THE Horticulture Enterprise Enhancement Project has invited financial institutions to submit expressions of interest to access a Reserve Bank of Zimbabwe line of credit for on-lending to eligible players in the agricultural value-chain. Zimbabwe trade fair
Financial institutions should submit their EOI by April 29 this year.
HEEP is jointly funded by the Government of Zimbabwe (GoZ – US$5,2 million), the International Fund for Agricultural Development (IFAD – US$37,1 million) and the OPEC Fund for International Development (OFID – US$15 million).
It is an eight-year project targeting to directly benefit 71 000 smallholder farmer households and 50 000 indirectly, by 2031.
HEEP is aligned with the Horticulture Recovery and Growth Plan (HRGP), the Agriculture Food Systems and Rural Transformation Strategy 2 (AFSRTS 2) and the National Development Strategy 2 (NDS 2).
It is promoting inclusive value chain development activities on a nationwide basis.
The overall goal of HEEP is to increase incomes, food security and empowerment for smallholder farmers (SHFs) engaged in profitable and sustainable horticultural value chains.
HEEP’s development objective is to support increased and sustainable horticultural production and sales by SHFs and micro, small and medium enterprises (MSMEs) engaged in horticulture value chains.
The EOI HEEP Loan is open to financial institutions licenced or registered by RBZ, fully compliant with relevant regulations.
“The financial institution should have at least three years of operations on agricultural financing strategy and successful track record in lending to the agricultural sector, especially SHFs and agri-MSMEs, including in the horticulture sector.
“The Government through HEEP is using the line of credit as one of the main instruments for channelling debt financing to the key market actors and address current gaps in the provision of affordable working capital and investment credit to agribusinesses in specific value chains,” read the notice.
HEEP will directly reach 71 000 SHF households, of which 31 000 will be from village business units (VBUs) and an additional 20 000 coming from public, private, producer, partnerships (4Ps) who will benefit from improved production, post-harvest handling, local market access and capacity building.
“HEEP intends to develop VBUs in 20 districts of arid and semi-arid areas of Matabeleland South, Manicaland, Masvingo and Midlands.
“4Ps will mobilise SHFs on a nationwide basis, selected based on market conditions and agricultural potential,” added the notice.
RBZ has been selected as the host institution for horticulture revolving fund (HRF) that will disburse funds to partner financial institutions for on lending to 4P partners and VBUs.
“Qualifying business plans will be financed through two financial instruments established and financed by HEEP; a Matching Grant Facility (MGF) and/or HRF.
“Eligible VBUs may also access the HRF to finance inputs and other operational expenses,” disclosed the notice.
RBZ will be in charge of the management of the LOC and the LOC will be a loan from the GoZ to the RBZ.
The financial institutions should have the capacity to service agriculture producer groups (APGs) and/or rural MSMEs.
The submitted information by financial institutions will be used by HEEP to assess their eligibility to proceed to the due diligence phase.
Financial institutions with satisfactory due diligence will be invited to submit their full proposals.-herald
