Farai Mabeza, Senior Staff Writer 
THE government will rope in pension funds and development partners to capitalise the restructured Agribank ahead of its opening as a land bank in the first quarter of 2021, Agriculture minister Anxious Masuka has said.
Agriculture minister Anxious Masuka has said.
The remodelling of the bank is one of the key movers of government’s agricultural transformation strategy and Masuka told reporters last week that remarkable progress had been made on the conversion.
“In terms of capitalisation there will be short term and medium to long term measures.
“The short-term measures will include but are not limited to direct budgetary support, pension funds, taxes and perhaps development partner support,” Masuka said.
“We think that the short-term capitalisation will be to the tune of US$40 million specifically for 2021, (and) there is budgetary provision from government for $700 million to ensure that the Land and Agricultural Development Bank of Zimbabwe opens its doors on the 1st of April, 2021 ahead of the winter wheat season.”
Information minister Monica Mutsvangwa told the same briefing that the Cabinet had adopted key elements of the establishment of the bank that were presented by Finance minister Mthuli Ncube.
“The elements cover two main areas, namely: institutional design and governance; and capitalisation and fiscal matters,” Mutsvangwa said.
Government approved the restructuring of Agribank in August this year to support the country’s Agriculture Recovery Plan, which is aimed at ensuring food self-sufficiency for the country.
The bank will provide investment support for A1, A2 and small-scale commercial farmers who haAve not been supported by commercial banks.
