fbpx
Tuesday, November 29, 2022
HomeBusinessMulti-Million Dollar Horticulture Export Revolving Fund Launched

Multi-Million Dollar Horticulture Export Revolving Fund Launched

Finance and Economic Development Minister, Prof Mthuli Ncube has launched the US$30 million Horticulture Export Revolving Fund which will be administered by five banks including the Central Bank to give capacity to local farmers in horticulture projects to acquire value addition facilities.

The government, Reserve Bank of Zimbabwe, FBC Bank, NMB Bank, CABS Bank and the AFC Land and Development Bank have signed the Memorandum of Agreement and Term Sheet for the fund.

Speaking at the launch, the finance Minister said the fund will improve the country’s horticulture exports which have drastically receded during the past two decades.

“The sector used contributed over US$125 million in export earnings at its peak in 2000. Currently, the industry contributes US$77 million to export revenue.”

“To this end, the setting up of a US$30 million Horticulture Export Revolving Fund (HERF) (“the Fund”) in line with the 2022 National Budget Statement on the SDR allocation, will go a long way in empowering our farmers to start horticulture projects as, well as acquire value addition facilities that will enable dehydrating, freezing, canning, bottling, extracting, juicing and concentrating their produce.”

According to the Horticultural Development Council of Zimbabwe, the country’s horticultural exports increased from only US$6 million in the 1987/88 season, to US$103 million by 1997.

ALSO ON 263Chat:  Zimphos Fertilizer Blending Plant Launched

The exports grew by an annual average rate of 25 per cent for the period 1998 to 2004 peaking at above US$ 250 million by the early 2000s.

Until the late 1990’s the sector contributed 3.5-4.5% of the National GDP and was a major foreign exchange earner for the country with diverse exports of horticultural products including tropical, citrus and deciduous fruits; various vegetables; tree nuts; avocados and cut flowers to European markets.

Furthermore, the sector is projected under the Horticulture Recovery and Growth Plan to contribute export earnings of US$300 million per year, by 2030.

“The Horticulture Export Revolving Fund has the potential to close the funding gap and spearhead increased productivity, as well as finance bankable projects with a focus on the value addition. Such strategic deployment of resources will ensure that Zimbabwe’s Vision 2030 remains on course as we target an upper middle-income society by 2030 and enables Zimbabwe to restore its position as one of the leading horticultural exporting country in the region.”

The Facility will be accessed through the normal banking channels where eligible export horticulture applicants/intended beneficiaries are required to submit their requests to the participating banks with the requisite information.

 

Share this article

No comments

Sorry, the comment form is closed at this time.

You cannot copy content of this page