Published: 11 hours ago

AFC Holdings Limited (AFC) has secured US$28 million in facilities from its parent firm, the Mutapa Investment Fund (Mutapa), and begun monetising its peri-urban land to boost liquidity, NewsDay Business understands.

Back in March, in its financial year report for the period ended December 31, 2024, AFC disclosed that it would fund its 2025 strategic initiatives partly through the monetisation of government-injected land.

The group's capital is anchored in these property assets, which include three idle peri-urban farms now earmarked for disposal to generate working capital.

As of June, AFC's investment properties were valued at ZiG1,51 billion.

In a statement attached to the group's half-year report for the period ended June 30, 2025, AFC chairman James Mutizwa said the group activated an aggressive plan to raise liquid funding and economic capital.


"The group remained adequately capitalised and above the minimum regulatory capital for regulated entities.

"The group activated an aggressive plan to raise liquid funding and economic capital to finance its operations," he said.

"The group also arranged structured facilities of about US$28 million with Mutapa Investment Fund and has already drawn down about US$10 million.

"Significant progress towards the monetisation of its titled peri-urban land has already begun to fund critical business operations.

"The group has also expanded its engagement with development partners for additional and new funding structures."

He thanked Mutapa for the support it had given and continues to give to the group, in particular the lines of credit to strengthen the group's governance, capitalisation, and operations.

During the half-year period, the group reported a stronger balance sheet, with total assets rising to ZiG5,93 billion from ZiG5,63 billion at the end of last year.

Driving this growth was an increase in cash and bank balances to ZiG915,04 million, up from ZiG703,81 million in December 2024, reflecting the impact of new funding inflows and stronger capitalisation.

The rise in cash holdings demonstrates improved liquidity buffers, giving the group flexibility to meet obligations, support lending and cushion AFC's operations in Zimbabwe's volatile environment, while positioning it to channel more resources during this second half of the year.

"The group remains adequately capitalised and above all regulatory minimums. Ongoing engagement with shareholder is underway to secure additional working capital injections to fund loan book growth and support agricultural value chain financing," AFC group chief executive officer Francis Macheka said.

"The group's capital is anchored in land assets allocated by the government of Zimbabwe, and the group is currently seized with land monetisation to turn the land into productive use.

"The group is also exploring blended finance arrangements with development partners to strengthen its capital base without excessive balance sheet strain."

He said capital preservation and growth remained a priority to the group's overall strategic objectives.

"Economic conditions remain challenging, with tight liquidity and limited access to long-term funding," Macheka said.

"However, our diversified product mix, capital support from shareholders, and strategic partnerships position AFC Holdings for a gradual turnaround."

The second half of 2025 will see AFC's loan portfolio expand into high-yield, low-risk sectors such as horticulture exports and agro-processing.

AFC will also focus on accelerating digital transformation to improve transaction efficiency and reduce service costs, strengthening insurance underwriting capacity for smallholder farmers, and streamlining operations to bring the cost-to-income ratio down over the next 12 months.
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