Minister of Lands, Agriculture, Water, Climate and Rural Resettlement, Air Chief Marshal (RTD) Perrance Shiri has said as part of the government’s urge to enhance food security it has made a decision to fund the 2019/20 Special maize and soya bean programme through banks.
Government has entered into a partnership with banks in a move to improve food security.
”Government has so far entered into partnership with Agribank, CBZ bank, Women’s bank and Stanibic bank. These banks will support AI, A2 and other large scale farmers in soya bean and maize production,” said Minister Shiri.
The Minister said farmers interested in accessing inputs under the CBZ facility including working capital should approach local district AGRITEX offices for registration, vetting and contracting for production and the bank will then contact them back for the processing off the financial contracts.
”After that initial process the bank will contact all contracted farmers for the opening and processing of their financial contract at their nearest CBZ branch,” he said.
All contracted farmers will be monitored.
“CBZ bank, Ministry of Lands, Agriculture, Water, Climate and Rural Resettlement and Ministry of Finance and Economic Developmemnt shall monitor all contracted farmers until the crop is harvested,”he said.
Collateral is not required as the verification would have been done by the Ministry of Lands, Agriculture, Water, Climate and Rural Ressettlement.
The tenure of the loan is 270days at an interest of 10.5% per annum and an upfront fee of 2.25%.
The upfront fees are part of the loan draw down.