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Agribank oversees US$102m facility

28 Jun, 2019 - 00:06 0 Views
Agribank oversees US$102m facility Sam-Malaba

eBusiness Weekly

Golden Sibanda

GOVERNMENT has assigned Agribank to manage distribution of imported farm mechanisation equipment valued at US$102 million to ensure transparency, efficiency and avoid abuse.

This comes as Government continues to make huge strides in efforts to modernise the country’s strategically important agricultural sector to enhance productivity and food security.

The agricultural equipment, which entails combine harvesters, tractors and planters, was procured under two multi-million deals; a US$50 million facility with US heavy equipment and farming implements manufacturer John Deere and a US$52 farm equipment deal with eastern European country Belarus, which now enjoys strong cordial relations with Harare.

Government has also assigned Agribank to handle a US$6 million livestock facility to improve the quality of the national breed and improve efficiency in the cattle ranching industry.

A little earlier, the Government had also concluded a multi-million dollar deal for the supply of key irrigation equipment with manufacturer and supplier, Pedstock Investments.

Lack of sophisticated farm equipment is considered one of the major factors constraining optimal performance of Zimbabwe’s agricultural sector, strategic to growth and development of the economy.

For instance, the Southern African country has a deficit of about 30 000 tractors, according to statistics from the Ministry of Lands, Agriculture, Water, Climate and Rural and Resettlement.

The Government also remains focussed on measures to empower the more than 300 000 ill-equipped households or farmers it gave land under the fast track land reform programme.

Agriculture is the backbone of Zimbabwe’s economy inasmuch as Zimbabweans remain largely rural farmers who derive their livelihood from agriculture and other related rural economic activities.

Agriculture provides employment and income for 60-70 percent of the population, supplies 60 percent of the raw materials required by the country’s industrial sector and contributes 40 percent of total annual export earnings. Deputy Minister of Lands, Agriculture, Water, Culture and Rural Resettlement, Vangelis Peter Haritatos said the equipment was expected in the country within the next few weeks.

“We will soon be channelling a lot of machines for farm mechanisation such as tractors, combines and planters through the various MoUs we have signed. We will channel through Agribank so that they can do the job of vetting the farmers that apply to benefit from these . . .  ” he said.

Deputy Minister Haritatos said the new arrangement was a good deviation from the past since it removed the function of distribution and monitoring from the ministry to an autonomous institution that can truly assess deserving beneficiaries who can or cannot pay back.

“So we are happy because that is going to be done independently in a very transparent manner and we encourage our farmers to take up the opportunity that has been given to them,” the deputy minister said.

He said that delivery of the agricultural equipment was expected in the next few weeks despite the nagging challenges around foreign currency required to pay for the facilities.

Deputy Minister Haritatos said that when he visited Balarus last month, 50 percent of the various equipment was ready to be shipped into the country after being manufactured.

He said efforts would be made to avoid mistakes of the past where undeserving beneficiaries received equipment and either diverted it or failed to utilise it productively.

“We do acknowledge that there were problems in the past and to avoid those problems going forward, we have ceded a lot of that responsibility to Agribank, who will work independently and transparently so that there is no links to my family members or family members within our ministry, it must be done on a commercial basis” the deputy minister said.

He said Government did not want to give the equipment to people who cannot use them productively on farms or cannot maintain them and likely to lose them before they have done their duty for the country.

Agribank chief executive officer Sam Malaba said they had been selected by the Government to be the distribution agent and to monitor the agricultural equipment to be given to farmers at relaxed terms and over medium term tenures.

“One of the reasons we have been asked is that we do proper due diligence on each beneficiaries; so that means we look at the track record of the farmer; production record of the farmer . . .” he said.

The Agribank CEO said the bank would also look up for prospective beneficiaries’ credit records in the credit registry at the Reserve Bank of Zimbabwe and applicants who are not paid up would not have their applications approved.

“If you have non-performing loans . . . you will not be able to access this funding; you must have cleared your books and we know then that you are credible. But apart from being credible, are you productive? So Government has asked us to manage the facilities and we do so in a transparent manner. Individuals go to our branches, they apply and they are assessed,” he said.

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