eBusiness Weekly
BH24 Reporter
HARARE – Agribank has increased sugarcane support fund to around $3, 5 million this year from $2, 1 million last year as part of efforts to boost sugar exports and curtail imports.
The fund will help Hippo Valley farmers and small scale farmers in the surroundings to increase sugarcane output in the Lowveld area of the country.
Agribank CEO Sam Malaba recently told this publication that the bank will continue to support farmers to revive sugarcane production in the country.
“Agribank is the largest financier for sugarcane smallholder farmers in the Lowveld and will once again provide substantial financial support to sugarcane farmers.
An amount believed to be around $3, 5 million will be extended to sugarcane farmers which is an high jump from last year’s support of $2, 1 million.
“The bank will continue to work closely with smallholder cane producers in all areas in the Lowveld,” Mr Malaba said.
He said support to smallholder farmers would produce several benefits for the country, including food security.
He said deployment of resources would take serious consideration of the ability of recipients to repay loans.
“Targeting smallholder farmers will ensure that they are funded. In the medium and long term, this will lead to increased industry capacity utilisation, reduce imports and increase exports,” he added.
Agribank will also target financing farmers in smallholder irrigation schemes, smallholder soya bean and potato farmers and banana and beans farmers among others.
He said Agribank would take part in the Reserve Bank of Zimbabwe funding programmes such as the $20 million horticulture facility as well as the $10 million value chain facility.
“We will focus on the value chain, especially smallholder sugar cane farmers because they do not side market their produce. Once they deliver, we are paid,” said Malaba.
The bank prefers smallscale holder farmers as they have the ability to service loans upon delivery.
He also said the bank will also work on backward linkages to finance growers and link them to the fresh produce farmers market.
Meanwhile, Government through Agribank has come up with a $28 million loan facility to support small scale tobacco growers and to maintain the auction system.
The facility, which will be supported by Agribank, is aimed at reviving the tobacco auction system which of late, had been overtaken by the contract system whose structure some farmers bemoaned.
The continuous dominance of tobacco sold under contract farming system is threatening tobacco sector the same way it did to cotton over the past years and the Agribank facility will ensure that does not happen
