Zimbabwe: Agric Sector Welcomes Government's US$490 Million Boost

Source from:  The Herald (Harare) September 15, 2006 09/18/2006

ZIMBABWE'S agricultural sector is poised for growth following the unveiling of the US$490 million foreign exchange facilities to finance the summer crop. While concerns have been raised over the country's preparedness ahead of the forthcoming season, agriculture experts say the credit facilities have come at the right time and would go a long way in enhancing agricultural productivity, which has declined by up to 70 percent, according to some estimates. The latest developments were ample demonstration of the Government's commitment to revive the sector, which is the backbone of the economy, they said. But observers were quick to recommend that water-tight mechanisms be put in place to ensure that only genuine farmers benefited. "It is really a major step in the direction of turning around the fortunes of our agricultural sector," said economic commentator and farmer Mr Jonathan Kadzura. "But these inputs should be distributed in a transparent manner if Zimbabwe is to reap meaningful benefits from these facilities," he added. Mr Kadzura recommended severe penalties on those bent of abusing the facilities while an efficient follow-up system should be put in place. Agricultural productivity has taken a tumble in the past five years, with much of the blame being heaped on the unavailability of inputs, mostly seed, fertilizer, chemicals and fuel. This was the case last year, when despite the good rains, tobacco and other crop yields were down on figures recorded in some drought years. The latest loan facilities, which were negotiated under the auspices of the National Economic Development Priority Programme (NEDPP), will be channelled towards working capital and imports of critical agriculture inputs such as seeds, chemicals, fuel and fertilizer. Agricultural economist Mr Midway Bhunu was among those who welcomed the loan financing facility. He said: "Inputs have been a major problem during the past seasons and we are likely to see a boost in agriculture production. "It is also important that farmers should access inputs at affordable prices but this can only be achieved when the animal of corruption is flushed out of the system," he advised. An official with the Zimbabwe Farmers' Union, who did not want his name published, said distribution of the inputs should be done without political strings. Zimbabwe this week clinched a US$200 million agro-support facility with China which will go towards the immediate payment of agricultural equipment, chemicals and other critical requirements. The Chinese facility is one of several agreements signed by the Government and central bank in recent months. The foreign partners include Intshona (biodiesel manufacture), BNP (fuel), PTA Bank and Afreximbank in partnership with local banking institutions Stanbic, NMB and ZABG. PTA has approved a US$10 million toll manufacturing facility for fertilizer with te first consignment of ammonia expected to arrive by end of this month. Also coming on board this week was the US$45 million PTA-Afreximbank facility following the signing of a Memorandum of Understanding between the two banks and Zimbabwe in Namibia last week. Enditem