Govt wants debt freeze for farmers

Cde Mujuru

Cde Mujuru

Tendai Mugabe recently in MUKUMBURA
VICE President Joice Mujuru says Government intends to engage banks with a view to freezing debts owed by farmers to enable them to access funding for the 2013/14 cropping season.She said the stop-order loan repayment system should be resuscitated with respect to farmers who delivered grain to the Grain Marketing Board.

VP Mujuru said this in a speech read on her behalf by Mashonaland Central Minister of State for Provincial Affairs Cde Martin Dinha on Saturday at victory celebrations hosted by  Mount Darwin North legislator Cde Novet Muponora in Mukumbura.

Addressing questions of food and nutrition, VP Mujuru said:
“That financial institutions (will) be engaged with a view to securing a moratorium for debt repayment by farmers already saddled with debts to the same institutions, to enable them to access funding for the 2013/14 agricultural seasons.”

VP Mujuru said Government, through the District Development Fund, had acquired tractors to bolster rural tillage and the Zunde raMambo facility.

In Mashonaland Central, VP Mujuru said, Government had allocated 40 tractors.
“The tractors will help chiefs, child-headed families, widows and widowers, people living with HIV and war veterans,” she said.
VP Mujuru said Government would soon formulate a law that regulates contract farming, making it mandatory for farmers and contractors to meet their obligations.

Some farmers have been short changed by contractors after signing contracts they do not understand while some farmers were engaging in side marketing.

VP Mujuru said the law was aimed at creating a win-win situation between farmers and contractors.
“The Government package provides a mechanism for the enforcement of contractual obligations to protect the investments of farmers, contractors and suppliers,” she said.

“This is the law. Farmers and contractors must respect and live within the law. Hatidi vaya vanonyepera kungwara vanoita side marketing or those companies that provide inadequate inputs and pay poor prices that are even below international market prices.”
VP Mujuru said Zanu-PF was committed to implementing promises made to the people as espoused in its manifesto.

In this regard, she said the Government had intensified efforts to provide inputs for the 2013/14 farming season. She said Government had made available US$182 million for the summer cropping season and banks were also complementing Government efforts by developing rural infrastructure such as irrigation and feeder roads.

VP Mujuru said Government was aware of the challenges facing people in Mukumbura such as the poor road network and the need for upgrading of immigration offices.

“I am aware of the poor state of the roads in the constituency and nationwide,” she said.
VP Mujuru called for unity of purpose among party supporters in Mashonaland Central as they elect a new provincial leadership later this month.

The incumbent Cde Dickson Mafios would battle it out with Cde Joboringo Mushore for the chairmanship of the province.
“Team Zanu-PF kushanda nevamwe zvakanaka takabatana,” she said.

“Mazvake-mazvake haatibatsiri uye hatiade. A leader whose eye is blind to nepotism, a leader who does not become cheap and by demonising and gossiping around, but focuses on challenges facing the constituency and how these can be resolved.”

Cde Muponora, who is also the Deputy Minister for Small to Medium Enterprises and Co-operative Development, thanked the electorate for voting resoundingly for Zanu-PF.

Cde Muponora got 17 910 votes in the July 31 harmonised elections against MDC-T’s candidate’s 612.

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  • Ruzvidzo

    Government seems determined to bring the whole economy and infrastructure to a grinding halt by cutting it off at the knees.
    First by writing off debts leaving Councils even less capable of supplying a minimum service, with all the health risks involved (next cholera epidemic when?), electricity power supplies more chaotic, now even fewer banks will survive being forced to assume even more debts and defaulters.
    With the population and farmers taught to expect if you wait long enough, everything is given free or all debts will be written off, there’s absolutely no incentive to pay for bills or loans any more. There may be some hidden strategy at work here, with the whole country bankrupt, rich pickings are available for the fat cats who’ve externalised their filthy lucre through corrupt deals, when they can buy up everything under liquidation for a song.

  • Magen’a

    We all know who is owing banks huge amounts of monies – of course the big ones. They are the same people whose electricity bills for farms were cancelled. At this rate the banking system will collapse. With such rhetoric from leadership which foreign investor would want to risk their capital by investing in a country whose leadership pursue policies that are sure destroy the economy?

  • duma

    where are those tractors in matebeleland and the midlands…are they only for mashonalland?


    Loans that were extended to farmers were generated from depositors’ money as bank do not own money. VP, debt freeze is only logical if depositors are barred from accessing their monies from the banking system. The only practical way out is for government to assume the debt, probably by converting into paper with prescribed status and this has the effect of lessening the burden on banks as the government will be making periodic interest payments.

  • dhewa

    I think this is wrong. Banks used depositors’ money to loan out to farmers and now we just freeze the debts? Who will pay back the depositors? I am sorry this populist theory does not work. By the end of the day it is the big shark that is benefiting from this proposal, he/she owes a bank thousands of dollars. NO NO NO NO! Lets have normalcy in our economy. Very soon schools, hospitals and other commercial entities will join in.


    there you go again. you want to throttle the banks and please we don’t want the 2007-8 episode repeated. you want banks to freeze loans…. my foot… that’s our moneys. depositors’ monies. matanga .. you are good at recycling ideas. Mai Mujuru (Mother) with all due respect. hazvishandi izvomavakuda kuita. people borrowed from banks, some never went to the fields, they used the money for their campaigns and the more corrupt married more wives and some went outside the country for their usual monthly medications. you want to give them a reprieve. no no no no.

  • Japana Hapana

    Everything for mahala. even bank loans are now for mahala. if you freeze them how do you then expect the farmers to pay back two loans at the same time when they can’t pay only one? Common sense. maybe not so common to some of these politicians. or you will force instruct the banks to write off the debts.

  • majuru

    Even for business honourable vice president ….we are equally in the same pit

  • Siphathisiwe

    Current timing of this ad hoc initiative to further increase indebtedness of banks is questionable.
    Finance Minister Patrick Chinamasa is in negotiations with the IMF and AfDB, with prospects of external debt reduction and further loans dependent on sound economic policies. Two studies financed by these institutions are currently under way.
    The IMF Staff-Monitored Programme which began in June running until December with the aim of implementing a raft of economic reforms, and the African Development Bank (AfDB) who’ll undertake a debt sustainability analysis to eventually allow access to funds under the Heavily Indebted Poor Countries (HIPC) facility.
    IMF SMP has already failed several benchmarks, such as transparent remittance of mining (diamond) profits to treasury, and actions such as cancellations of Council, water and electricity bills followed by announcements like this ‘Farmer Debt Freeze’ sends all the wrong signals about Good Governance.
    One could understandably be under the impression, that certain members of Government wish to deliberately torpedo any possible opportunity to re-engage the international community or promote economic recovery.

  • Chawe

    This is going too far. Surely if we are to freeze electricity, council rates and now bank debts owing – where are we really heading to. Are we going to watch this country’s economy wasting away for the benefit of some very insensitive, greedy individuals. And talking about tractors acquired through DDF – why were they not distributed fairly. Govt is rightly aware of provinces that are lagging behind and need genuine assistance to ALSO develop, what’s so special about Mashonaland Central???

  • Mimi

    @Ruzvidzo:disqus how right you are. ZANU-PF has gone back to its game of wanting to enrich those that are rich already. Why doesn’t the government request RBZ to release the list of names of the individuals that have received farm implements and imputs before if they want to be transparent. It is obvious that those who are going to be given these loans are the Ministers and big Chefs under the guise that these are able to pay back the loans. We all know they never paid back a dime eversince the Zim era. Government seems to wan to ensure that the populace bleeds to death.

  • mafikezolo

    This woman now wants to put the final nail in the economic coffin? These are depositor’s money madam VP how on earth will farmers then pay for two loans. Pamberi ne Zanu PF bhora mughedi

  • YOWE78

    are these so-called leaders serious???? These unrealistic policies will continue to hurt the country

  • Povo Tapera

    Do us a favour,Just freeze the whole country