POSB starts selling Belarus tractors

People's Own Savings Bank (POSB), one of the financial institutions selected by the Government to facilitate the resale of Belarus tractors to Zimbabwean farmers, has announced that the equipment is now available for purchase through the bank.

The tractors were secured through the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development as part of a national initiative to enhance agricultural mechanisation and productivity. The programme seeks to improve efficiency in the sector and boost food security across the country.

To ensure accessibility, POSB Zimbabwe, in partnership with the ministry, is offering flexible financing options. These include a three-year repayment period with no collateral required and a competitive interest rate of 7.5 percent per annum. This initiative aims to ease the financial burden on farmers, enabling them to acquire essential machinery without undue strain.

In a statement, POSB chief executive officer Mr. Garainashe Changunda encouraged interested farmers to visit the bank's service centres with their application documents to purchase the tractors.

"As part of our commitment to transforming livelihoods and fostering sustainable agricultural practices, POSB Zimbabwe is pleased to offer a range of tractors from Belarus, including 81 Hp, 107 Hp, 130 Hp, and 155 Hp models," he said.

"These tractors are designed to meet the diverse needs of farmers, ensuring they have the right tools to enhance their productivity and efficiency. This project aligns with our commitment to supporting the agricultural sector and empowering local farmers with the tools they need to succeed. By offering flexible financing options, we aim to make these tractors accessible to as many farmers as possible, ultimately contributing to the growth and sustainability of Zimbabwe's agriculture."

He added that the tractors are available to individual farmers, registered agribusinesses, farming cooperatives, and irrigation schemes. Interested parties must meet specific criteria, including having a farmer's account, providing a cover letter, security of tenure documents, a detailed project proposal, and a payment plan.

The mechanisation of the agricultural sector is a crucial driver of Zimbabwe's agro-based economy. The country aims to increase agriculture's contribution to the gross domestic product (GDP) from the current 20 percent to 33 percent. Additionally, the initiative is expected to help farmers transition into middle-income groups, supporting Zimbabwe's vision of becoming an upper-middle-income economy by 2030.

The farm mechanisation programme has been an ongoing collaboration between Zimbabwe and Belarus. In 2018, President Mnangagwa engaged his Belarusian counterpart, President Alexander Lukashenko, to facilitate the supply of farm equipment and training of local farmers in cultivation, seeding, irrigation, and crop harvesting.

In February 2024, President Mnangagwa commissioned 1,635 tractors, 16 combine harvesters, and other farming equipment under the US$66 million Belarus Phase 2 Mechanisation Facility. The first phase had earlier delivered 474 tractors, 60 combine harvesters, 210 planters, and five low-bed trucks to farmers.

The latest development marks another step toward Zimbabwe's agricultural transformation, reinforcing the government's commitment to ensuring farmers have access to modern farming equipment to boost national food production.