The Financial Gazette

Tabitha Mutenga, Staff Reporter

FINANCE Minister Tendai Biti has said Zimbabwe requires far-reaching reforms in agriculture which include completion of the controversial land redistribution exercise, an audit of the land redistribution programme and respect for property rights to attract capital.

The sector is currently reeling from lack of investment.
Launching the 2011/2012 government funded agricultural input support facility, Biti said security of tenure was critical for farmers to enable investment in agriculture as well as mobilisation of funding from the market, particularly the banking sector.
"In this regard, provision of security of tenure through the issuance of the 99-year leases becomes critical. The finalisation of the fast track land reform programme, a land audit and also defining  the judicial framework governing property rights and in particular the restoration of the land market through a judiciary enforceable title is also critical," he said.
The Finance Minister has been recently under fire for failing to adequately fund the agricultural sector which requires over US$700 million while banks are demanding title deeds as security to release funds to resuscitate the country's collapsed agricultural sector.
Ten years ago, there was little argument about the significance of the country's vibrant commercial agricultural sector, which played a breadbasket role for the southern African region. Now, the sector has been decimated, with no respect for property rights and a disorganised land tenure system that has failed to win backing from both investors and banks.
The erosion of rights has impacted not only on citizens but also foreign investors.
Biti said government was committed to mobilise and co-ordinate banks, development partners, seed houses, farmers' unions, fertiliser companies as well as individual farmers to put in place the necessary financing arrangements for the 2011/2012 summer cropping season.
"Therefore, government has, in partnership with local input producers, so far secured inputs worth US$75 million to be accessed by both A2 and vulnerable farmers," he added.
The US$30 million input facility scheme targets farmers that have delivered grain to the Grain Marketing Board (GMB) and have not yet been paid for their grain.
The US$45 million input facility scheme targets 500 000 vulnerable farmers, including 100 000 vulnerable households, and will be complemented by cooperating partners.
"Between 2009 and 2011, the inclusive government, together with international partners and private financiers, have committed a total of US$1,9 billion into the agricultural sector. Budget support on its own has totalled US$552 million," said Biti.
The input support facility for the vulnerable comprises of maize seed, sorghum seed, and fertilisers and farmers will access the inputs from GMB depots for free through a voucher system.
Biti said interventions to resuscitate the agricultural sector would include establishing reliable and consistent private sector model of financing agriculture, strengthening use of technology, including ICT, establishment of open commodity exchange markets for agricultural outputs and resolving the issues of compensation as defined by the Global Political Agreement, the document that resulted in the creation of the inclusive government.
"Complementing these interventions will be measures aimed at enhancing farmers' productivity through improvements in mechanisation, high yield seed varieties, use of fertilisers and chemicals, irrigation and provision of extension services." Biti said.

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