Zimpapers Logo

Herald Reporter

Agribank has done well to fund agriculture under challenging circumstances and Government plans to continue providing resources to the bank to increase production.

Deputy Accountant General Mrs Memory Mukondomi, who was representing the Secretary for Finance and Economic Development, Mr George Guvamatanga, yesterday told Agribank’s annual general meeting in Harare: “Yes, we are happy with the role that Agribank is playing in supporting our agriculture. We will continue to support the bank so that it supports more farmers.

“A lot can be done, but we need to take into consideration the challenges that the country is going through.”

Agribank acting chief executive officer Mr Elfas Chimbera said they will continue to lend to the agriculture sector, despite concerns over non-performing loans.

“We are an agriculture bank and we will continue with our mandate of financing agriculture, so we will not shy away, but smart lending will keep our non-performing loans down to the expected rate of five percent,” said Mr Chimbera.

Agribank will establish a special equipment leasing vehicle to allow all farmers to use mechanisation, especially combine harvesters.

Mr Chimbera said the combine harvesters will be available at affordable costs to farmers that require the equipment, but cannot afford to buy their own.

Agribank is 100 percent owned by Government and its key mandate is to financially support farmers to ensure food security and generate foreign currency through exports.

For the year 2019, Agribank declared a dividend of just over $15.6 million to Government.

Government has a deliberate policy to support agriculture as it plays a central role in the economy through contributing 20 percent to the country’s GDP, 33 percent of formal employment, 65 percent of raw materials required in agro-industries and accounts for 70 percent of rural livelihoods.

Launching the US$51 million John Deere farm mechanisation facility recently, President Mnangagwa said agriculture was a pathway out of poverty and a condition for economic growth and prosperity of the country.

“Cognisant of the importance of the sector, my Government has made agriculture transformation and attainment of food security one of its key priorities,” he said.

“Hence, the launch of this facility is timely and part of the journey we embarked towards the realisation of these objectives. It further attests to the commitment by Government to work with various partners and investors, guided by the Zimbabwe is Open for Business mantra, to grow and prosper our economy so that our people enjoy better quality of life.

“The coming in of John Deere Agriculture Worldwide into the agriculture value chain also bears testimony to the success of our engagement and re-engagement policy.”

The John Deere facility through a local agent, Afgri Zimbabwe, will unlock 1 300 tractors, 80 combined harvesters, 600 planters, 200 disc harrows, 100 boom sprayers and 100 trailers.

The facility will be used mainly by 5 000 farmers under the National Agriculture Recovery Plan, while the selection of beneficiaries will be based on credit worthiness of the farmers as assessed by CBZ and Stanbic Bank.