Farmers have started applying to access the US$30 million revolving fund, which was availed by the Government under the International Monetary Fund (IMF) Special Drawing Rights, said Horticulture Development Council (HDC) Chief Executive Officer, Linda Nielsen.
The US$30 million horticulture revolving fund was launched last September to capacitate local farmers in boosting production and tackling challenges related to the unavailability of appropriately structured financing for short to long-term expenditures.
Nielsen said the fund is expected to drive enhanced value addition and beneficiation of fresh produce, which will in turn strengthen Zimbabwe’s exports of horticultural produce and farmers have started accessing the funding although uptake is still slow citing certain reservations.
“There has been a slow uptake of the fund as traditional financing models do not necessarily suit horticulture production, particularly where long-term, patient capital is required, that is plantation crop, we (recently) had a seminar with funders, farmers, and facilitators, HDC presented a framework for an inclusive funding model for plantation crops, which require patient capital and lower interest rates.
“HDC will continue working with stakeholders as we believe that with the right funding model and policies to support it, this industry could see exponential growth,” she said.
Neilsen added that their sector fully welcomes the revolving fund as it bridges the provision of the much-needed working capital to fund horticulture production.
She, however urged commercial banks to partner with them in coming up with innovative funding solutions to include the “un-bankable” farmers who do not have collateral and for models that would encourage the inclusion of women and youth.
“This will go a long way in attracting further investment into the revolving fund to reach a greater number of producers and spur the growth of emerging export producers,” said she said.
Increasing horticultural production through value addition and beneficiation is in line with the National Development Strategy 1 (2021-2025), whose main objective is to structurally transform Zimbabwe’s economy from one highly dependent on the export of agricultural raw materials to an economy trading in high value processed goods.
Under the Horticulture Recovery and Growth Plan, the sector is projected to contribute export earnings of US$300 million per year, at least by 2030, up from an estimated US$77 million.
