CBZ PLOUGHS $50M INTO FARMING:
CBZ Holdings has set aside $50 million for the 2017/18 farming season to fund small and largescale farmers in a bid to transform the agriculture sector.
This comes as the banking sector has offered to fund this farming season to the tune of $1.1 billion.
The CBZ loan will be accessed at 12 percent per annum, which is significantly lower than what is being offered by other financial institutions.
Of the fund, over $35 million is designed to help farmers acquire inputs such as seed and fertilisers and develop irrigation infrastructure, while $15 million is aimed at equipping smallholder farming techniques and overall productivity.
The Presidential Input Scheme valued at $153,1 million will cater for 1,8 million rural households.
Under the programme, cotton will be supported to the tune of $60 million, catering for 400 000 households with grain production taking up $52,9 million and the $80 million will be extended to oilseed crops such as soya beans.
Government expects inputs for the Presidential Well-Wishers Agricultural Inputs Scheme and Command Agriculture to be delivered to all farmers in Zimbabwe by September 30.
Smallholder farmers are seen as key to ensuring food security.
CBZ’s support for the smallholder farmers is in tandem with the Reserve Bank of Zimbabwe (RBZ)’s aspirations for financial inclusion aimed at embracing unbanked societies.
Mrs Laura Gwatiringa, the CBZ marketing and corporate affairs executive, told The Sunday Mail Business that the $50 million fund would improve productivity and general welfare.
“We have set aside $50 million for the 2017/2018 farming season. Applications are received from clients through our branch network in the country and received applications are assessed and analysed for project viability. If one qualifies then an agreement is reached and we fund through value chain financing. This has worked very well for our farmers and for the other value chain players and the interest rates charged range from 7,5 percent per annum to 12 percent per annum.
“We work with the whole spectrum of farmers in Zimbabwe from commercial farmers, A1, A2 and small-scale farmers,” said Mrs Gwatiringa.
In most instances the bank advances additional fees for other farming activities which include horticulture, wheat, maize, piggery, poultry, soya, cotton, dairy, beef and crocodile farming.
The funds will be meant for farmers that fell short during the summer cropping season.
Mrs Gwatiringa said the bank is still disbursing loans to farmers as the season is still in its infancy.
Agricultural experts believe the sector would grow by 12 percent on the back of the extended Command Agriculture scheme and improved irrigation facilities. CBZ pledged to continue helping farmers irrespective of the category a farmer belongs, whether small-scale or large scale farmer.
She continued: “We are currently sitting with a database in excess of 11000 farmers which makes us the biggest lender in the sector. All we do is ensure that we are ready to offer support for
each season by ensuring funds are available. The beauty is that these are accessible to the farmers through our very wide branch network of over 60 branches throughout Zimbabwe.”
Farmer organisations say many farmers are expected to plant in time due to the proliferation of irrigation schemes in most parts of the country.
But with good rains expected to this year, CBZ is likely to roll over to next season some facilities to farmers depending on their circumstances.
Mrs Gwatiringa said affected farmers’ positions will be analysed and “justifiable cases can be rolled over to the next season”.
CBZ has also moved to finance horticulture to boost exports and consequently generate foreign currency. The bank has since opened an agribusiness unit that specialises in offering financial solutions to clients to farmers.
Government has started distributing inputs worth $334 million for the 2017 /2018 command programmes to ensure all farmers under the scheme get inputs on time. The success of the Command Agriculture was not only anchored on better financial preparations and good rains, but also comprehensive monitoring and evaluation by teams drawn from different Government agencies at national level.