Lack of funding is hampering Zimbabwe’s agriculture recovery prospects amid revelations that farmers are failing to access money from the financial sector ahead of the beginning of the 2016/17 agricultural season.
BY VICTORIA MTOMBA
Statistics show that the country requires $2 billion in order to have a successful agricultural season.
Zimbabwe Commercial Farmers’ Union president Wonder Chabikwa said there was little activity on the ground due to funding constraints.
He said most farmers had registered for support under the government command agriculture programme, which is distributing inputs to farmers. Under the $516 million command agriculture plan, government aims to put 400 000 ha under maize and produce two million metric tonnes of grain — enough to meet the national grain requirements for a year.
“We expect land preparation to be completed by next week for farmers under the command agriculture programme. We should be more prepared than we are today,” he said.
“It’s difficult for us to say if the money will be availed, but we know the financial sector said they availed $1 billion, most of which will be taken by contract farming. There will also be personal funds, which will take it to about $1,5 billion,” he said.
Commercial Farmers’ Union acting director Marc Wilson said farmers had not been able to access funding this season as they did not have collateral.
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“From our experience, we haven’t been able to get finance with the 99-year leases as banks still have reservations on the transferability of the 99-year leases. Unless farmers have urban assets, they will have to procure inputs for cash, unless the suppliers are willing to take the risk through contract farming,” he said.
Wilson said there was need for a new financing model for farmers to get credit, stressing that security of tenure had to be addressed.
Chabikwa said while the country should utilise about two million ha of land during a good season, 400 000 ha would only be utilised so far under the government-led command agriculture. Cotton farmers would take up 400 000 ha while smallholder farmers’ figures were not yet available.
Chabikwa said government was already availing cotton farmers with inputs according to Treasury statements.
He said command agriculture would go a long way in increasing output and land utilisation this season.
Chabikwa said the prices for inputs were higher in Zimbabwe compared to other countries in the region, which also gave subsidies to farmers, an arrangement that was not available for Zimbabwean farmers.
The Meteorological Services Department has said the country is expecting to receive normal to above normal rainfall this season and the rains are expected at the end of October in some areas and later in other areas.
The financial services sector availed $1 billion to the agriculture sector last year. Efforts by Standardbusiness to establish how much the financial sector would avail in support of agriculture this year drew blanks as banks were not ready to release figures.
Agribank chief executive officer Sam Malaba declined to give figures on how much the agricultural bank would spend for this season owing to competition in the market.
Last year, the country experienced a severe El-Niño-induced drought, which was experienced throughout southern Africa.
