Zimbabwe Agribank Disburses Tobacco Funds

Source from:  New Ziana. By ANDnetwork .com July 13, 2006 07/14/2006

Agribank has started disbursing loans to finance the 2006/07 tobacco crop as it moves to ensure timely provision of funds to smallholder farmers. The bank, in conjunction with the Tobacco Industry and Marketing Board, are running the funding scheme in which TIMB purchases inputs on behalf of farmers while Agribank provides working capital. The scheme has been running for more than three years. TIMB deputy general manager, Mr Godfrey Bhuka, said on Tuesday that the two institutions were striving to improve tobacco funding this year. "We already have people benefitting from the scheme," he said. "Farmers have started collecting funds and we are aware that some farmers are already establishing seed beds for the coming season." He advised farmers to finish preparing their seed beds before the end of August to ensure timely planting. The beneficiaries of the scheme, who are mainly smallholder farmers in A1, resettlement and communal areas, produce an entirely rain fed crop. Mr Bhuka said they expected to disburse $5 trillion in loans to growers this year. He also commended suppliers for the improvement in the availability of inputs in the face of ongoing foreign currency shortages. "There is much improvement in the way things are going this year. We are getting almost all the necessary inputs we are ordering," he said. There have been complaints in the past about the late disbursement of funds to growers with players blaming this for contributing to low tobacco production. Despite a decline in production over the years, tobacco remains one of Zimbabwe's largest foreign currency earners. Last year, the country earned more than US$140 million from the crop. Enditem