Source: Govt pitches US$1,42bn plan to Danish agric investors – herald
Edgar Vhera
Specialist Writer – Agribusiness
The Government on Monday presented to Danish investors its various policies aimed at promoting private sector investment across the country’s agricultural value chains, as it targets US$1,42 billion in fresh investments.
The initiative seeks to secure a surplus of one million tonnes of maize by 2030.
Lands, Agriculture, Fisheries, Water and Rural Development Deputy Minister, Vangelis Haritatos, delivered the presentation in Harare during engagements between Government officials and a high-level Danish Business Delegation.
The Danish delegation is in the country to explore investment opportunities in food systems, agriculture and clean energy sectors.
Agriculture is strategically important to Zimbabwe’s economy, contributing 13,5 percent to 17 percent to the country’s gross domestic product.
Crucially as well, the sector employs 60-70 percent of the population and provides vital raw materials for industry.
However, its GDP contribution is heavily influenced by factors like weather, with droughts significantly undermining output and economic stability, which has seen the Government adopt various initiatives to drive investment in irrigation infrastructure and climate-proof farming practices.
The policies presented to the investors include the Productive Social Investment Model, the National Enhancement of Agriculture Productivity Scheme (NEAPS), the Village Business Units (VBUs), the Irrigation Development Alliance Model, Mechanisation Alliance Model and the Vision 2030 Accelerator Model.
Additionally, the deputy minister also lectured the investors on the ARDA Vision Incubator Accelerator Model, the Infrastructure 6.0 Model, the Agriculture Machinery and Equipment Leasing Model, the Private Sector Investment Model and the Hub and Spoke Model.
“The country prioritised increased agricultural production and productivity, building resilient food systems, improved food and nutrition security, increased agriculture exports, import substitution and job opportunities for youth.
“A total investment of US$1,42 billion is required in maize, soyabean, sunflower, blueberry, broiler, egg, beef and dairy value chain,” he said.
Investment across the value agricultural chains is required for working capital, farm equipment, and irrigation.
Maize, soyabean and broiler value chains require about US$1 billion of the targeted investment in agriculture.
“Government has put in place investment incentives; rebate of duty for capital equipment import, security of tenure, foreigners allowed to own up to 100 percent of their investment and machinery and equipment allowable as part of equity investment into brown field projects.
“Investors are exempted from income tax for the first five years of operation in Special Economic Zones (SEZ), Build Own Operate and Transfer (BOOT) and Built Operate and Transfer (BOT) and 15 percent thereafter,” he said.
Deputy Minister Haritatos stated that value-added tax (VAT) was levied at 15 percent, while farming inputs and equipment were subject to zero percent VAT.
Zimbabwe has 33,3 million hectares of arable land and offers access to agricultural land through partnerships and joint ventures.
The country also has 10 600 dams with the potential to irrigate two million hectares in six distinct agro-ecological zones.
“Maize production is poised to grow from the current 2.3 to 3 million tonnes, allowing the country to have a surplus of one million tonnes for export by 2030.
“We target to increase production of the drought-tolerant sunflower crop from the current 38 676 to 161 000 tonnes, allowing the export of US$200 million worth of exports by 2030,” Deputy Minister Haritatos said.
Zimbabwe has a fast-growing blueberry sector in the world, with this year’s production expected to reach 12 000 tonnes.
“Zimbabwe’s tasty blueberries can now be exported to China, while talks to export the same to India are ongoing.
“We also call for investors to consider adding our cotton and tobacco, as there are extensive benefits to the country,” he said.
Deputy Minister Haritatos said a kilogramme of cigar could be sold at US$6 167, while locally a kilogramme of raw tobacco fetched less than US$10.
The Danish delegation was led by Afrika Consultancy chief executive, Mrs Florence Charamba Christensen, a Zimbabwean entrepreneur who has been based in Denmark for 26 years.
The delegation included seven world-class Danish companies: Cimbria, a global leader in post-harvest processing technologies; Engsko, an international supplier of grinding mills and milling plants; Poultry Processing Solutions, a supplier of end-to-end equipment for poultry processing and Danish Impact Investment Fund (IFU), which is seeking investments in sustainable food systems and healthcare.
Farmers Cooperative, a producer of potato starch and modified food starches and Dan Bred, one of the world’s leading pig breeding companies with 120 years of genetic expertise and Renewable Energy Developers, which is advancing clean energy solutions across Africa, also participated in the engagements.
Cimbria regional sales manager for Africa, Mr Michael Bjørn, said: “Zimbabwe and Cimbria have 41 years of history together, starting with six grain silo facilities for the Grain Marketing Board (GMB).
Cimbria Zimbabwe was established in 1993 and today the company runs under the name Grain and Seed Technology (GST).
“GST and Cimbria have, since the 1990, delivered projects and equipment for seed lines and food processors, malting plants and breweries and smaller silo plants for commercial farmers.
“Our biggest client in Zimbabwe today is Seed Co, one of Africa’s largest seed-producing companies,” said.
Engsko chief executive, Mr Henrik Wollesen, said his company was established in 1900 in Denmark and had production facilities in Denmark, Ethiopia, India, South Africa and Ukraine.
“Engsko A/S specialises in the production of grinding mills, plants and related equipment as well as mill stones used for grinding different types of grains, spices and coffee.
“Today, Engsko exports to 56 countries throughout Europe, North America, the Middle East, Africa, Asia, the Pacific and Latin America,” he said.
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