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Rumbidzayi Zinyuke, Senior Reporter
Two significant public-private partnerships valued at over US$220 million have been signed by Government with private entities to bolster irrigation development across the country.
This move signifies a major milestone towards ensuring food security and economic growth through increased agricultural productivity.
The first agreement with Valley Irrigation is worth US$172 million to provide centre pivots and conveyancing infrastructure to cover 23 000 hectares. In the second agreement, the Government of Zimbabwe, again represented by Prof Jiri, signed €51 million deal with Spanish facility from the company Grupo Charmatin through their partners in Zimbabwe Munda Wedu Private Limited. This partnership will go towards developing 12, 725 hectares of land, further expanding the country’s irrigated agricultural capacity.
The agreements were signed before President Mnangagwa during the inaugural Zimbabwe Irrigation Investment Conference last Friday, which seek to boost irrigation development and provide opportunities for public-private sector engagements.
Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka said public-private partnerships were key in the acceleration of development under the Second Republic.
“We were developing irrigation at an average of 2 000ha a year since independence, but since the arrival of the Second Republic, this was increased to an average of 8 000 to 9000ha a year. This additional impetus will double this figure. Cumulatively, US$223 million has been signed here today. This is a historic milestone,” he said.
Minister Masuka said Zimbabwe needed to delink rainfall from production as this would enable farmers to use water sources available to them.
Government projects the national irrigation potential at 2,2 million hectares from the more than 10 600 dams and water bodies available countrywide. The total includes the myriad of smaller farm dams, as well as the major dams built by Government.
The coming on board of irrigation development partners is expected to ensure the achievement of the set targets.
The Second Republic has rolled out the accelerated irrigation rehabilitation and development agenda, which has seen a shift by the Government to focus on the deliberate expansion of water harvesting and irrigation development.
This has resulted in extensive construction of major dams across the country including Marovanyati, Muchekeranwa, Chivhu, Gwayi-Shangani, Kunzvi, Tuli-Manyange, Dande, Ziminya and Tugwi-Mukosi.
Speaking after the signing ceremony, Valley-Centre Pivot Irrigation (Pvt) Ltd managing director Mr Kevin Williams said his company’s investment will make an impact on many families.
“The nature of the deal is targeting around 23 000ha across the country and we are targeting under-used water bodies and productive land,” he said.
Pedstock-Munda Wedu representative Mr Javier Colino highlighted the positive impact the project will have on communities.
“The transaction is based on a facility with funding from Spain for 12 700ha for irrigation machinery, centre pivot equipment. There are 342 machines for the facility worth €51 million. This programme will benefit more than 300 farmers around Zimbabwe,” he said.
Finance and Economic Development Minister Prof Mthuli Ncube said Treasury is committed to supporting projects and programmes aimed at enhancing the growth of the irrigation sector.
“In support of investment in irrigation infrastructure, the Government has availed various tax incentives. Government has granted national project status for construction of dams such as Vungu and Semwa to support irrigation programmes.
“The national project status is granted in terms of Sections 140 and 141 of the Customs and Excise (General) Regulations, as read with Statutory Instrument 5 of 2021. Under national project status, dam contractors have been relieved from paying customs duty and VAT on capital goods which comprises civil and engineering structures, pumps and pipes.
“In addition, movable equipment which includes excavators, concrete mixers and dump trucks, among other goods, are imported duty free on a temporary basis,” he said.
Under the same initiative, all agricultural inputs, implements and produce are exempted from value added tax in terms of Sections 10 and 11 of the Value Added Tax Act, as read with Statutory Instrument 15 of 2024. These include tractors, machinery for soil preparation, combine harvesters, centre pivots, sprinklers and pumps.
Minister Ncube said VAT deferment was granted on irrigation capital equipment imported for a period not exceeding 180 days, subject to the conditions set by the Commissioner-General of the Zimbabwe Revenue Authority in terms of Section 12A of the VAT Act.
Currently, the minimum threshold is US$500 000.
He said the facility provided cash flow relief to irrigation farmers, in view of the huge capital outlays required in the import of capital equipment.
Online Reporter