2010 farming input confusion | Opinion & Analysis

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2010 farming input confusion

Written by Zimbabwe Tobacco Today

Wednesday, 14 October 2009 13:03

HARARE - Speaking at the ministerial retreat in Nyanga on August 22-3, Tendai Biti, minister of finance, said that agriculture would drive the economy in 2010 and that adequate funding for the season would ensure this. (Pictured: Will there be farming inputs available for 2010? No-one seems to know)
“Communal and smallholder farmers will receive 10kg of maize and 50kg of fertiliser. There is US$68 million available for distribution in September,” the minister said. He emphasised strongly that communal and small-scale farmers were the engine of agriculture and the backbone of good supply to the nation. “Small-scale farmers are bigger in terms of output so it is important to cater for their needs.” He added that his ministry was on the verge of signing a contract that would ensure there would be seed on the market for large-scale farmers.
Agricultural Loans Input Scheme
The press announced, with fanfare, the Agricultural Loans Input Scheme, worth US$210 million, that would be available from the Grain Marketing Board. Their spokesperson, Joe Katete, said this was correct but the only depot he knew for sure had inputs was Mvurwi where vice-president Joyce Majuru had launched the scheme. He added that it was not for free, farmers should apply through their commercial banks. It is open to all farmers, communal to commercial and they should approach commercial banks that will in turn assess their credit worthiness before issuing release instructions.
“Beneficiaries will then present release orders to GMB prior to collection of the inputs. Only release orders from participating banks will trigger release of inputs, otherwise farmers will pay cash on collection from (the 84) GMB depots,” Katete said.
Most commercial banks did not reply to enquiries but MBCA Bank said it was urgently seeking meetings with the Reserve Bank and the ministries of finance and agriculture to clarify things. It cautioned that farmers would need loans for working capital as well as inputs for a successful season. Priscilla Sadomba, marketing manager at Stanbic said there was no specific financing available for farmers but if they were customers of the bank their applications would be treated like any other business request. “If our criteria are met and funds are available we will grant the loan,” she said. The terms? 5 per cent for 30 days.
According to media reports, CBZ is the lead bank for the loan. It doesn’t reply to press enquiries either but a source in the bank said that the ministry of agriculture had arranged inputs with South African suppliers on a credit guarantee backed by a first class Zimbabwean bank. “The supplier wanted the credit line guaranteed by a South African bank but we couldn’t achieve this. CBZ agreed to guarantee it: that’s why we are the lead bank,” he said. CBZ requires a recent offer letter, proof of performance history and security for each loan.
Now that returning CEO Nigel Chanakira has specified all the companies of his largest shareholder, the Meikles group, there isn’t likely to be much more money coming from that quarter.

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