mushayavanhu bankers ass 03.08.10.jpgLocal banks are set to conclude a fertiliser payment facility with fertiliser manufacturing firms to assist farmers in purchasing the commodity at affordable rates.


The arrangement is being made after the realisation by the financial sector that local farmers are experiencing problems in raising funds to buy fertiliser due to the high prices of at least US$30 per 50 kg bag.


Bankers Association of Zimbabwe president, Mr John Mushayavanhu said local banks are in negotiations with fertiliser manufacturing  companies on a payment system that enables a farmer to pay a deposit fee of 30 % while the remaining 70 % will be guaranteed by the banks.


“ We are expected to conclude the finer details of the entire scheme by end of this week and we hope this will translate into something favorable. In terms of the proposed deal, the farmer will pay 30 % of the commodity, while banks will guarantee the payment of the remainder upon the sale of the produce ,” said Mr Mushayavanhu.


With the 2010- 2011 farming season having already started, concern is being raised as to whether the private sector can also help government in facilitating the availability of inputs at affordable rates.


The Ministry of Finance recently announced a US$54 million agricultural facility for A2 farms that will be disbursed through banks.