Zimbabwe farmers get fertiliser deal

Nov 04, 2010

Farmers in Zimbabwe are to benefit from a new credit facility being offered by banks and fertiliser firms.

Under the terms of the deal, growers are given fertiliser then allowed to repay the costs once they have sold their produce, government-published newspaper the Herald reports. The offer has been introduced after many individuals in the agriculture sector complained about the difficulty of accessing credit to finance their operations.

John Mushayavanhu, President of the Bankers Association of Zimbabwe, explained the agreement sees banks pay for 30 per cent of the fertiliser procurement cost and guarantee the balance. "Farmers will repay the loan at the end of the season," he remarked. Statistics from the Reserve Bank of Zimbabwe indicate around 20 per cent of the $1.42 billion (€1 billion) that had been lent to the public as of October 22nd went to the agriculture industry.

Sourcing agriculture finance has been difficult for farmers across Africa, with the Daily News reporting producers in the Morogoro region of Tanzania have voiced their worries over the funds that are available to them.