According to a press release by Sabi Consulting, a revolving credit facility, Credit for Agriculture Trade and Expansion (CREATE FUND), has been established by the Zimbabwe Agriculture Development Fund Trust (ZADT) to provide funding to agriculture value chain actors with the ultimate aim of improving productivity and incomes for smallholders farmers.
The on-lending banks are FBC Bank and NMB Bank.
The CREATE FUND credit facilities will be lent to:
- Contracting companies
- Agro processors
Basically all agricultural sectors except tobacco and cotton are eligible for the credit facilities.
General Terms and Conditions
- In order to access the credit facilities eligible applicants shall complete the relevant application forms which are available from any branch of FBC Bank and NMB Bank.
- The on-lending banks will assess the applications for creditworthiness and the extent to which the applicants meet the set criteria.
- Applicants will not be required to have had a prior banking relationship with the on-lending banks.
- The credit facilities will have tenors of between 3 and 12 months with opportunity to roll over the facility once. The tenors may be varied on a case by case basis.
- The credit facilities will attract an all-in cost of 11.5% per annum payable on terms and conditions set out by the relevant on-lending bank.
- This is a great funding opportunity for serious agribusiness entrepreneurs and go for it as business financing is very scarce in Zimbabwe. The interest cost of an all-in 11.5% is a major plus on the fund.
- From the press release, it is not clear on the minimum or maximum amounts for any disbursement.
- The disbursement criteria has been left at the mercy of FBC Bank and NMB Bank, and one hopes that it will be favourable.
- The issue of security is also not clear.
- EntrepreneurCrunch will find more details on the CREATE FUND.
The fund is being managed by Sabi Consulting. Contact details below.
27 Lezard Avenue,
Milton Park, Harare
Telephone: +263 4 253786/253787/799567