The Zimbabwe Commercial Farmers Union said it expected the lifting of sanctions to open up avenues for the banks to access international credit, which they can then lend to farmers.
The US embassy recently announced that the two banks were issued with a general license by the American government, a move that effectively represents the lifting of sanctions on the two institutions.
Credit problems
ZCFU president, Wonder Chabikwa, said the biggest problem facing local farmers was accessing affordable credit.
“We expect the two banks to now be able to source offshore and cheaper funding. This would go a long way towards providing funding to farmers at low interest rates,” Chabikwa said.
Agribank offers agricultural loans, in addition to other retail, advisory, treasury and investment services. In 2012, the bank received $10 million from the government, the current sole shareholder. It is one of the state enterprises the government expects to fully privatise in the short-term.
IDBZ was set up by the government to mobilise resources both from the domestic front and internationally in order to invest in infrastructure development.
According to the US embassy, the general license granted to the two banks permits American individuals and companies to engage in financial transactions with these two entities.
“Americans have been prohibited from doing this since 2008 when the banks were placed on the Specially Designated Nationals sanctions list,” the statement said.
Action for action
The United States said it made clear its policy of meeting “action for action” in response to progress on the “goals Zimbabweans set for themselves in the GPA”.
“We commend as a positive action the recent peaceful constitutional referendum in Zimbabwe. Our policies reflect a continuing commitment to help the people of Zimbabwe restore the stable, peaceful, democratic country they rightly deserve and seek to support democratic institutions, rule of law, and human rights in Zimbabwe,” the statement concluded.
Post published in: News