Zimbabwe’s Farmers Experience Problems Obtaining Loans

Source from:  Tobaccoreporter.com, July 26, 2004 07/27/2004

Tobacco farmers in Zimbabwe are having problems securing loans under the productive sector facility, according to Njodzi Machirori, chairman of the country’s tobacco industry and marketing board. “Loans under the productive sector facility are on a six-month tenure whereas tobacco is an 18-month crop,” said Machirori. He said another problem is with the banks, who say they need more security because of the risk in issuing collateral. Many of Zimbabwe’s large-scale producers have been replaced by small-scale farmers over the past several years. Small-scale farmers rely on financial assistance such as that from the productive sector facility. Some tobacco companies have also provided financial support.