GOVERNMENT has allocated $362,5 billion in the budget to support various agricultural programmes to transform the farming sector and ensure food security in the country.
Agriculture Productive Social Protection Scheme, management of the Strategic Grain Reserve, water harvesting and irrigation development are some of the initiatives that will be funded.
A total of US$154.6 million equivalent to local currency has also since been issued by Government as a guarantee to AFC Holdings to raise resources from the market in support of the agriculture sector.
The mobilised funds will finance maize, soya beans, sunflower and traditional grains production for the 2022/23 summer farming season.
Presenting the 2023 national budget yesterday, the Minister of Finance and Economic Development, Professor Mthuli Ncube said Government support towards various agriculture programmes has significantly increased the output of strategic crops despite output levels for targeted crops such as wheat, which has the highest ever output in 2022.
He said in addition to the funding guarantee, AFC Holdings has also been capacitated with tractors and implements which are being leased to farmers on a cost recovery basis.
As part of a strategy to increase production and productivity of rural households, constituting 61 percent of the population which is dependent on agriculture activities, a total of $11,8 billion has also been set aside to accelerate smallholder mechanisation programmes such as the provision of tractors and climate change mitigatory measures like soil and water conservation which play a crucial role in the sector.
“The ongoing transformation of the agricultural sector, anchored on innovative technologies and good agronomics is meant to rebuild capacity to meet national requirements, support economic growth and increase incomes of households.
“The various programmes and projects being undertaken by Government seek to promote production and productivity, build resilience to climatic shocks, transform agricultural activities into viable business enterprises, as well as reduce the import bill,” said Minister Ncube.
The envisaged transformation of the sector is being undertaken through various crucial programmes like Climate Proofed Presidential Inputs Scheme (Intwasa/Pfumvudza), Isiphala seNkosi/Zunde raMambo Programme, Input Packages, National Enhanced Agriculture Productivity Scheme (NEAPS), Presidential Cotton Scheme, Presidential Rural Horticulture Development Programme, Tobacco Transformation Plan, Presidential Poultry Scheme, Presidential Goat Scheme, Presidential Community Fisheries Scheme, Presidential Blitz Tick Grease Scheme, Local Inventions and Interventions, Agriculture mechanisation, Presidential Youth Heifer Programme and Irrigation development anchored on V-30 accelerator model.
The agricultural sector is projected to grow by four percent in 2023 before accelerating to 7,9 percent and 8,2 percent in 2024 and 2025 respectively based on the normal to above normal rainfall forecast, climate proofing measures under the national accelerated irrigation, rehabilitation programme as well as the restructuring and transformation of agriculture systems to improve the viability and productivity of the sector.
Government is targeting to produce three million tonnes of maize during the 2022/23 summer cropping season and this comes as the Second Republic has made food security a top priority that has already seen the US$8,2 billion agriculture industry economy by 2025 being achieved in record 18 months, contributing 20 percent of GDP, underpinned by the country’s National Development Strategy 1 (NDS1) — the driver towards Vision 2030 to make Zimbabwe an upper middle-class economy.
The country requires 2,2 million tonnes of maize for human and livestock consumption and the three million tonnes target will position Zimbabwe as a significant player in grain production in the region.
Minister Ncube said Government has since upscaled the engagement with relevant stakeholders to review the current agricultural financing model to increase the role of the private sector in the financing of agriculture activities to limit the treasury’s role in supporting vulnerable households, provision of requisite infrastructure as well as extension services.
For the 2022/23 farming season, Government is providing agriculture inputs to vulnerable households under the Agriculture Productive Scheme (Intwasa/Pfumvudza) targeting 845 000 ha under cereal and oil seeds for $77 billion. The Programme targets 900 000 households, of which about 300 000 are vulnerable households from urban areas.
The programme also targets to support 5 200 cotton growers with cotton inputs and as of last week inputs comprising 9 398 metric tonnes of grain seed and 50 831 metric tonnes of fertilisers valued at US$74 million had already been distributed.
Minister Ncube said funding for commercial farmers under the National Enhanced Agriculture Productivity Scheme (NEAPS) is being reviewed following the challenges experienced since the inception of the programme.
Some of the challenges experienced include side marketing by farmers, reluctance by farmers to deliver their produce to GMB citing low grain prices being offered by GMB and delivery of grain by farmers using different names making it difficult for the stop order system to recover loans.
“The low recovery rate has necessitated Government to explore options which ensure the sustainability of agriculture financing, including crowding in private sector investment in agriculture and adopting a competitive grain pricing and purchasing model,” said Minister Ncube. – The Chronicle
