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Oliver Kazunga Senior Business Reporter

THE Agricultural Finance Company (AFC) plans to issue short-dated US$5 million agro-bills to finance this year’s winter wheat cropping season.

In a public notice, AFC said applications will be for a minimum US$10 000 per batch.

AFC Holdings is a State-owned one-stop shop for development finance, commercial banking, insurance and leasing with special focus on agriculture development.

“AFC Holdings Limited intends to issue short-dated United States dollar agro-bills of US$5 million to finance the agricultural activities for the 2023 winter wheat crop.

“AFC Holdings hereby invite local and international corporates and individual investors to subscribe to these agro-bills.

“Applications must be for a minimum of US$10 000.

“Copies of the application forms are available from AFC Commercial Bank Treasury, at Hurudza House or can be e-mailed upon request,” said the bank.

The bank said the agro-bills have special features that include Reserve Bank of Zimbabwe (RBZ) Exchange Control approval to remit funds that originated from offshore on maturity, prescribed asset status, liquid asset status, tax exemption, Government guarantee and AFC Holdings financial guarantee.

Meanwhile, farmers have so far put over 61 000 hectares under wheat this season against the targeted 90 000ha and the Government is optimistic that this year’s winter wheat target would be achieved producing no less than 420 000 tonnes against a national annual requirement of 360 000 tonnes.

The Agricultural Rural Development Authority (ARDA) targets to put 20 000ha under winter wheat crop this year, up from 14 018ha established in the prior year.

The authority is undergoing transformation to spearhead rural development, industrialisation to ensure national food, feed, fibre, biofuels and seed security for the attainment of Vision 2030 where the country would be transformed into an upper middle-income economy.

During the period of the old dispensation, most ARDA estates across the country were idle and underutilised owing to years of neglect and lack of investment.

However, ARDA’s fortunes have since taken a new trajectory and awakened from slumber since the Second Republic came to power in November 2017.  

Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka is on record saying the Government wanted ARDA to grow the total areas under crops from its 21 estates dotted across the country from 13 000ha to 88 000ha in the next few years.

The authority’s land holding portfolio straddles 142 000ha at all its estates and the Government wants the combined 88 000ha that is arable to be under different crops to strengthen the revitalisation of the agriculture sector.

A vehicle for food, fibres and bio-fuel security, ARDA has the potential to contribute 500 000 tonnes of cereals annually, 50 000 tonnes of fibre and a massive 250 million litres of ethanol.