At least 10 000 small scale-farmers are set to benefit from a credit facility after a local company embarked on an ambitious project to raise $30 million to fund agriculture projects.
The move would be in support of the Zimbabwe Agenda for Sustainable Socio- Economic Transformation (Zim Asset) clusters on food security.
KMFS Insurance Company chairman Kenias Mafukidze said the company secured international funding to boost agricultural production.
“We secured international funding to the tune of $750 000 to be applied towards rising $30 million credit to be provided to more than 10 000 rural farmers over the next six years,” he said.
Mafukidze said so far, the company raised and extended $5 million in loans to 2 000 small scale farmers working in partnerships with input suppliers and leading seed companies.
He said the company had crafted the funding scheme to support small-scale farmers enhance production as underlined in the ZimAsset.
“The agricultural sector, being the backbone of the economy underpinning economic growth, food security and poverty eradication, continues to experience severe systemic challenges within its entire value chain ranging from lack of agricultural financing to lack of affordable inputs,” said Mr Madukidze.
“KM Insurance has crafted a solution that will attract funding into the rural areas.”
Mr Mafukidze said the company would securitise the farmers’ livestock for the funds.
“The company plans to mobilise over $40 million towards rural agriculture farming projects over the ZimAsset timeframe, thereby, reducing poverty and improving productive employment,” he said.