GOVERNMENT has provided vast amounts of peri-urban land for the capitalisation of AFC Holdings Limited and its subsidiaries, an official has revealed.
The government is the single largest shareholder for the agricultural entity.
In July 2022, legislators were told that the government had given AFC Holdings 10 000 hectares of land valued at US$500 million to help capitalise its operations and establish itself as an agricultural financing engine.
In a statement accompanying its financial results for the half year ended June 30, 2023, AFC Holdings Limited chairperson JamesMutizwa said with the land at the entity’s disposal, there were various options available.
“The government as the shareholder availed and will continue to avail peri-urban land towards capitalisation of the AFC Holdings and its subsidiaries. The objective of the land for capitalisation includes efficient urban development, effectively raising money for the government and raising capital for the AFC group,” he said.
“There are various options available to unlock value from the peri-urban land such as agro-residential plots. AFC Holdings appreciates this shareholder’s support as it ensures that the group is adequately capitalised to fulfil its mandate on agricultural development.”
In the period under review, AFC Holdings subsidiary, AFC Land and Development Bank, recorded a profit after tax of ZWL$26,9 billion from a 2022 comparative of ZWL$1,1 billion.
This comes after the bank contributed 13 170 hectares for the 2022/23 summer cropping season used to grow maize, wheat, soyabeans and small grains.
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Resultantly, the bank’s loans totalled ZWL$53,8 billion which went into growing crops.
Mutizwa said livestock, plantations, fisheries and horticulture had also been funded.
“The Land Bank will continue supporting all categories of farmers as it contributes towards attaining food security and self-sufficiency for the country. The AFC Land and Development Bank strives to provide funding that is low-cost and adequately tenured,” he said.
“The bank is present in the country’s 10 provinces and will continue to expand to the districts as it increases its footprint across the country.”
The group’s total assets rose to ZWL$941,85 billion at the end of June, driven by revaluation of investment properties and an increase in loans and advances.
“The group acknowledges the support being received from the government in raising lines of credit and grants from development partners, which has enabled the financing of strategic, disruptive and transformative agricultural projects,” AFC Holdings group CEO Francis Macheka said.
“The group has benefited from a strategic partnership with the African Development Bank and the Food and Agricultural Organisation in both grants and lines of credit. Growth in such funding structures will enable the group to raise adequate funding that has appropriate tenure and cost.”
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