No more free farming equipment
Zimbabwe’s Lands, Agriculture, Water and Rural Resettlement Minister Perrance Shiri has said that the country’s current mechanisation and irrigation projects are not free.
He said beneficiaries are expected to pay back the loans and all loans being issued through banks using banking criteria of creditworthiness. Government has partnered with CBZ, Stanbic Bank and Agribank.
Shiri told the State owned Herald individuals with a proven track record and capacity to pay back loans will benefit from the Government-initiated mechanisation and irrigation programmes.
The mechanisation and irrigation programmes include the John Deere facility and the Belarus irrigation facility.
The John Deere Mechanisation facility, which is aimed at achieving the Agricultural Recovery Plan, is meant to ensure Zimbabwe achieves self-sufficiency in the production of cereals.
The facility included tractors, combine harvesters, planters, disc harrows, boom sprayers and trailers, among other implements.
Under the Agriculture Recovery Plan, it is expected that 5 000 capable farmers with a proven track record on cereal production will be contracted.
He said, “We have roped in banks and everything is now in the hands of banks. We are working with CBZ, Stanbic Bank and Agribank. Agribank will also be establishing a special equipment leasing vehicle for the purposes of mechanisation service provision for combine harvesters. There is no free lunch under the Second Republic. Government is taking advantage of its reach and negotiating capacity to get equipment for farmers at reasonable prices and farmers are expected to pay. There is no free lunch. The projects are on a cost recovery basis.”
Shiri’s announcement comes at a time when Zimbabweans on social media expressed outrage over the RBZ Farm Mechanisation programme in 2008 which benefitted a number of prominent individuals who did not pay back the loans.
There was confusion regarding the facility with former central bank governor Gideon Gono saying it was a loan and it was a loan.