The Zimbabwean government has secured desperately needed loans of close to half a billion United States dollars to help boost agricultural production, it was reported on Thursday.
Nearly half the $490-million in loans secured was provided by key ally China in the form of a $200-million agricultural support deal, the state-controlled Herald newspaper said.
Other loans were negotiated with banks and financiers in France and Africa that will be used mainly to buy agricultural inputs such as chemicals, fertilizer, machinery and seed, the paper said.
”A look at the past agricultural season reveals that major setbacks to our farmers have largely emanated from lack of foreign exchange to import inputs and fuel,” Zimbabwe’s Central Bank Governor Gideon Gono was quoted as saying.
This week, official reports said hopes of a bumper wheat harvest this month had been dashed due to shortages of power and fuel that were needed earlier in the season.
Agriculture, once Zimbabwe’s economic mainstay, has plummeted by at least 40% in the wake of a controversial land-reform programme launched by President Robert Mugabe’s government in 2000.
While close to 4 000 white farmers have had their lands seized for redistribution to blacks, critics say many of the new farmers lack capital, inputs and expertise.
China is emerging as a key economic partner of Zimbabwe.
Stung by Western travel and financial restrictions imposed on himself and key government and ruling party officials, Mugabe has urged Zimbabwean businesses to look East to countries like China, Indonesia and Malaysia for new opportunities.
Earlier this year, the government signed deals with China worth more than $1-billion dollars for the construction of thermal power stations in exchange for chrome. — Sapa-dpa