by Grace Chekai
Cabinet yesterday approved the proposed remodelling of Agribank (Pvt) Limited, which is in line with realising Vision 2030 owing to its contribution to the economy and agriculture in particular.
The Cabinet approved the remodelling of Agribank after noting that the establishment of a vibrant and diversified rural financial service, which are underwritten by a Land Bank or its equivalent will be an important step, which the country should take in order to move towards upper middle income status.
The Minister of Lands, Agriculture and Rural Resettlement, Dr Anxious Masuka said, “This is in view of the realisation that smallholder farmers comprising Communal ,Old Resettlement, Small-Scale Commercial and A1 farmers constitute 99 percent of the farming population, holding up to 95 percent of the productive land and owning over 90 percent of the national livestock herd.”
The Minister informed Cabinet that the remodelling of Agribank Pvt Limited as a dedicated Land Bank is expected to deliver a number of specific outputs.
“It will strengthen and diversify existing agricultural and rural financial services for sustainable agrarian reform for accelerated development.
“The bank will also provide investment support for A1,A2 and small scale commercial farmers who have not been supported by commercial banks.
“It will link currently under-utilised land to structured markets and established value chains supplying factories, supermarkets and export markets and also provide working capital for the construction of agricultural infrastructure as well as for value addition and beneficiation enterprises.
“The financial institution will mobilize private sector finance in order to contribute to job creation, food security and social protection in rural communities,” he said.
The Cabinet then agreed that Agribank be remodelled and re-organised to perform the functions that the Agricultural Finance Corporation, used to perform, of offering financial assistance to farmers in the form of short, medium and long-term loans, and that a Task Team comprising, the Ministers of Finance and Economic Development; Industry And Commerce; Lands, Agriculture, Water and Rural Resettlement; the Attorney-General and the Reserve Bank of Zimbabwe be set up to look into the modalities of reconfiguring Agribank into a Land Bank.
