Harare – In one of its key strategic initiatives for FY19, State-owned agriculture financier, Agribank, says it will continue its mandate for viable agriculture financing and development, enhancing output and productivity for both smallholder and commercial farming.
Agribank, which was recently directed by Government to increase its support to agriculture, say it plans to expand support towards agriculture, with special focus on food security and foreign currency generation.
Agriculture remains the core of economic recovery and growth in Zimbabwe, accounting for nearly a fifth of output and about a quarter of exports.
In his presentation of the financials for FY 18, CE Sam Malaba said the bank will continue to raise agro bills every summer cropping season.
Agro bills have a tenor of 270 to 360 days, have a Government guarantee, prescribed asset status, liquid asset status and tax exemption.
For 2018/19 season, the Bank together with FBC raised $40 million agro bills, a 100 percent increase from $20 million raised in 2017/18 season, funding which will enable it to increase funding agriculture.
The Bank also received $6 million livestock facility in 2018 from the shareholder earmarked for restocking and growth of the country’s livestock.
Malaba said the Bank successfully concluded some offshore lines of credit to support in particular the agricultural sector and its value chain.
“The Bank secured US$10 million from Afreximbank in 2018, which will be channelled towards capacitating agricultural exporters and value addition. The Bank also secured $20 million local facility from Afreximbank.
“The bank will continue partnerships with major indigenous tobacco industry players, merchants and help generate currency.”
Agribank supports tobacco value chains with a total funding of $49.2 million to merchants in 2018, TIMB for small holder farmers and contract growing and this has resulted in increased exports and foreign currency generation.
In his presentation the Bank will continue to support the horticulture sector, cotton sub sector, soya beans and small grains.
Additional, the Bank will support maize production, in particular funding will also be targeted towards seed houses as well as seed research institutions such as SIRDC, in addition to traditional support for fertilizer companies (Windmill, ZFC) and chemical companies such Chemplex.
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