By Nobleman Runyanga

Government has re-modelled the funding of Command Agriculture in a move that will see commercial banks and other private sector player’s bank-rolling participation in the programme. This was revealed by the Ministry of Finance and Economic Development in a statement issued this week.

“In line with the Transitional Stabilisation Programme (TSP) and the Budget Statement for 2019 the financing model for Special Grain and Oil Seed (maize, wheat, and soya beans) Production (Command Agriculture) has been transformed and now involves commercial banks and private out-grower schemes working with Government on a Public, Private Partnership (PPP) basis,” read part of the statement.

The Ministry further highlighted that three commercial banks had already joined the partnership.

“So far the banks that have entered into a partnership with Government include Agribank, CBZ...and Stanbic Bank(s). More banks are expected to join the programme, therefore bolstering efforts for domestic resource mobilisation,” the Ministry of Finance said.

Government explained that its role in the new Command Agriculture financing set up would be to provide guarantees to funders who would provide the necessary financial resources.

“In the main, Government will provide guarantees to...banks in order for them to lend to farmers on a commercial basis,” said the Ministry of Finance and Economic Development in the statement.

The re-modelling of the Command Agriculture programme is expected to revolutionise Zimbabwe’s agriculture which has not fully realised its potential to power economic recovery despite the land reform programme which saw over 300 000 families benefitting. The re-think on the funding mechanism comes on the background of poor repayment record on the part of past beneficiaries.