Source: ZFU and Empower Bank partner to drive financial inclusion for farmers – herald
Elita Chikwati
Agriculture News Editor
The Zimbabwe Farmers union has signed a Memorandum of Agreement with Empower Bank to boost funding access for smallholder farmers, with a focus on women and youth in rural areas.
Under the agreement, ZFU will act as an agent for Empower Bank which will use the union’s wide network and decentralised offices to expand its reach.
The move is expected to benefit thousands of smallholder farmers who no longer have to travel long distances to open bank accounts or access agricultural funding.
A number of smallholder farmers have been experiencing challenges accessing funding due to a lack of collateral and, in some instances inaccessibility of financial institutions.
Speaking on behalf of Empower Bank, acting chief executive, Mr Christopher Mwerenga, after officially signing the agreement, head of business development, Mr Enodiuos Makiwa, said the agreement will boost financial inclusion and empowerment of rural communities.
“Empower Bank is represented in five provinces out of the 10, which means we have a gap in terms of the other provinces. Within the provinces where we are present, we have a gap in terms of district representation,” he said.
“So, this partnership enables Empower Bank to leverage the structures of ZFU to distribute its products and services to the entire population of Zimbabwe, particularly in the rural areas, also covering people like small-holder farmers, most of whom also happen to be youth, which falls into the mandate of Empower Bank.
“We have certain products and services that are designed to support the vulnerable groups of the population, which are mostly women and youth.
“These products are designed in partnership with our developmental and NGO partners, especially the Zimbabwe Agricultural Development Trust (ZADT), with whom we are working on a facility called the ZADT Causeway facility, which is targeting women and youth in the agricultural value chain, outside tobacco and cotton,” he said.
Mr Makiwa said another facility, ZADT Ignite, was meant for the youth in entrepreneurship, targeting those in agriculture, solar energy and those in paper and waste recycling.
He said farmers could access loans in cash or for farming inputs and machinery. , the
ZFU secretary general, Mr Paul Zakariya, said this facility will enable farmers to be formally involved in business.
“We are excited because of this initiative. We do commit to ensuring our offices throughout the country will be used for this purpose and that this relationship brings the result that is desired.
“The agreement is coming in very handy. This is the beginning of the marketing season and most of our farmers struggle with how they should get paid.
“Some farmers insist they want their payments in cash because they do not have banking facilities. So if one has at least a bank account, they are paid directly into their account. It is convenient and quite efficient and minimises some of the risks that are known,” he said.
ZFU operations director, Dr Prince Kuipa, said this facility will help farmers because there were no complicated requirements for one to be bankable.
“ZFU will also facilitate loan applications and approvals. Our role is to bring the bank closer to the farmer, who is our member and now farmers can be paid in the comfort of their homes.
“This initiative is actually bridging the digital divide, where a farmer must physically walk to a shop and carry cash. Now, they can swipe and even buy goods online,” he said.
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