Zimbabwe: US$60 million government debt leaves seed producers on the brink

Published 2023년 12월 23일

Tridge summary

The Zimbabwe Seed Association (ZAS) has revealed that the Zimbabwean government has incurred over US$60 million in debt, leaving 11 seed companies and growers struggling as banks threaten to withdraw financial support. This debt, incurred for seed supplied in the 2022/23 and 2023/24 agricultural seasons, has left companies unable to access favorable credit facilities and facing high interest rates on loans. The financial strain on the seed sector is unsustainable and could lead to scaling down operations and closing seed companies, resulting in the loss of a well-developed seed sector for national seed security.

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Original content

Source: US$60m govt debt leaves seed producers on the brink -Newsday Zimbabwe OVER US$60 million debt incurred by the government has left 11 seed companies and growers in the cold as banks threaten to withdraw financial support from the sector, the Zimbabwe Seed Association (ZAS) has revealed. The 11 seed producers are Arda, Easi Seeds, Farmbiz Genetics, Intaba Trading, Klein Karoo Seed Marketing, Prime Seeds/Seed Co Vegetables, Quton, Reapers, Seed Co, Tocek and Zimbabwe Technology Solutions. The debt, which was incurred for seed supplied in the 2022/23 and 2023/24 agricultural seasons, has left companies groping for financial assistance from banks and investors to no avail. Zimbabwe is facing an imminent drought caused by the El Niño spell. The debt revelations come at a time when the government is struggling to honour its promise to pay United States dollars for wheat delivered to the Grain Marketing Board (GMB) following a successful 2021/22 winter cropping season. The delay ...

Source: Zimbabwesituation