AfreximBank US$2 billion facility puts Zimbabwe’s agricultural exports in focus

Oliver Kazunga-Senior Reporter

ZIMBABWE could unlock new agricultural export opportunities through increased investment in production, irrigation and agro-processing under a US$2 billion facility unveiled by the African Export-Import Bank (Afreximbank), as the country seeks to expand its participation in regional markets and earn more foreign currency.

The facility is expected to support primary agricultural production, processing and exports, with Afreximbank urging Zimbabwean businesses to develop bankable projects capable of attracting funding and delivering commercially viable returns.

The initiative presents an opportunity for local agribusinesses to expand production and move beyond exporting raw commodities towards higher-value processed products for regional and continental markets.

Speaking at the 19th Common Market for Eastern and Southern Africa (Comesa) Business Forum in Harare on Tuesday, AfreximBank director of trade facilitation and investment promotion Dr Gainmore Zanamwe said the bank had resources available to support agricultural value chains but needed viable investment proposals.

“At AfreximBank, we developed a US$2 billion facility that will support primary agriculture, production, processing, and export.

“The money is there, what we need are bankable projects,” he said.

The financing comes as Zimbabwe seeks to strengthen agricultural productivity, improve food security and increase exports through greater investment in irrigation and the processing of locally produced commodities.

Agriculture remains central to the economy, supporting the livelihoods of more than 60 percent of the population and accounting for 23 percent of formal employment, 63 percent of manufacturing raw materials, 30 percent of export earnings and 15 percent of Gross Domestic Product.

Expanding the sector’s productive capacity could therefore have wider economic benefits by increasing supplies to manufacturers, creating employment and generating additional export revenue.

Afreximbank is looking to identify anchor farmers and large-scale agricultural projects that can drive production while creating opportunities for smallholder farmers, suppliers and processors.

Dr Zanamwe said individual projects could attract investments ranging from US$100 million to US$500 million, depending on their scale and commercial viability.

For Zimbabwe, potential investment opportunities include expanding irrigated crop production, strengthening horticultural exports and developing processing capacity for agricultural commodities destined for regional markets.

However, the scale of these opportunities will depend on market demand, production costs, access to infrastructure and the ability of local businesses to supply products that meet buyers’ quality and delivery requirements.

Increased investment in agro-processing could also help the country retain more value from its agricultural output by exporting finished or semi-processed products instead of relying solely on raw commodities.

Source: AfreximBank US$2 billion facility puts Zimbabwe’s agricultural exports in focus – herald

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