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The Zimbabwe Seed Association (ZAS) has revealed that 11 seed companies in the country are facing a financial crisis due to a debt of over US$60 million incurred by the government. The debt, which is related to seed supplied for the 2022/23 and 2023/24 agricultural seasons, has left these companies struggling to secure financial support from banks and investors.
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. They all indicated that they are heavily borrowed and are failing to timely service the bank loans, <a href="https://www.newsday.co.zw/business/article/200021247/us60m-govt-debt-leaves-seed-producers-on-the-brink">NewsDay</a> reported citing a ZSA memorandum dated December 18, 2023. Read the memo in part:
<blockquote>
Some members have reported that they have defaulted on bank loans. Relationships with banks are now at their lowest level, seed companies cannot be trusted and hence are failing to access favourable credit facilities including the productive sector facility.
Those able to persuade banks for additional loan facilities are getting very high interest rates, which is very costly.
Companies have failed to access forex to timely import seed necessary to close supply gaps and this includes hybrid seed of sunflower and sorghums as well as parental seed which will help localised certified seed production.
In the past few days, we submitted a request of US$15 528 334,58 from six ZSA members and so far, got no response.
</blockquote>
The situation has been worsened by the imminent drought caused by the El Niño spell. The debt issue comes at a time when the government is also struggling to pay farmers in US dollars for wheat delivered to the Grain Marketing Board (GMB) after a successful winter cropping season.
According to a memo, the companies have been unable to import necessary seeds due to a lack of foreign currency, leading to supply gaps. The financial distress is unsustainable and could result in the closure of seed companies, jeopardising Zimbabwe’s national seed security.
The financial strain has also affected the growers, with many not receiving full payment for the seeds they delivered. Some growers are demanding payment in US dollars, similar to other sectors such as maize and wheat. ZAS has urged the government to expedite payments and consider paying part of the debt in foreign currency. They have also called for supportive financial programs and tax breaks to help the seed sector recover from the crisis.
Earlier this year, Zimbabwean seed producers highlighted that they were facing challenges such as high interest rates and limited access to funding. The current financial crisis further exacerbates these issues and threatens the stability of the seed sector in the country.
<h3><a href="https://www.pindula.co.zw/">More Pindula News</a></h3>

Pindula News

Seed Companies Facing A Financial Crisis Due To A Govt Debt Of Over US$60 Million

Greenfuel, a company run by multi-millionaire Billy Rautenbach, has given villagers from Chinyamukwakwa Village in Chipinge two months to harvest their crops and leave their ancestral land.
The company was leased the land that was once used by the Agricultural And Rural Development Authority (ARDA) in Middle Sabi and Chisumbanje.
Greenfuel is now expanding its boundaries into areas settled by the villagers. Currently, the company has over 40 000 hectares of land.
Professor Lovemore Madhuku, who is representing the villagers, accused Greenfuel of greediness. He said:
<blockquote>The company accepted that it can not plough down unharvested crops owned by the villagers and has given up until possibly August for them to finish harvesting. We are preparing court papers against this.
The company is just greedy, if they admire good land, they will just grab it. They are taking law into their own hands.</blockquote>
Headman Chinyamukwakwa and his community are blaming their MP Enock Porusingasi (ZANU PF) who they accuse of supporting Greenfuel against the people who elected him into office.
They also blamed District development Coordinator (DDC) William Mashava and chief Garahwa. Said Chinyamukwakwa:
<blockquote>Who will fight for us when all these people are involved. The MP and the DDC are on Greenfuel’s side.
The MP is giving away our land to Mr Rautenbach. We were born and bred here and this is our land.</blockquote>
Greenfuel spokesperson Merit Rumema told Chipinge Times to send questions via email but she did not respond.
<h4>More: <a href="https://masvingomirror.com/billy-gives-chipinge-villagers-two-months-to-leave-their-homes/">Masvingo Mirror</a></h4>

Greenfuel Gives Chipinge Villagers Two Months To Leave Their Homes

A senior government official has directed the Agriculture and Rural Development Authority (ARDA), a farming parastatal, to hand over one of its estates to the ruling ZANU PF party.
In a letter dated 26 June 2020, the Minister of Lands, Agriculture, Water and Rural Resettlement Hon. Air Chief Marshal P. Shiri (Rtd) requested ARDA’s Acting Chairman J. Makado to transfer Nijo Estate comprising eight (8) properties to the ruling party. Shiri wrote:
<blockquote>It is noted that Nijo Estate comprising eight (8) properties as reflected in the attached copy of General Notice 286 of 1983 were handed over to ARDA in October 1984.
Cognisant of the ownership history of this property His Excellency the President of the Republic of Zimbabwe Cde E.D. Mnangagwa has authorized the transfer of the Estate to ZANU (PF) hence this submission to you to inform the Board accordingly.
I will be grateful to receive your response urgently.</blockquote>
ARDA is a Statutory Body governed by the Agricultural and Rural Development Act (Chapter 18:01). It operates a number of estates around the country which include Balu, Sanyati, Muzarabani, Mushumbi Pools, Katiyo Main Estate, Rusitu, Magudu and Kairezi.
<blockquote><img alt="Image" decoding="async" src="https://pbs.twimg.com/media/EcJ1BdYX0AA2OKj?format=jpg&amp;name=medium"/></blockquote>

ZANU PF Grabs Government-owned Estate

Obert Mpofu has been accused of neglecting an Arda farm he runs and abusing a solitary 94-year old employee at the farm. The 90-year-old man, who is of foreign descent, is said to be taking care of the farm.
Parliamentarian James Maridadi disclosed the situation at the farm during a debate on Parliament’s public accounts committee (PAC) report on Arda last week:
<blockquote>Mpofu is one of the individuals in ownership of one of Arda’s estates, and we went to visit the estate as a committee. I tell you if we were to show you the pictures of that estate, every one of you will be angry.
The person who was said to be taking care of the estate is an old man around the age of 90 years [and] of foreign descent, and he told MPs that he was a security guard at the farm.
I will not even be surprised if one day that old man is found dead, and what Mpofu is doing to him is gross violation of human rights — and for it to be done by a minister in government is immoral, inhumane and despicable
The old man cried and said he had not been paid for months
It is sad that Mpofu is a man of means, but the house where the guard lives is fit for a dog, the blankets were not washed and there was a strong stench coming from the house.</blockquote>
More: <a href="https://www.thestandard.co.zw/2018/06/10/obert-mpofu-fire-employee/">The Standard</a>

Obert Mpofu Accused Of Abusing 90-Year Old Employee At Neglected Arda Estate

Vice President, General Constantino Chiwenga’s wife, Marry is alleged to have grabbed the farm belonging to the Agriculture Rural Development Authority (Arda). The 300-hectare farm is located along Domboshawa Road and was used to produce crop seed for farmers. Marry is reported to have claimed that she wanted to build a school at the location after failing to get the property in 2013. A former worker who spoke to the weekly publication, the Zimbabwe Independent said,
<blockquote>On 15 February, they took over Arda Seeds. Mary said to workers ‘this is our farm.’ It was not the first time that Chiwengas came to the farm. In 2013, they came and said they wanted to build a school.</blockquote>
Armed men who are protecting the property told The Zimbabwe Independent,
<blockquote>Arda Seeds is no longer here; this is now the vice-president’s property</blockquote>
Marry Chiwenga who also calls herself the Second Lady of Zimbabwe said that the Ministry of Lands, Agriculture and Resettlement was fully aware of the matter. Said Marry,
<blockquote>The best I can do is to direct you to the ministry. They know everything about this matter. You can speak to the director of lands.</blockquote>
More: <a href="https://www.theindependent.co.zw/2018/04/13/chiwengas-wife-grabs-arda-farm/" rel="noopener" target="_blank">The Zimbabwe Independent</a>

Marry Chiwenga Grabs Arda Farm

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