President launches land bank
President Emmerson Mnangagwa recently launched the new land bank under the Agricultural Finance Corporation Holdings (AFC) a move which is aimed at spurring agriculture growth and formalising finance for farmers.
Speaking during the event held in the capital, the President said the bank would provide both short-term and long-term financing for farmers, ( small scale as well as commercial farmers) .
The support would include but not limited to infrastructure development, capacity building of farmers, irrigation and particularly agro-processing, and mechanisation .
Wholly owned by the government, AFC was launched following the rebranding of Agribank and comprises four subsidiaries: the AFC Commercial Bank, the AFC Land and Development Bank, AFC Insurance and AFC Leasing Company.
President Mnangagwa said the launch of the finance company was part of efforts to improve the operations of the agriculture sector in line with the National Development Strategy 1 and Vision 2030.
He also explained that the focus should now be on increased productivity, profitability and sustainability.
“This transformation will ensure maximum use of resources Zimbabwe is blessed with including fertile land, skilled human capital, abundant water bodies and beautiful fauna and flora, in order to improve livelihoods.
“The establishment of the AFC will therefore expand the provision of agriculture and rural financial services across the entire agriculture value chain, from communal, old resettlement areas, A1, A2 and large scale commercial farmers,” said the President.
It is anticipated that AFC will and bridge existing financial gaps .
The Land and Development Bank was called upon to provide long-term funding for water harvesting infrastructure and irrigation development among other meet needs.
“Through the insurance company, farmers must also be able to access affordable financial products and services, targeted at mitigating the effects of global warming and other risks, for resilient and sustainable agricultural production,” said President Mnangagwa who also challenged the AFC Leasing Company to expand its branch network, and conduct farming sector specific marketing campaigns for the services and products on offer.
The company was encouraged to embrace homegrown technologies to enhance productivity of farmers.
“Meanwhile, I urge farmers who will benefit from the various AFC financing facilities to embark on viable projects across the agriculture value chain. Growing exports and agro-industrialisation and the penetration of global value chains, must remain the main focus,” President Mnangagwa said.
He also urged farmers to create viable rural industries and invest in agriculture infrastructure.
The President however issued a strong warning on corruption which he said would not be tolerated in accessing loans. President Mnangagwa called on AFC to ensure that it had robust mechanisms that ensure loans were repaid.
Meanwhile President Mnangagwa as a show of confidence was the first person to open an account and transact with the Land and Development Bank.
Speaking during the same event Finance and Economic Development Minister Mthuli Ncube said AFC Holdings was designed to expand financial inclusion of all categories of farmers.
He explained that the subsidiaries had a critical role to support farmers in their operations and that this was to be a priority area.
The minister said the government was exploring other means to strengthen its balance sheet by transferring unencumbered state land to its possession.