Bank does not have the capacity for lender of last resort.
As a consequence, there has been no inter-bank market since the switch to the multi-currency as there is little capacity and confidence to sustain such a system.
An inter-bank market is an arrangement that allows banks to lend to each other to cover shortfalls, especially overnight, before resorting to the central bank.
It has therefore taken CBZ to mobilise huge sums of money to provide impetus for growth in an economy maligned by shortage of funding.
CBZ remains the country’s biggest bank, with a balance sheet of US$687 million.
Online Reporter