News / National
Stop Order Act to be amended
06 Dec 2015 at 18:55hrs | Views
Government will amend the Stop Order Act in an effort to protect lending institutions and curb side marketing of crops.
It is anticipated that the move will help improve financing of agriculture by banks.
Restoration of the stop order system is pivotal in enhancing the participation of the banking sector in funding of agriculture.
The move comes at a time the Bankers Association of Zimbabwe (BAZ) is working on developing robust arrangements for the re-establishment of the stop order system for all agricultural crops.
This is being done in consultation with relevant stakeholders, the Ministry of Agriculture, Mechanisation and Irrigation Development, as well as treasury.
In the 2016 budget statement presented by Finance Minister Patrick Chinamasa, the framework provides the desired certainty of loan repayments, which is demanded by banks.
Agri-business development expert, Mr Welcome Shumba, said a functional stop order system is a sustainable way of developing agriculture as demonstrated by the tobacco industry.
Non-enforcement of stop orders have been part of the challenges that precipitated the collapse of cotton production.
The amended Stop Order Act will extend to variety of crops such as soya beans and cotton, in a similar manner to loan recovery arrangements for tobacco.
It is anticipated that the move will help improve financing of agriculture by banks.
Restoration of the stop order system is pivotal in enhancing the participation of the banking sector in funding of agriculture.
The move comes at a time the Bankers Association of Zimbabwe (BAZ) is working on developing robust arrangements for the re-establishment of the stop order system for all agricultural crops.
This is being done in consultation with relevant stakeholders, the Ministry of Agriculture, Mechanisation and Irrigation Development, as well as treasury.
In the 2016 budget statement presented by Finance Minister Patrick Chinamasa, the framework provides the desired certainty of loan repayments, which is demanded by banks.
Agri-business development expert, Mr Welcome Shumba, said a functional stop order system is a sustainable way of developing agriculture as demonstrated by the tobacco industry.
Non-enforcement of stop orders have been part of the challenges that precipitated the collapse of cotton production.
The amended Stop Order Act will extend to variety of crops such as soya beans and cotton, in a similar manner to loan recovery arrangements for tobacco.
Source - zbc
