CBZ Holdings seeks to transform CBZ Agro-Yield
CBZ Holdings says the Government should wean off the CBZ Agro-Yield initiative to allow the bank to drive the initiative as it has already invested heavily in technology that tracks loans and activity on the farms.
The CBZ Agro-Yield is a CBZ Holdings agricultural financing initiative in partnership with the Government for financing maize and soyabeans launched for the 2019-20 farming season and beyond.
Blessing Mudavanhu, the group’s chief executive, said the motivation to set up the AgroYield was to correct the Command Agriculture programme which had all kinds of challenges.
“Previously, it was 100 percent government funding, but we have a government guarantee, so if this is truly to be private, we need to be weaned off by the government so that it can be done by our own feet,” he said.
He added that the group has invested in technologies that can monitor exactly what is happening on those farms and ensure there are no issues of side marketing.
According to Mudavanhu, the Government came to partner CBZ to create a platform in which public sector and private sector funding can be attracted to the agriculture sector.
He said the money is not Agro-Yield money, but it is a platform to allow an efficient conduit for private sector and public sector funding.
Mudavanhu said the gist of the programme was also to procure in bulk and suppliers are also participants of this network.
“So what it does is to reduce the cost to produce by farmers. So as things stand, with government guarantee, and government support and the technology deployed and what we are putting in place, we will be able to run on our feet,” he said.
Sable Chemicals, the country’s sole producer of ammonium nitrate received $335 million out of nearly $1,5 billion that was targeted for the period between April and August 2021 under acontract it entered with CBZ Agro Yield for the supply of top dressing fertiliser.
The Kwekwe-based AN producer entered into a $3 billion deal with CBZ Agro Yield to supply 60 000 tonnes of AN between April 2021 and February 2022.
Target production between April and August 2021 was 30 000 tonnes, but CBZ Agro Yield only released $335 million, significantly less than $1,45 billion needed for the period, sources said.
Funding needs for the period between September 2021 and February 2022 was $1,2 billion (US$13,7 million) for the importation of raw material and $400 million to meet local costs.
Before the onset of rains, Government distributes seed and other agricultural services through programmes such as Pfumvudza/Intwasa conservation scheme, Presidential Input Scheme, National Enhanced Crop Productivity Scheme (known better as Command Agriculture), more irrigation, the Livestock Growth Plan and the farm mechanisation programme, which all contribute to better harvests.
CBZ chairman Marc Holtznman said the Agro-Yield initiative ensured no more people would borrow multiple loans on the same property as the group was now tracking this with IT systems in place.
He said this year’s farming season was buoyed by a positive rain forecast and growth achieved in the prior season.
“With support from the Government and CBZ, the country became a net exporter of maize for the first time in 7 years,” he said.-eBusiness Weekly
