Business / Economy
Govt allocates US$150 million to boost flagging agriculture sector
05 Sep 2012 at 05:33hrs | Views
Finance minister Tendai Biti said the government is working on a US$150 million facility to finance the upcoming 2012/13 agricultural cropping season.
In the past, the government has been castigated by farmer unions and farmers over its failure to adequately fund the sector which used to be the backbone of the economy, the New Ziana reported.
"Of the total, US$60 million was earmarked to pay debts owed to seed houses and fertiliser companies," said Biti.
"US$15 million will be for payment of arrears for delivered grain such as wheat and maize, and US$40 million will go towards payment of grain deliveries made to the Grain Marketing Board during the 2011/12 marketing season."
The government was also engaging the donor community to avail more funding for the agriculture sector in the forthcoming season.
"We are also discussing with donors and they have indicated that they will provide between U$50 million and US$70 million for the 2012/13 farming season," said Biti.
Zimbabwe has lost its status as Africa's food basket in the last two decades due to droughts, economic sanctions and low funding by the government.
In the past, the government has been castigated by farmer unions and farmers over its failure to adequately fund the sector which used to be the backbone of the economy, the New Ziana reported.
"Of the total, US$60 million was earmarked to pay debts owed to seed houses and fertiliser companies," said Biti.
"US$15 million will be for payment of arrears for delivered grain such as wheat and maize, and US$40 million will go towards payment of grain deliveries made to the Grain Marketing Board during the 2011/12 marketing season."
The government was also engaging the donor community to avail more funding for the agriculture sector in the forthcoming season.
"We are also discussing with donors and they have indicated that they will provide between U$50 million and US$70 million for the 2012/13 farming season," said Biti.
Zimbabwe has lost its status as Africa's food basket in the last two decades due to droughts, economic sanctions and low funding by the government.
Source - New Ziana
