Zimbabwe banks channel US$200m into agric sector

Zimbabwe's banking sector has injected approximately US$200 million to support the ongoing 2024/2025 summer cropping season, underscoring renewed efforts to revitalize agriculture, a sector long regarded as the backbone of the nation's economy.

Despite its critical importance, agriculture in Zimbabwe has faced persistent challenges, notably chronic underfunding and ongoing uncertainties over land ownership. Historically, banks have pledged about US$500 million annually to the sector, yet less than half of this amount has been accessed by farmers. A major limiting factor remains the lack of formal title deeds, which restricts farmers' ability to use land as collateral for financing.

Lands, Agriculture, Water, Fisheries and Rural Development Minister Dr. Anxious Masuka emphasized the pivotal role the financial sector plays in supporting agricultural growth.

"As of January 31, 2025, the Bankers Association of Zimbabwe indicated funding of ZWG852.97 million and US$163.12 million for the 2024/2025 season," Dr. Masuka stated.

For the preceding season, total agricultural funding reached an estimated US$1.6 billion, with the private sector contributing US$960 million and the government covering the remaining 40%. This blended financing approach, combining private capital with government backing, has become central to Zimbabwe's agricultural strategy.

The government's support has been channeled primarily through the Presidential Input Support Programme, which targeted over 1.8 million households to boost production of cereals, oilseeds, and legumes. Overall, the programme benefited approximately 3.5 million individuals. Additionally, the Agricultural and Rural Development Authority (ARDA) Joint Venture Programme contributed substantially to targeted crop hectarage, while the National Enhanced Agriculture Productivity Scheme (NEAPS)—financed by institutions such as AFC, CBZ, and NMB—covered the commercial farming sector.

These interventions aim to scale up production significantly, with a key objective of increasing cereal output from 750,000 tonnes to over 3.2 million tonnes. Oilseed production—especially cotton, sunflower, and soyabean—is also expected to rise, helping to strengthen national food security and reduce dependency on imports.

Maize production is forecast to reach 2.2 million tonnes this season, surpassing the national requirement of 1.8 million tonnes. This anticipated bumper harvest is attributed largely to favorable weather patterns, with many regions receiving normal to above-normal rainfall.

The expansion of irrigable land has been another important factor in improving yields. The government is prioritizing irrigation infrastructure development, targeting an increase in functional irrigable land from just over 200,000 hectares to nearly 496,000 hectares by the end of 2025.

As Zimbabwe intensifies efforts to restore agricultural productivity, the collaboration between government and financial institutions provides a promising foundation. However, experts and stakeholders continue to urge urgent resolution of land tenure uncertainties, which remain a significant barrier to fully unlocking the sector's potential.

Without addressing these structural challenges, Zimbabwe's agricultural ambitions risk being undermined, despite increased funding and improved climatic conditions.