A developmental financier, IDC South Africa has extended a US$30 million line of credit to Agribank to assist in the recovery of Zimbabwe’s agricultural sector.
The facility, which was approved by the South African based Industrial Bank directors today, will provide foreign exchange to productive sectors.
Agribank CEO, Mr Sam Malaba said the credit line bears testimony of regional financial lending agencies’ confidence on Zimbabwe’s economy.
“Indeed the facility has been approved and very soon, we shall start lending it to the relevant beneficiaries in the economy,” he said.
Apart from the IDC South Africa facility, the state owned agricultural bank is now in the market to raise $40 million through agrobills to support farmers during the 2018/19 cropping season.
“We are not in the process to support the entire farmers and we shall unlock more in this economy,” Mr Malaba said.
According to the 2018 national budget statement, the agriculture sector is also expected to play an important role towards the achievement of a projected six percent economic growth rate by year end.