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Edgar Vhera
Agriculture Specialist Writer
ONE of the five banks administering the US$30 million Horticulture Export Revolving Fund (HERF) – the Commercial Bank of Zimbabwe (CBZ), has revealed that the fund was still available for horticulture growers and urged would-be beneficiaries to come and apply for loans to fund their projects.
The other four banks are AFC Holdings, FBC Bank, NMB and CABS. The quartet had not commented on the matter at the time of going to press yesterday.
CBZ agribusiness manager Mr Moses Mlambo recently told stakeholders attending a chillies field day at Nyahondo Farm in Banket the bank was waiting for farmers to approach it and apply for the fund.
“We are participating in the disbursement of the US$30 million HERF facility that was availed by the Reserve Bank of Zimbabwe (RBZ) to assist farmers who want to venture into horticulture production.
“The funds are still there, we call upon farmers to visit any of our 62 branches to access the money to increase production and earn foreign currency for the country,” said Mr Mlambo.
His bank funded the host farmer, Mr Valentine Tapfumaneyi, to produce chillies on 15 hectares at his farm.
Mr Mlambo highlighted that CBZ was proud to partner with farmers who have ventured into horticultural production for both domestic and foreign markets.
He urged farmers to take farming as a business, get loans on time, produce on time and also repay loans on time.
CABS managing director Mr Mehluli Mpofu earlier in January revealed that his bank was administering US$5 million of the fund with US$2 million earmarked for financing working capital while US$3 million was for capital expenditure (CAPEX).
Mr Mpofu revealed then that they had not disbursed any amount, but had projects that were at various stages of approval.
Mr Mpofu said: “The loan application requirements are as guided by the Ministry of Finance, which will also play a part in the assessment of the projects to be funded. Working capital funding is up to 12 months and capital expenditure up to 36 months.
“The tenors will be determined by the customer’s cashflows and operating cycle. The Ministries of Agriculture and Finance have committed to a quick turn-around in terms of processing,” said Mr Mpofu.
“We are seized with identifying and on boarding potential beneficiaries for this fund. It is a fund that will go some way in capacitating horticultural companies and we expect utilisation soon,” said Mr Mpofu.
FBC Bank group marketing and public relations Mrs Annie Grace Mabuto in January said the funds were still available with the bank taking new applications and considering proposals, which were at different stages of the application process.
Mrs Mabuto said the tenor varied from six to 36 months depending on the purpose of the funding with interest rates ranging from eight to 12 percent per annum. Again, efforts to get an update on the disbursements under the fund were unsuccessful.
NMB Bank, which started disbursement of the funds in January this year also did not respond to questions on the current position.
AFC Holdings is also still to comment on the latest position of the fund.
The Government launched the US$30 million HERF in September last year to enhance the horticulture sector’s contribution to the growth of the country’s export earnings and economic development.
Finance and Economic Development Minister Professor Mthuli Ncube said the fund had the potential to close the funding gap and spearhead increased productivity, as well as finance bankable projects with a focus on value addition.
Online Reporter