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Mnangagwa's son grilled over US$200m seed debt
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Finance and Investment Promotion Deputy Minister David Mnangagwa has come under fire in Parliament after it emerged that the Government owes Valley Seeds Private Limited nearly US$200 million for agricultural inputs supplied under the Vulnerable Inputs Scheme.
The revelations sparked heated debate, with Mbizo legislator Cobarn Madzivanyika (CCC) questioning how the Government provided a financial assurance to a private company's bank without obtaining prior approval from Parliament, potentially violating the Public Finance Management Act.
The debt dates back to inputs - including tomato, carrot, onion, and maize seeds - distributed during the run-up to the August 2023 harmonised elections. ZANU-PF used the scheme as part of its campaign strategy, distributing seeds and agricultural inputs to rural and urban communities.
Responding in Parliament, Deputy Minister Mnangagwa confirmed that Government owes Valley Seeds a total of US$191,578,835.56. He said the delay in payment was due to "limited fiscal space."
"Government is currently owing Valley Seeds for inputs supplied under the Vulnerable Inputs Scheme," Mnangagwa said. "To unlock the arrears, Valley Seeds discounted its debt through its local bank. The bank then requested Government to ensure monthly payments of US$5 million, to be processed through that bank."
He added that the Government issued a letter of commitment - not a guarantee - to reassure the bank that payments would be made.
"A letter of commitment and a Government guarantee are two separate instruments," he clarified. "What the Ministry simply did was reaffirm its payment obligation to the bank where this private company had structured its own financial arrangement."
However, critics say the arrangement raises accountability and governance concerns, especially given the magnitude of the debt and the absence of parliamentary oversight.
The issue has also exposed deeper problems in Zimbabwe's agriculture financing system. Seed companies are reportedly owed over US$200 million from the 2022/23, 2023/24 and 2024/25 farming seasons.
Delayed payments have disrupted planting schedules and affected national food security. Some seed suppliers are now scaling back operations or preferring upfront-paying clients, sidelining many smallholder farmers who depend on Government-supported input schemes.
The Government remains the single largest buyer of seed in Zimbabwe, with major procurement linked to initiatives such as the Presidential Inputs Programme. Timely payments are essential for sustaining seed companies and ensuring they can invest in research and maintain production.
Agriculture stakeholders are urging the Government to improve transparency, enforce timely disbursement of funds, and ensure that such significant financial commitments follow proper legislative channels.
The revelations sparked heated debate, with Mbizo legislator Cobarn Madzivanyika (CCC) questioning how the Government provided a financial assurance to a private company's bank without obtaining prior approval from Parliament, potentially violating the Public Finance Management Act.
The debt dates back to inputs - including tomato, carrot, onion, and maize seeds - distributed during the run-up to the August 2023 harmonised elections. ZANU-PF used the scheme as part of its campaign strategy, distributing seeds and agricultural inputs to rural and urban communities.
Responding in Parliament, Deputy Minister Mnangagwa confirmed that Government owes Valley Seeds a total of US$191,578,835.56. He said the delay in payment was due to "limited fiscal space."
"Government is currently owing Valley Seeds for inputs supplied under the Vulnerable Inputs Scheme," Mnangagwa said. "To unlock the arrears, Valley Seeds discounted its debt through its local bank. The bank then requested Government to ensure monthly payments of US$5 million, to be processed through that bank."
He added that the Government issued a letter of commitment - not a guarantee - to reassure the bank that payments would be made.
"A letter of commitment and a Government guarantee are two separate instruments," he clarified. "What the Ministry simply did was reaffirm its payment obligation to the bank where this private company had structured its own financial arrangement."
However, critics say the arrangement raises accountability and governance concerns, especially given the magnitude of the debt and the absence of parliamentary oversight.
The issue has also exposed deeper problems in Zimbabwe's agriculture financing system. Seed companies are reportedly owed over US$200 million from the 2022/23, 2023/24 and 2024/25 farming seasons.
Delayed payments have disrupted planting schedules and affected national food security. Some seed suppliers are now scaling back operations or preferring upfront-paying clients, sidelining many smallholder farmers who depend on Government-supported input schemes.
The Government remains the single largest buyer of seed in Zimbabwe, with major procurement linked to initiatives such as the Presidential Inputs Programme. Timely payments are essential for sustaining seed companies and ensuring they can invest in research and maintain production.
Agriculture stakeholders are urging the Government to improve transparency, enforce timely disbursement of funds, and ensure that such significant financial commitments follow proper legislative channels.
Source - newsday
