Mechanisation and irrigation projects initiated by
Government are not for free and beneficiaries will be expected to pay back
loans, with all loans being issued through banks using banking criteria of
creditworthiness, Lands, Agriculture, Water and Rural Resettlement Minister
Perrance Shiri said yesterday.
Minister Shiri said only farmers with a proven track record
and capacity to pay back loans will benefit from the Government-initiated
mechanisation and irrigation programmes now being spearheaded through banks.
Government was able to help get the best pricing and
supply, but financing was through individual deals between banks and farmers.
Under the Second Republic, mechanisation and irrigation
programmes include the John Deere facility and the Belarus irrigation facility
and these are all based on cost recovery.
The John Deere Mechanisation facility, which is aimed at
achieving the Agricultural Recovery Plan, is meant to ensure Zimbabwe achieves
self-sufficiency in the production of cereals.
The facility included tractors, combine harvesters,
planters, disc harrows, boom sprayers and trailers, among other implements.
Under the Agriculture Recovery Plan, it is expected that 5
000 capable farmers with a proven track record on cereal production will be
contracted.
The farmers will be supported through access to irrigation
infrastructure development, mechanisation and input support as well as enhanced
extension services.
Minister Shiri said the selection of beneficiaries is now
based on creditworthiness of farmers as assessed by banks and no one will
interfere. Banks will use their know-your-customer systems.
“We have roped in banks and everything is now in the hands
of banks. We are working with CBZ, Stanbic Bank and Agribank. Agribank will
also be establishing a special equipment leasing vehicle for the purposes of
mechanisation service provision for combine harvesters,” he said.
Minister Shiri said Government had deliberately come up
with policy to ensure accountability and transparency. The payment modalities
and terms will be up to the banks.
Government could chip in to support productive sectors such
as the agriculture sector, but programmes such as the Command Agriculture and
the Presidential Inputs scheme should complement the initiatives of an
individual farmer.
“There is no free lunch under the Second Republic.
Government is taking advantage of its reach and negotiating capacity to get
equipment for farmers at reasonable prices and farmers are expected to pay.
“There is no free lunch. The projects are on a cost
recovery basis,” he said.
Government is ready to help capacitate farmers so the
country are able to produce enough food to meet the national requirements with
a surplus for export.
The agriculture sector employs 70 percent of the country’s
population, produces raw materials for the manufacturing industry and
contributes immensely towards the Gross Domestic Product and foreign currency
earnings.
Said Minister Shiri: “The responsibility of equipment of
farmers lies with the farmers.
“For instance, tobacco growers are getting 50 percent of
their earnings in foreign currency. This is not for luxury, but resources that
should be channelled towards building greater capacity.”
Government has entered into a number of contracts with
suppliers of equipment. For irrigation, Pedstock has been engaged on a number
of centre pivots. Herald
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