Finance for agriculture: The Create Fund credit facility for Zimbabwe smallholder farmers

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.

Targeted beneficiaries

The CREATE FUND credit facilities will be lent to:

  1. Agrodealers
  2. Contracting companies
  3. Agro processors
  4. Traders
  5. Transporters
  6. Wholesalers

Basically all agricultural sectors except tobacco and cotton are eligible for the credit facilities.

General Terms and Conditions

  1. 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.
  2. The on-lending banks will assess the applications for creditworthiness and the extent to which the applicants meet the set criteria.
  3. Applicants will not be required to have had a prior banking relationship with the on-lending banks.
  4. 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.
  5. 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.

EntrepreneurCrunch Commentary

  1. 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.
  2. From the press release, it is not clear on the minimum or maximum amounts for any disbursement.
  3. The disbursement criteria has been left at the mercy of FBC Bank and NMB Bank, and one hopes that it will be favourable.
  4. The issue of security is also not clear.
  5. 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






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3 Responses to “Finance for agriculture: The Create Fund credit facility for Zimbabwe smallholder farmers”

  1. Angelbert Deketeke

    Sep 07. 2012

    Augublic Farming is a small trading company that is involved in pulses, oils, grains,cereals,protein, and small grains. The only way way to create value for small scale farmers is to have mini processing plants for say tomato and soya within a reasonable distance from the farmers. Supply agronomy services, transport and logistics and process and add value.
    We fear, as noble as create fund sounds, its accessibility will be curtailed by need for security by the on-lending banks. We have had a scenario were we opened a butchery outlet in Gazaland, bought cattle and small livestock in mainly Mutoko ,slaughterd at National Sheep and Goat and cooked the offals at our Harare street downtown take away. The cycle is vicious and we have literally ground to a halt as its self financing. We dnt have collatorial besides a 7 tonner truck we were re-building and , a tractor, and a personal vehicle. The intention was to offer transport to to the farmers, the tractor offers drought power, the outlets offer a value added market. This has come to a standstill as bigger players like Koala and Montana have been getting access to cheaper funding like Africa Challenge Fund who require matching funds by the investor.These have taken over the beef retail sector.
    There are smaller tomato paste/ketchup manufacturing plants that can be ideally located at Mutoko and we can offer our truck to do rounds and collect produce instead of scenarios were at times tomato farmers leave their crop to waste in the fields because of expensive transportation. Equally, with an investment of about USD10 000 one can start a soya milk dairy in the initial year and the next year offer seed and input packets to farmers and add value to soyas grown on a quarter of an acre by an individual family with the plant doing up to 600litres of milk per day. There is no competitive dairy industry here as the dairy herd was deceminated. It is us the small guys that continue to be stuck- imagine we need only USD3500 to get the truck on the road , enough to buy 2 truckloads of cattle(14 beast per load and allow for 21 day termsfrom end abaittor-but no how many Montana, Koala, Surrey Abbaitoitors does one see coming up even Colcom? The cake is big but we are hamstrung by lack of capital.The industry we know very much and our overheads are minimum. A 7 tonner can effectively earn us USD400/week just carrying tomatoes but all our investments are stuck because there is no working capital. The banks will demand hundreds of things and eventually turn you down because you dont have collatoral.
    We have been involved in trade from ZIMACE days but were always the marginalised guys.
    Angelbert Deketeke 0773048094

    Reply to this comment

    Apr 10. 2013

    for the business level headed..across all boards

    Reply to this comment
  3. nobuhle

    Apr 15. 2013

    Gud news to hear, BUT l went to the bank and was attended to by a loan officer who was not willing to part with information, instead he advised me to take a personal loan until l asked him about the create fund, thus when he said it’s there but you will not get it at all as they will want the following:- Company profile/Business plan, financials 2011 and 2012, cash-flow projection 2013/14 & security. He later on referred me to SVN, and advised me to go and get someone who will go and assess my plot. Honestly speaking what does one have to do to get the loan? pliz help

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