Arda owes Iran $11m

The government-owned Agricultural Rural Development Authority is reeling under a $11 million debt it owes Iran for the procurement of tractors during Zimbabwe’s economic meltdown.

This was revealed by Arda Board Chairman, Basil Nyabadza, to members of the portfolio committees for Energy and Mining, as well as Higher and Tertiary Education, Science and Technology.

The two portfolio committees were on a fact-finding mission since the closure of the Chisumbanje Ethanol plant two months ago. The tractors are now run down due to lack of maintenance and spare parts and are being kept at the Arda workshop in Chisumbanje.

Nyabadza said the tractors were purchased as part of a government-to-government deal, under President Robert Mugabe’s Look East policy. He argued that making fuel blending a mandatory requirement in Zimbabwe would help Arda, a partner in the ethanol producing plant in Chisumbanje, offset its debt.

“Arda needs money to offset this hanging debt and only if we sell our product can we raise funds to pay off this debt,”Nyabadza told the MPs during a recent tour of the Chisumbanje ethanol plant.

Post published in: Agriculture

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