Maravi

(HERALD) Agriculture needs US$2,5bn annually

COMMENT - And let me guess how the MDC wants to infuse $2.5 'per year' into agriculture - foreign investment. Which means foreign ownership. We have not seen this massive investment, and yet harvests are rebounding from the MDC's destruction of the Zimbabwe Dollar through ZDERA.

Agriculture needs US$2,5bn annually
Tuesday, 29 November 2011 00:00
Golden Sibanda Senior Business Reporter

AGRICULTURE requires US$2,5 billion annually to ensure adequate support for grain, cash crops and livestock production, Finance Minister Tendai Biti has said.
Presenting his 2012 National Budget Statement last week, Minister Biti said grain by itself required US$702 million. To enhance farmers' planning and preparedness Minister Biti has proposed a three-year rolling financing strategy for 2012, 2013 and 2014.

He said aligning budget provisions with requirements and timing of the summer cropping season allowed for "timeous" and adequate preparations.
"Accordingly, during the first quarter of 2012, I will be announcing the detailed financing structure of the agriculture three-year rolling financing strategy, tapping from both public and private sources," he said.

And the issuance of leases to A2 farmers is expected to unlock more funding from banks, thereby increasing private sector support to the sector.
But the minister said increased private sector participation in agriculture was largely dependent on surveying sub-divisions to the farmland.
He pointed out that surveying of farm sub-divisions and issuance of bankable leases created value for land and assured farmers of property rights and security of tenure, which should boost agricultural productivity.

"I propose to allocate US$2 million towards speeding up the undertaking of A2 farm sub-divisions," he said.
"This will be complemented by (financial) contributions from individual farmers themselves."
Agriculture is central to Zimbabwe's economy, contributing 16 percent to the gross domestic product, apart from being the country's biggest employer.

In addition, agriculture supplies 60 percent of raw materials for the manufacturing sector which in turn supplies 65 percent of agricultural inputs.
It is against this background that the Government has set up a number of financing facilities for the 2011/2012 agricultural marketing season.
Five hundred thousand farmers will thus access subsidised inputs under a US$45 million facility, which would also cover 100 000 vulnerable groups.

About 250 000 communal farmers will be supported under a US$20,3 million subsidised input scheme while 150 000 A1, small-scale, old resettled and A2 farmers will also benefit from a US$17 million facility.

The Government has made US$30 million available for the sector under a grain input swap facility after securing credit from agriculture input suppliers.
This facility is meant for farmers with outstanding payments from the Grain Marketing Board and they would access the inputs at market value.
The Government discussing with the banking sector a US$100 million agro-bills facility to complement its financial schemes.

Already, it has partnered with CBZ Bank
for a US$20 million fund for the Agricultural Marketing Authority Bills to support production of soya-bean.

Minister Biti has also set aside US$15 million for the rehabilitation of irrigation equipment targeting about 56 schemes.
A total of US$16,6 million has also been earmarked for agriculture research and extension services.

Agriculture in Zimbabwe has often suffered from chaotic preparations, lack of funding and shortage of inputs, compromising national food security.

Labels: AGRICULTURE, MDC, NEOLIBERALISM, TENDAI BITI

posted by MrK @ 7:28 PM