Agribank has secured US $10min order to support agricultural exporters as well as value addition for agro processors. The funds, sourced from the Egypt-based African Export-Import Bank (Afreximbank) are part of efforts to deepen Agribank’s support for agriculture.
The bank’s CEO Mr. Sam Malaba said that this will go a long way towards supporting the government which is currently supporting exporters in an attempt to generate more foreign currency.
Zimbabwe has been faced with the challenge of foreign currency shortages. This has since resulted in delays by some companies to get raw materials and/ or spare parts from other countries as a result of delays in approving foreign payments.
The Reserve Bank of Zimbabwe is in charge of approving foreign payments. This is in a bid to facilitate payments only for critical raw materials as required by industry, fuel and electricity. Recently, the central bank said it was allocating up to US $90m for fuel imports per month. This, in turn, will result in a strong case for exporters who will then be forced to up their game and generate more foreign currency.
Meanwhile, Agribank is also in “advanced stages of negotiations” with a regional financier to secure a US $50m line of credit to support agriculture. This is according to media reports. According to Mr. Malaba, the transaction will probably be finalized within the next two months.
The acquisition of the aforementioned credit line will serve as a reprieve for farmers who have been facing funding challenges, particularly as preparations for the 2018/2019 summer cropping season begins.
Mr. Malaba also assured of the bank’s support for agriculture in line with focus on agriculture recovery by Government. Agribank is also looking to raise agro-bills and secure lines of credit for agriculture interventions. These include support to fertiliser, chemicals and seed companies
