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Mnangagwa dangles US$2 billion loan facility
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President Emmerson Mnangagwa has unveiled a US$1.98 billion loan facility to be rolled out over the next decade to help farmers boost productivity and withstand the impacts of climate change through an irrigation-focused package.
The facility will fund the acquisition of "Productivity Booster Kits" - one-hectare irrigation packages comprising pumps, pipes, sprinklers, and related equipment - aimed at smallholder farmers, particularly those in the tobacco sector.
Launching the programme in Mazowe on Monday, Mnangagwa said the initiative would ease farmers' dependency on rain-fed agriculture while transforming the country's agricultural output.
"My Government plans to allocate US$1.98 billion over 10 years as a loan for the Productivity Booster Kit Programme. Additionally, five banks have committed to providing additional working capital," said the President.
He added that the kits would not only support smallholder tobacco farmers but also help localise procurement within the farming value chain.
Under the first phase, 10,000 farmers are expected to benefit, each accessing about US$6,000 to secure the kits. Government projections indicate that with the adoption of irrigation systems, A1 farmers could contribute up to US$6.14 billion to agricultural GDP, driven by an anticipated 10 million tons of annual production.
Mnangagwa said the programme was designed to safeguard Zimbabwe against increasingly severe weather shocks, including prolonged droughts.
"The devastating effects of the El Nino-induced drought during the 2023/2024 season, among other experiences, have shown us the urgent need to climate-proof agriculture. To this end, we have set for ourselves an ambitious and achievable target to develop 496,000 hectares of land under irrigation by 2030, with over 350,000 hectares under summer cereal production," he said.
The government expects the programme to help irrigate more than 400,000 hectares by 2030, securing food security and stabilising rural livelihoods.
The facility will fund the acquisition of "Productivity Booster Kits" - one-hectare irrigation packages comprising pumps, pipes, sprinklers, and related equipment - aimed at smallholder farmers, particularly those in the tobacco sector.
Launching the programme in Mazowe on Monday, Mnangagwa said the initiative would ease farmers' dependency on rain-fed agriculture while transforming the country's agricultural output.
"My Government plans to allocate US$1.98 billion over 10 years as a loan for the Productivity Booster Kit Programme. Additionally, five banks have committed to providing additional working capital," said the President.
Under the first phase, 10,000 farmers are expected to benefit, each accessing about US$6,000 to secure the kits. Government projections indicate that with the adoption of irrigation systems, A1 farmers could contribute up to US$6.14 billion to agricultural GDP, driven by an anticipated 10 million tons of annual production.
Mnangagwa said the programme was designed to safeguard Zimbabwe against increasingly severe weather shocks, including prolonged droughts.
"The devastating effects of the El Nino-induced drought during the 2023/2024 season, among other experiences, have shown us the urgent need to climate-proof agriculture. To this end, we have set for ourselves an ambitious and achievable target to develop 496,000 hectares of land under irrigation by 2030, with over 350,000 hectares under summer cereal production," he said.
The government expects the programme to help irrigate more than 400,000 hectares by 2030, securing food security and stabilising rural livelihoods.
Source - NewZimbabwe
