(TALKZIMBABWE) US$260mln loan for agric season

US$260mln loan for agric season
Nyasha Muringisis
Mon, 13 Jul 2009 08:42:00 +0000

THE Bankers Association of Zimbabwe has set up a US$200 million loan facility to finance tobacco and cotton growers for the 2009/10 farming season. The loan will support the agricultural sector.

This loan is in addition to a US$60 million loan facility received from a Tunisian Africa Bank to boost tobacco production. The two cash crops are emerging as the country’s major foreign currency earners.

President of the Bankers Association of Zimbabwe, Dr John Mangudya announced the news of the loan facility at a recent conference.

"The loan facility is meant to make sure that all farmers will increase their production levels and it is the duty of the banking sector to avail loan facilities.

"We are the financial mirror of the economy," he said, adding that "Farmers should deposit their money with banks. It should be a win-win situation.

"There is no single farmer who is going to grow their crops without accessing funds. The funds are available as a loan facility to tobacco and cotton growers," said Dr Mangudya.

Meanwhile, 65 000ha is expected to be put under tobacco production this year and farmers are expected to start preparations if they are to get high yields at the end of the season.

Cotton is one of the country’s strategic crops with its contribution to the country’s total earnings in the region of US$150 million annually.

This year’s tobacco crop is expected to generate US$100 million.