Zim secures US$15m funding for young farmers

Kudakwashe Mugari

Deputy National Editor

OVER 100 000 smallholder farmers from 15 districts are set to transition from aid dependency to bankable formal livelihoods over three years under a US$15 million Zimbabwe National Livelihood Graduation Programme (ZNLGP).

The programme is an inclusive business strategy led by U Can Company (UCAN) from South Africa and the One Bridge technological platform in collaboration with David Munowenyu Foundation and the African Manufacturers Foundation.

Zimbabwean entrepreneur, Mr David Munowenyu, has secured a transformative investment programme for Zimbabwe’s agricultural sector, bringing global empowerment organisation UCAN and its international financing partners into the country to operationalise the programme for the next three years.

“This initiative aligns with the country’s Vision 2030 objective of being a prosperous and empowered upper-middle-income society,” he said.

“The deal focuses on seven high-impact value chains, including blueberries, dairy and maize, to enhance food and nutrition security and export markets.”

“This initiative has the potential to create over 30 000 jobs and contribute to Zimbabwe’s gross domestic product (GDP) growth.”

Mr Munowenyu was optimistic the deal would be a game-changer.

“This is a deal that is going to benefit young farmers from all the country’s 10 provinces,” he said.

“Farmers have been facing challenges of access to inputs and technical knowledge; now this deal is bringing solutions to the agricultural challenges.

“The pilot project will start in Manicaland then spread to other provinces.”

UCAN co-founder, Mr Steve Carver, landed in Harare on Sunday and spoke glowingly about the economic progress made under the new dispensation and how his company was coming in to complement government efforts towards transforming the agriculture sector into a US$16 billion sector.

The deal is backed by a blended capital facility targeting between US$5 and US$15 million in Phase 1 alone, with a national scale-up pathway linked to One Bridge’s ongoing international fundraise of between US$500 million and US$1 billion from institutional and development finance institution (DFI) partners globally.

Zimbabwe now has the perfect opportunity to tap into such a structure with the possibility of anchoring on smart agriculture facilities.

Under the pilot phase, between US$0,5 and US$1,5 million will be spent on capacitating 3000 to 5 000 smallholder farmers in two to three provinces.

Priority crops for the initial rollout include chilli, paprika, legumes and horticulture produce, all selected on the basis of existing verified buyer demand.

Multi-cropping is a core requirement of the programme, with each participating smallholder farmer growing a minimum of three crops to reduce risk and generate income across a longer portion of the year.

After the pilot phase, phase one of the programme will be the national phase, wherein between US$5 and US$15 million will be injected into 10 to 15 districts for the benefit of over 100 000 smallholder farmers.

“President Mnangagwa is on record that Zimbabwe needs value addition, not just primary production. This programme will deliver on both,” he said.

“We are building farmers who can supply agro-processors, meet export standards and access finance independently. That is how you build a US$16 billion agricultural sector not through inputs alone, but through bankable, market-linked producers.”

The programme was born out of the realisation that the majority of smallholder farmers’ productive activity generates no credit history, no tax base and no bankability.

Also, smallholder farmers lack market linkage, finance and offtake, thereby trapping them at a survival level. Existing donor programmes are input-focused, short-term and not linked to markets or capital. Donor cycles sustain poverty rather than building self-sustaining economic capacity.

Mr Lebo Radebe from South Africa, representing the African Manufacturers Foundation (AMF), added that Africa needs to move from being a consumer to being a producer of value-added goods from its God-given natural resources.

“AMF is positioning to implement the Africa Continental Free Trade Area (AfCFTA) effectively, creating African markets for African products,” he said.

A practical example of the success story of a deal like this is South Africa, where a similar contract farming programme began with 3 000 enrolled farmers and identified 800 high-performing smallholders for sustained commercial contracts.

In Marikana, former miners retrained as commercial farmers and launched Zama Zama Chilli Sauce, a market-ready brand that now tells the story of UCAN’s community transformation model.

There is going to be rural development there by stimulating local economies and improving livelihoods, access to markets that will connect farmers to digital markets and export opportunities.

“The deal is also expected to promote sustainable agriculture and resilience,” he said.