AGRICULTURAL DEVELOPMENT ASSISTANCE FUND

The Agricultural Bank of Zimbabwe administers the funds Types of Funds

Short-term Loans

Loans repayable over a maximum term of one and a half years and is targeted towards

. Food and cash crop production in terms of land preparation

. Purchase of agricultural inputs

. Working capital requirements for fuel, labour as well as for stock feed and veterinary expenses in dairy and livestock fatteni

. Establishment of stock watering facilities

. Financing of bush clearing, fencing and irrigation development.

Maximum and Minimum Loan Sizes

. The minimum loan size of ADAF is $75000

. The maximum loan size is $4 million

Interest rates

Funding schemes available

1. Individual Lending

Targets individuals with viable agricultural project proposals in the smallholder sector

2. Group Lending

Targets groups that consist of five to fifteen small holders staying within the same locality are bound by a group constitution operate a group savings account and with similar project interest

3. Linkage Programme

Targets the following organisations

. Micro Finance Institutions

. Non- governmental organisations for on-lending to smallholder farmers or self help groups [SHGs]

4. National Farm Irrigation Fund

1t covers irrigation development in the smallholder sector covering

. Borehole drilling

. Purchase of pumps and pipes

. Related in-field works

It has special interest rate of 8,75% per annum.

5. Rural Input Supply

Targets rural enterprises based at service centrs or growth points to establish and develop rural outlets for stocking agricultural inputs such as:

. Seeds

. Fertilizers

. Any other agricultural equipment for resale to small-holder farmers

6. Rural Agro-Business

Targets smallholder farmers to establish and or develop rural agro enterprises such a:

. Oil expression

. Milling