Bulawayo, (New Ziana) –The Zimbabwe government should urgently overhaul the agricultural financing systems to support smallholder farmers for the country to realise its vision of establishing a US$50 billion agro-economy, an expert has said.
Livestock and Meat Advisory Council (LMAC) chief executive officer Reneth Mano said this in an interview with New Ziana on the sidelines of a livestock and meat producers stakeholders engagement indaba on Monday.
Zimbabwe aims for a US$50 billion agricultural economy, a key component of its Vision 2030, which envisions an upper-middle-income status with a US$50 billion Gross Domestic Product.
Mano said the lack of accessible and well-structured funding is stifling growth in the livestock sector, which holds significant untapped potential for rural economies.
“Without properly structured financing, all our dreams and hopes of achieving a $50 billion agricultural economy will not be realised,” he said.
He pointed to the undercapitalization of key financial instruments, such as the Agricultural Credit Guarantee Facility, which remains ineffective due to unpaid defaults.
“Banks are now reluctant to lend, even with government guarantees, because the funds are not backed by real liquidity,” he explained.
Mano said smallholder farmers are critical to the country`s food security, adding that despite their role, they remain marginalised in financial systems.
“Right now, when lenders look at smallholder agriculture, they only see risks. We must shift that perception to one of opportunity.
“If we don’t, we will continue losing potential profits to inefficiencies like middlemen who deduct $40 per day from farmers’ earnings just to transport cattle. Smallholders are not just farmers, they are rural entrepreneurs. Yet banks see them as risks, not opportunities,” he said.
To address the challenge, Mano proposed recapitalizing the Zimbabwe Agricultural Investment Fund (ZAIF), attracting Diaspora investments, insurers, and development partners and ensuring professional fund management with guaranteed minimum returns.
“There is a need to strengthen farmers cooperatives to improve bargaining power and reduce costs. We need to promote specialized value chains such as separating breeding, backgrounding, and finishing to attract targeted financing,” he said, adding there was also stagnation in beef production where per capita consumption has gone down since 1980.
Mano, however, said poultry has thrived due to innovative informal markets offering credit and bulk sales, adding the sector’s growth shows what is possible when farmers adapt and financial systems respond.
“Poultry’s success proves innovation and credit access can transform livelihoods. Let’s replicate that in beef and dairy,” he said.
New Ziana
