News / National
$300m loan from Brazil to finance Zim agriculture
27 Oct 2011 at 08:14hrs | Views
Harare - Zimbabwe has secured a $300m loan from Brazil to finance agriculture and boost crop production after successive years of food deficits, state media reported on Thursday.
The loan is part of Brazil's aid programme for Africa, The Herald said.
Agriculture Minister Joseph Made said the funds would be used to support farmers who have largely failed to get loans from local banks that are still recovering from a prolonged economic crisis.
"The ... programme is important for the country as it has managed to address some of the challenges we have been facing in securing lines of credit to support the agriculture sector that is the backbone of the economy," Made told the newspaper.
Once a regional bread-basket, Zimbabwe has struggled to feed itself since 2000 when President Robert Mugabe's government started to seize farms owned by whites to resettle landless blacks.
The agriculture sector has shown signs of recovery under a unity government set up two years ago by Mugabe and his rival, Prime Minister Morgan Tsvangirai, following disputed elections in 2008.
The sector is expected to grow 33% in 2011, according to government projections. Production of the staple maize grain has risen from 400 000 metric tons in 2008 to 1.45 million tons this year, but is still below a national requirement of two million tons.
The loan is part of Brazil's aid programme for Africa, The Herald said.
Agriculture Minister Joseph Made said the funds would be used to support farmers who have largely failed to get loans from local banks that are still recovering from a prolonged economic crisis.
"The ... programme is important for the country as it has managed to address some of the challenges we have been facing in securing lines of credit to support the agriculture sector that is the backbone of the economy," Made told the newspaper.
Once a regional bread-basket, Zimbabwe has struggled to feed itself since 2000 when President Robert Mugabe's government started to seize farms owned by whites to resettle landless blacks.
The agriculture sector has shown signs of recovery under a unity government set up two years ago by Mugabe and his rival, Prime Minister Morgan Tsvangirai, following disputed elections in 2008.
The sector is expected to grow 33% in 2011, according to government projections. Production of the staple maize grain has risen from 400 000 metric tons in 2008 to 1.45 million tons this year, but is still below a national requirement of two million tons.
Source - Reuters
