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Gvt unveils a $20m loan facility for wheat
10 April 2012
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Zimbabwe Minister of Finance, Tendai Biti
Tendai Biti

Harare(ZimEye)-The government of Zimbabwe through the ministry of finance has unveiled a $20m agricultural loan facility to improve the winter wheat output which had declined sharply over the years owing to lack of proper financing and implementation mechanisms by government.
Addressing a joint press conference on the financing of the winter wheat program, Finance Minister Tendai Biti (MDC) and Agriculture, Mechanization and Irrigation Development Minister Joseph Made (Zanu (PF)), the two ministers told journalists that the financing of the program, “will be based on cost recovery basis with a view to establishing a revolving fund in line with the three year rolling financing Strategy proposed through the 2012 budget statement.”

Unlike in the previous years where farmers would get agricultural inputs at subsidized costs, the current scheme is designed in such a manner that the farmers won’t be getting freebies from government as has been the norm with the previous Zanu (PF) governments which campaigned using the inputs to gain political mileage.

Under the current arrangement, the two Ministers have said the government will facilitate the full supply of agricultural inputs by suppliers under the running contract valued at $15m while a balance of $5m would be financed from the 2012 budget.
It is also under the current arrangement that the Agriculture Ministry will be responsible for the implementation modalities while the same Ministry through the Grain Marketing Board will monitor the program by the upkeep of an audited register of participating farmers to avoid corrupt tendencies.
However the two Ministers are on collision course with the Energy Ministry headed by Elton Mangoma where they have appealed to his Ministry to consider the supply of electricity to the farmers despite concerns that they are failing to settle their bills since they settled on the farms more than ten years ago with ZESA disconnecting all defaulters.
“In unveiling the above facility, it is critical for our Ministry of Energy and Power Development and ZESA to make the necessary arrangements to ensure adequate supply of electricity to wheat growing areas. Failure to do so will result in undesirable performance of the program and loses to farmers,” said Minister Biti.(ZimEye, Zimbabwe)

3 Replies to “Gvt unveils a $20m loan facility for wheat”

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  2. Rubbish, whos fooling who here? Everyone knws u cnt do wheat wthout zesa and mangoma has keys 2 that. U think Mbiti is goin 2 release that money knowing that money is not gonna come bek coz no zesa. Even if they sabotage us, we fail 2 utiliz the land it wil stil remain ours 4ever.

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