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Business Reporter
Agribank is targeting to raise $20 million from Agrobills this year to fund various agricultural programmes, managing director Sam Malaba said. The bank last year raised the same amount. “During the year 2015 we managed to raise $20 million through agrobills and the response from the market has been overwhelming. Therefore we are looking at raising another $20 million this year that will go towards funding various agricultural programmes and projects,” said Mr Malaba.

Following additional capitalisation by Government last year, the bank accessed the Aftrades facility to the tune of $35 million and this greatly ameliorated the liquidity challenges which had adversely impacted on the performance of the bank. Capitalisation and subsequent access to the Aftrades facility and profitable trading in the second half of the year resulted in enhanced liquidity for the bank.

Mr Malaba said Agribank was removed from the United States sanctions list in February this year and is now looking forward to pursuing lines of credit and engagement with development partners for agricultural funding particularly to the small scale farmers. Agribank agriculture development executive director Francis Macheka said the bank in 2015 also introduced a micro-finance division which performed well despite the prevailing economic conditions.

He said the microfinance division played an important role in capturing the unbanked while also encouraging small holder savings. “We have managed to capture the unbanked through our micro-finance division where are financing agricultural projects and other small to medium businesses related to agriculture. We think the micro-finance division has a huge role to play in restoring the fortunes of the bank and also driving the financial inclusion initiative,” said Mr Macheka.

Going forward, Mr Malaba said the bank envisages increased Government support and private sector partnership in agriculture financing and development. He said implementation of the debt clearance programme will unlock significant financial resources for Zimbabwe, underpinning growth and recovery.

“It is the expectation that international development partners will focus on agriculture and infrastructure development, contributing to Zim-Asset, Food and Nutrition as well as agro-based value addition.

He said cost control and containment remain a strategic imperative for the bank given the amplified attendant risks in revenue generation.