As part of a funding package secured under the International Monetary Fund (IMF), Zimbabwe is dedicating USD 30M (Of a total of USD 80M) to the development of horticulture-related projects the Chronicle reports as the government aims to empower farmers. The horticulture sector represents a prominent industry in the country despite recent contraction experienced due to a stronger US dollar currency and higher air freight rates for shipment of produce which resulted in decreasing earnings.
Professor Mthuli Ncube, Zimbabwe’s Minister of Finance and Economic Development, disclosed funding injection plans secured by the International Monetary Fund, which would see approximately USD 30 million invested in the horticulture sector as part of a revolving fund to empower farmers to initiate horticulture projects and acquire value addition facilities enabling dehydrating, freezing, canning, bottling, extracting, juicing and concentrating their produce. It has on the global market in an effort to improve the sector and its competitiveness.
Despite its importance for the country’s economy, the horticulture sector experiences contractions linked to stronger US Dollar currency and higher air freight rates as the country relies heavily on exports to Europe and the UK paid in Euro or Pounds the Herald reports. In addition, higher fuel costs for transport, the infrastructure as well as the South African ports contribute to hampering the growth of the sector experienced in the precedent years.
Image provided by Mark Stebnicki