Boost for land
reform
STANBIC Bank Zimbabwe
has agreed to finance the land reform programme by extending $2,5 billion loans
to farmers under the A2 model scheme for the 2002/2003 farming season.
The fund is accessible to farmers who are into livestock production,
beef and dairy, as well as plantation crops that include citrus, horticulture,
stone fruits, forestry and safaris.
The Ministry of Lands, Agriculture
and Rural Resettlement will provide a comprehensive list of all A2 farmers who
have taken up their land for easy identification of applications by the bank.
Under an agreement recently signed between Stanbic Bank and the Ministry
of Lands, Agriculture and Rural Resettlement, the bank agreed to assist farmers
to procure livestock and farm machinery such as tractors and implements,
financing of irrigation equipment either through rehabilitation or purchasing
new irrigation equipment.
"Stanbic Bank Zimbabwe Limited will seek to
support newly and old resettled farmers as individuals or through umbrella
organisations for seasonal finance and capital requirements. It is estimated
that this finance will amount to not less than $2,5 billion for the 2002/03
season," read part of the agreement.
The bank will support farmers
through their normal and usual financing requirements in procuring tractors and
purchasing of portable bulk curers, installation of grain storage facilities and
irrigation facilities � fixed or mobile.
Beside financial assistance to
the new farmers, the bank also undertook to develop irrigation infrastructure at
the Nuanetsi Ranch Estate where 100 000 hectares have been opened up for sugar
cane production and other food crops.
The Minister of Lands, Agriculture
and Rural Resettlement Cde Joseph Made welcomed the bank�s financial support and
said as prescribed by the agreement, the Government would ensure that the tenure
of all recipient farmers was not interfered with during the duration of the
bank�s facilities.
His ministry will issue secure and legally binding
leases with terms not less than 35 years to the farmers.
It is
understood that the leases could be passed onto spouses or offsprings who are
expected to undergo some form of training in a particular agricultural activity
on the farm for succession purposes.
In order to facilitate easy
disbursement of the funds, the ministry will, through its relevant departments,
assist in grouping farmers into manageable groups and clusters under umbrella
organisations to foster a co-ordinated approach in supporting the new farmers.
Full compensation to the bank for any indebtedness by the farmer for
fixed infrastructure in the event that the farmer leaves the land for whatever
reason will also be the responsibility of the ministry.
Captains of
industry and farmers welcomed the gesture by the bank saying the financial aid
was going to boost the economy and usher in a new chapter in the land reform
programme especially with the coming on board of non-indigenous banks.
They said increasing participation of the private sector in land reform
through financial assistance was a clear indication of the importance that the
banking sector now places the agrarian reforms.
The private sector,
which was initially reluctant to support the land reform programme now seem to
have realised that the new farmers form the back borne of the economy and needed
all the support.
A number of banks have to extend billions of dollars
towards supporting old and resettled farmers, complementing Government�s
efforts.
The banks include Agribank, Time Bank, Metropolitan Bank and
the Jewel Bank.
The Mulindwas
communication group
"With Yoweri Museveni, Uganda is in
anarchy"
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