Nico Orgo Fertilisers to raise $7m for agric funding
Jan. 19, 2012
At the end of last year the Agricultural Marketing Authority and CBZ Bank failed to raise an initial $50 million through agro-bills after just over a third of total bids were allotted. A total of $17,7 million was raised after $31,9 million, which showed bills were under-subscribed. The government and private sector players have been exploring various funding mechanisms aimed at boosting the countrys agriculture production.
Analysts contend that tight liquidity on the markets will result in most agro-bills being undersubscribed. In his 2012 Budget presentation, Finance minister Tendai Biti said the agricultural sector required at least $2 billion annually to realise its full potential.
In this regard, the projected growth in agricultural production of 11,6% in 2012 takes account of the number of financing facilities established by the government, the banking sector, co-operating partners, seed and fertiliser suppliers, in support of the preparation for the 2011/2012 agricultural season, he said. Agricultural sector output is expected to increase this year with tobacco, maize, cotton, soyabeans and poultry being the drivers.
In a bid to improve the mobilisation of funding for the agricultural sector, Biti has since proposed a three-year rolling financing strategy from 2012 to 2017 in order to enhance farmers planning and preparedness.
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