Staff Reporter
Government is set to revamp the operations of the local horticulture industry by injecting a massive US$30 million to support export-oriented horticultural production companies with their foreign currency requirements.
Speaking to the media after the 39th Cabinet meeting yesterday, the Minister of Information, Publicity and Broadcasting Services, Senator Monica Mutsvangwa, said that Cabinet considered and adopted proposals on the Establishment of the Horticulture Export Revolving Fund in line with the Horticulture Recovery and Growth Plan.
“Cabinet considered and adopted proposals on the Establishment of the Horticulture Export Revolving Fund as presented by the Minister of Finance and Economic Development, Honourable Professor Mthuli Ncube. The Horticulture Export Revolving Fund will be financed to the tune of US$30 million in order to support export-oriented horticultural production companies with their foreign currency requirements.
“It will be recalled that Government has proposed to use part of the Special Drawing Rights (SDRs) received from the International Monetary Fund (IMF) to support the productive sectors of the economy. In the agriculture productive sector, priority has been placed on horticulture and irrigation development. Treasury has, therefore, engaged stakeholders in the horticulture export sector on the modalities for the establishment of the Horticulture Export Revolving Fund, in line with the Horticulture Recovery and Growth Plan,” said Minister Mutsvangwa.
The Minister said that the Horticulture Export Revolving Fund will address the major challenge of unavailability and lack of access to appropriately structured financing for short to long-term expenditures. She added that the Fund will close the funding gap in the value addition and beneficiation of fresh produce, which has resulted in horticultural value-chain margins being unsustainably squeezed.
According to Minister Mutsvangwa, the Second Republic intends, through the revolving Fund, to restore Zimbabwe’s horticultural industry former glory where it was among the top three horticulture producers in the world after the Netherlands and Equador up to 2002.
Minister Mutsvangwa further informed that the facility will be accessed through the normal banking channels, with applicants or intended beneficiaries submitting their requests to participating banks with the requisite information. Government and the participating banks will also monitor and evaluate the use of resources advanced to borrowers.
The Minister also said that the Fund will be beneficial to farmers as it will ensure the capacitation of ZimTrade and the Agricultural Marketing Authority (AMA) to enable them to open up verifiable markets for horticultural farmers.
