17pc increase in horticulture earnings The horticulture sector is composed of flowers, vegetables, berries, citrus, nuts, avocados, deciduous and other fruit, cuttings and plants, spices and herbs as well as tea and coffee.   

Special Writer

THE Horticulture Development Council (HDC) is striving to increase horticulture exports to US$2 billion by 2030 in line with the operationalisation of the country’s Horticulture Recovery and Growth Plan.

This comes as the country recorded a 17 percent increase in exports in 2021 with HDC chief executive, Linda Nielsen upbeat about the success of the council’s ambitious plans. 

She revealed this during a horticulture business breakfast meeting held in Harare recently.

The meeting was a follow-up to a successful Horticulture Investment Forum held on the 4th and 5th of November 2021 whose key outcome was the need to create opportunities for face-to-face interactions among all stakeholders within the horticulture sector.

“In response to the current fragmentation within the horticulture sector, the HDC has committed itself to organising events on farm and in urban areas to facilitate knowledge transfer, innovative solutions and networking.

“This is in line with HDC’s mandate to deliver on the transformation and growth of the Zimbabwe horticulture sector with this meeting bringing together the key ingredients to the growth of the sector that include farmers, funders and facilitators.

“The desired outcomes are the inclusion and increased profitability of smallholder farmers, youth and women, greater collaboration across the sector, improved financing within the sector and the integration of sustainability into production systems,” said Nielsen.

The HDC, at the inaugural horticulture investment forum, had set an initial annual 30 percent growth from 2021 to 2030 in order to reach a US$1 billion horticulture exports by 2030.

Meanwhile, statistics availed by Zimstats have since indicated that the volume of horticulture exports had risen from 110 million kilogrammes achieved in 2020 to 129 million kilogrammes in 2021 representing a 17 percent growth.

On the other hand, realised horticulture earnings obtained a 2 percent rise from US$72 million in 2020 to US$ 73 million in 2021.

Guest speaker, head of agriculture, environment and private sector development EU in Zimbabwe, Mr Bernard De Schrevel took the opportunity to commend the trade and investment cooperation between the European Union (EU) and Zimbabwe.

“Zimbabwe is one of the five countries within the Eastern and Southern Africa (ESA) bloc benefiting from the Economic Partnership Agreement (EPA) with EU. The benefits include duty free quota access to

EU markets, asymmetrical opening of the Zimbabwean market to EU exports and special safeguards and measures to support development objectives,” said Mr Schrevel.

Zimbabwe has over the years been a recipient of EU funding and this relationship needs to be developed further going into the future.

Mr Schrevel commended the EU’s support to private sector investments in Zimbabwe starting with a EUR15 million credit line to CABS in 2021, followed by a EUR12, 5 million credit line with FBC in 2022 as well as EUR 12, 5 million credit line with NMB in 2022.

The EU also has EUR21 million earmarked for guarantees in agriculture, Small and Medium Enterprises (SMEs), renewable energy and local currency financing for the period 2021-2024 On the local front, the NMB bank has taken the lead by coming up with suitable customer friendly financing mechanisms for horticulture farmers.

NMB Bank Ltd head banking business, Mr Erasmus Bhunu said the country had benefitted under the EUR 12, 5 million credit line facility and other credit lines meant to support economic growth for the horticulture sector.

“This facility seeks to provide long-term, fairly priced offshore credit as well as assist farmers to re-tool and invest in new technologies. NMB’s key role is to assist exporters compete on the global arena to compliment Government efforts to boost exports,” said Mr Bhunu.

The facility is open to all exporters who want to scale up production and new companies that are export oriented and not restricted to NMB customers only, added Mr Bhunu.

Additionally, the funding is for both capital expenditure and working capital needs with a tenure of seven years and a two-year grace period for repayment. The loan interest and repayment structures are negotiable depending on risk profile and cash flow structures.

The Government has since classified the horticulture sector, as a low hanging fruit capable of turning around the country’s fortunes in terms of increased foreign currency earnings, employment creation and economic development in a short period of time.

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