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Edgar Vhera Agriculture Specialist Writer

THE unbundling of Agribank into AFC Holdings has renewed the country’s hope of food and nutrition security through the provision of inclusive financial services under one roof.

This was revealed by AFC Holdings group chief executive officer Mr Francis Macheka recently when he appeared before the thematic Committee on Peace and Security.

“AFC Holding Company was set up to lead the positive transformation of the country’s agriculture sector. In that vein AFC Holdings’ two independent banks’ cooperative relationship will anchor the financing of revolutionary and transformative agriculture development in Zimbabwe. All AFC Land Bank customers’ accounts are automatically linked with the commercial bank,” said Mr Macheka.

Mr Macheka also appraised the committee on the simplicity of the way in which farmers can open bank accounts and access loans through AFC, leveraging over 45 branches country-wide.

“Our branches are located in strategic places where farmers are and we have made our application process as simple as A, B, C, D.  AFC Holdings understands the intrinsic needs of farmers and the sensitivities of the agriculture sector to seasonal timing,” added Mr Macheka.

As a result of climate change which has affected the rainfall distribution pattern over the years, the quest for mechanisation has come to the fore and AFC Holdings is well equipped to offer services that enable farmers to conduct their farming activities on time.

“Through, the AFC Leasing Company farmers’ requests for tillage services or any other farm-related equipment hire are being offered at discounted rates. Due to seasonal differences and natural disasters, which cannot be controlled by men, AFC is offering insurance services to all farmers.

“Provision of financial services, expert advice, leasing and insurance all under one roof makes AFC Holdings a true one-stop-shop,” Mr Macheka said.

The National Development Strategy (NDS)1 2021-2025 made it a priority to reform and restructure Agribank into a land bank to build confidence in the transferability and bankability of tenure systems and enhance the commercial value of the land.

The unbundling of Agribank resulted in a new entity, AFC Holdings with four separate entities: AFC Commercial Bank, which offers tailored banking solutions available through over 45 strong branch networks, AFC Land and Development Bank of Zimbabwe that is focussed on transforming agriculture through provision of affordable agriculture finance for all farming sectors, AFC Insurance – for flexible and tailor-made short term insurance solutions and AFC Leasing -hosting over 400 tractors and combine harvesters accessible at over 22 cluster centres countrywide.

“Access to affordable finance and farming equipment remains pivotal for the progression of agriculture in Zimbabwe.  AFC Holdings has accelerated its support of Zimbabwe’s agricultural sector through its one-stop offer of financial and agricultural support services. It is strategically positioned to drive the growth of the agricultural sector in Zimbabwe,” added Mr Macheka.

Mr Macheka revealed that following the re-branding exercise the institution had stepped up its marketing and communication efforts through various media channels.

“Communication on how farmers can open bank accounts, access finance and farming equipment as well as insurance under one roof are all being spread through various media channels.

“AFC Holdings has also forged a partnership with the Grain Marketing Board (GMB) to facilitate stop orders for key grains financed through AFC Holdings with GMB providing storage facilities for farmers. GMB is an off-taker for farmers who borrow from the bank particularly for maize and wheat,” continued Mr Macheka. added.

GMB has since communicated with their stakeholders their collaboration with AFC in assisting farmers with harvesting machinery and transport on a stop order facility and sharing the farmer data base as well as the entitlement of farmers accessing the AFC automated teller machine facility using the GMB farmer card.