Agribank avails $6m livestock facility

 Agribank avails $6m livestock facility
Published: 26 April 2019
AGRIBANK has availed a US$6 million facility to livestock farmers as part of efforts to boost livestock production across the country. The financial institution has said it is targeting beneficiaries from its existing customers and that new clients will have to open accounts with the bank.

"The bank has secured funding for livestock with a total value of $6 million. The facility conditions and lending modalities are detailed below. Interest shall accrue from the disbursement date to the date the facility is repaid in full," it said in a circular seen by Business Chronicle.

The loan will attract an interest of six percent per annum.

"Interest shall accrue monthly in arrears, and calculated based on a year of 360 days and actual days elapsed, and the total interest due shall be payable on due date. In the event of repayments of the principal being made before maturity of the facility, interest shall be payable on the number of days lapsed," said Agribank.

And as part of some of the conditions of the funding facility, the borrower will utilise the funds accessed for the purposes of livestock purchase, cover inputs and other ancillary costs associated with their livestock enterprises.  

"Additional loans to the same applicants should only be considered upon the bank satisfying itself that previous loans by the borrower were utilised for the intended purpose," it said.

The facility targets all competent livestock producers from small-scale to large-scale including those in sectors such as sheep, pigs, goats and dairy.

Among other eligibility criteria, potential beneficiaries of the facility also need to be Zimbabwean citizens, have proof of land ownership and adequate land for grazing in case of cattle (offer letter, title deeds and 99 year leases), as well as marketing agency for those producing for sale (where applicable).  For all breeding programmes, the bank said applicants are required to include a livestock production plan and each customer will have a maximum limit of $250 000.  

"Most livestock programmes in Zimbabwe generally revolve around cattle. The cattle population in Zimbabwe is about five million. This is despite the minimum to poor animal husbandry practices by most farmers. The business-financing model in this case will not be limited to cattle but will include dairy, goats, sheep, piggery and poultry owners (large or small-scale).  

"Breeding activities are low in Zimbabwe and thus funding will include importing semen, heifers, bulls and all activities to do with breeding (There will be need to source nostro funding for the imports)," said Agribank.

- chronicle
Tags: Agribank,


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