The Zimbabwe Chamber of Small and Medium Enterprises (ZCSMEs) has partnered AFC Holdings to empower agricultural Small and Medium Enterprises (SMEs) within the ZCSMEs membership to access tailor-made financial services designed to suit their needs.
Their needs include loan products with flexible repayment schedules tailored to seasonal income fluctuations, financing options for the acquisition of essential equipment and technology and investment opportunities for infrastructure development and value addition initiatives.
ZCSMEs secretary general Mr Venencio Kurauone said the collaboration aligns with Zimbabwe's national development goals enshrined in Vision 2030.
"Vision 2030 outlines a clear roadmap for transforming Zimbabwe into an empowered and prosperous upper-middle-income economy by 2030. A thriving agricultural sector is fundamental to achieving this vision. By supporting the growth of agricultural SMEs, we can unlock the potential of the sector and contribute significantly to the national development agenda," said Mr Kurauone.
He said the partnership would not only provide the much-needed financial resources to agricultural SMEs but create a platform for knowledge sharing and capacity building within the sector.
AFC Holdings' expertise combined with ZCSMEs' extensive network can equip these businesses with the tools and knowledge they need to operate more efficiently, enhance their productivity and navigate the complexities of the agricultural market, he explained.
Added Mr Kurauone: "Increased access to financing will enable agricultural SMEs to invest in improved seeds, fertilisers, irrigation systems, and other technologies that can lead to increased agricultural output. This, in turn, will contribute to improved food security for the nation. A more robust agricultural sector can also reduce reliance on food imports, leading to greater national self-sufficiency."
The official advisors to ZCSMEs, Alinial Chartered Accountants managing director Mr Samuel Makuvire said limited access to finance was a major bottleneck hindering the growth of agriculture SMEs.
"We understand the challenges faced by agricultural SMEs. This partnership with AFC Holdings represents a significant opportunity to address this issue head-on. By offering them access to specialised financial products and expert guidance, we can empower them to overcome these hurdles and unlock their full potential," said Mr Makuvire.
He further stressed that Alinial Chartered was working closely with ZCSMEs and AFC to ensure the proposed financial products truly meet the needs of agricultural SMEs.
By fostering a collaborative ecosystem, the initiative aims to create a network of support for agricultural SMEs. This network can connect them with essential resources such as training programmes on improved farming practices, market access opportunities and access to technology solutions that can optimise their operations.
Empowering agricultural SMEs through tailored financial products, knowledge sharing initiatives, and a supportive network, this collaboration can contribute significantly to enhanced productivity, food security, job creation, economic growth, diversification, value addition, sustainability and environmental stewardship.
The collaboration can encourage agricultural SMEs to explore opportunities for diversification and value addition within the agricultural value chain. This could involve activities such as processing raw materials into finished products, establishing on-farm shops, or engaging in direct marketing to consumers.
With an estimated 39 percent of Zimbabwe's 4, 5 million SMEs operating within the agricultural value chain, supporting their growth and development is paramount.
These businesses play a vital role in driving food production, creating employment opportunities, and fostering economic diversification.
However, access to adequate financial resources often remains a significant hurdle for agricultural SMEs. Traditional financial institutions may have limited understanding of the specific challenges and opportunities faced by these businesses, leading to products and services that are not well-suited to their needs, thus the partnership seeks to bridge this gap.