Zimbabwe-China tobacco-for-tractors deal starts

Zimbabwean agro-business dealer Farmers World has started distributing tractors and various other farming implements which it acquired from China to tobacco and other farmers throughout the country. The distribution had been delayed to allow an assessment of the suitability of the farming implements to Zimbabwe’s climatic conditions and soils.

Speaking at the programme’s official launch, Reserve Bank of Zimbabwe Governor Gideon Gono said, "The implements were imported through a loan from China. We advised Farmers World to make sure that beneficiaries would be in a position to generate foreign currency to enable the country to repay the loan. The central bank recommended the delay of the distribution exercise so that government made sure the minimum standards of operability of the equipment for the good of the country and our relations with friendly nations that are keen to help us. It was important to make pre- and post-delivery checks to avoid a repeat of past experiences," said Gono, referring to the furore over inferior quality fertilizer imported from South Africa in 2006.

He said the central bank had recommended that the distribution be spread evenly across Zimbabwe and to all the country’s tobacco farming regions for the sake of transparency. "We also appreiate that some regions do not have tobacco farmers, and have put in place support programmes sustainable in those areas to encourage an equitable distribution of the implements," said Gono. This is part of a holistic approach to the mechanisation programme. Stakeholders should understand that the first part of the programme will not be able to cater for all farmers," he said.

Minister of agricultural engineering,Joseph Made, said he recognised the importance of private sector participation in land reform as the programme would not be complete without its participation. "My ministry will soon open depots to teach farmers how to maintain farming implements that will be supplied to them."

The 424 tractors and other agricultural equipment were secured under the US$58 million dollar loan facility extended to Zimbabwe by China. Under the deal Zimbabwe Farmers Development Company is expected to produce about 30 million kilograms of tobacco during the first year that the crop will be sold to China.

Herald