A local bank has remodeled agriculture financing from short term to medium and long term financing a situation that started reducing exposure on non-performing loans as farmers are given more time to concentrate on farm productivity.
The bank is undertaking commercial agriculture financing albeit under long term conditions to enable farmers to fully operationalise as the large chunks of loans advanced to farmers goes towards purchase of equipment and other farming essentials before production can actually begin.
Speaking on the sidelines of ARDA Muzarabani estates tour, Agribank Chief Executive Officer Mr Sam Malaba said they have chosen this long term agriculture financing as it is sustainable and mutually beneficial to the farmer, the bank and more importantly the country.
Mr Ken Drummond, the beneficiary of this remodeled financing structure that has enabled ARDA Muzarabani to be operational called on the bank to continue extending this gesture to farmers across the country to achieve the much needed economic growth through agriculture
Lack of agriculture financing has been blamed for low productivity, hence the path taken by Agribank is expected to bear positive fruits in the not so distant future.