ZIMBABWE’S largest bank by deposits CBZ is back on the market seeking $35 million in Agricultural Marketing Authority (AMA) bills to finance the current soya beans cropping season as liquidity constraints continued to beset the economy.
Business Reporter
In a statement yesterday, AMA announced it had plans to issue up to $35 million worth of bills to finance the production of soya beans in the 2013-2014 season through CBZ Bank.
AMA, according to the statement, said the bills had a tenure of 272 days and had an interest rate of 10,5% per annum.
“The Agricultural Marketing Authority intends to issue AMA bills of up to $35 million to finance production of soya beans in the 2013/2014 season,” the statement read in part.
“CBZ Bank hereby invites investors including, but not limited to, pension and provident funds, insurance companies, life mutual, commercial banks and other interested institutions as well as individuals in Zimbabwe to subscribe for AMA Bills.”
Official figures showed that the national demand for soya beans was in excess of 300 000 tonnes.
“There is scope for increasing production considering potential growth in the poultry and piggery industry and the demand for cooking oil. Demand for chicken alone is around 3 000 tonnes of meat per month,” AMA said.
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“Currently, the country is importing in excess of 1 500 tonnes of chicken per month. Local production is low because of inadequate supply of feed, especially soya beans which provide the protein.”
According to former Finance minister Tendai Biti’s mid-term fiscal policy statement, the 2013 soya bean output has been revised downwards to 76 900 tonnes from the initial projection of 114 800 tonnes due to lower yields as a result of a poor rainy season.
Biti said the country required about 220 000 tonnes of soya beans per year.
Experts said agriculture, once the mainstay of the economy, has since the adoption of multiple currencies been hamstrung by underfunding, dilapidated infrastructure and high cost of utilities.
