2014
09/22

Category:
Establishing Credit

TAG:

COMMENTS:
Comments Closed

Govt to Mobilise U.S. $250 Million for Farmers

Minister Chinamasa said government had also engaged the banking sector to increase its lending to farmers.

Government acknowledges the role of the banking sector in supporting A2 and other farmers in view of its limited financing capacity. In this regard, the Reserve Bank has engaged the financial services sector in establishing credit facilities under direct bank credit extension to the farmer.

Furthermore, contract farming arrangements will also be available to finance crops such as tobacco, cotton, soya beans, barley among others, he said.

Minister Chinamasa said realising the importance of input suppliers in the agricultural chain, government had made efforts to capacitate suppliers ahead of the forthcoming farming season.

Already obligations related to outstanding debts to input suppliers have been extinguished through a combination of both cash payments and Treasury Bill issuance to the tune of $27,4 million, with a further $30 million in TBs being issued in consultation with CBZ, he said.

Zimbabwes agricultural sector, which had declined over the past decade mainly due to limited funding and poor rainfall patterns, is on the recovery path with output of crops such as maize and tobacco exceeding targets.

Maize output last year reached 1,46 million tonnes from the original target of 1,3 million tonnes while tobacco output surpassed the initial target of 171 million kilogrammes to reach 215,2 million kilogrammes.

Comments are closed.