TN Livestock Trust (TNLT) says Zimbabwe can unlock growth in rural agriculture by converting cattle into a bankable asset that allows smallholder farmers to access credit, insurance, and formal financial services.
This comes as, despite the livestock population increasing to 5,74 million in 2024, from 5,2 million in 2017, the central bank Collateral Registry is still dominated by household goods, with 4 006 reported as of June.
Following household items are private vehicles with a record of 2 597, Notarial General Covering Bonds (1 661), trucks (1 440) and agriculture equipment (955) rounding out the top five.
Yet, the acceptance of livestock as collateral for loans has been ongoing since 2017.
TNLT is a sister company to TN CyberTech Investments Holdings Limited, both owned by respected innovator, banker and businessman Tawanda Nyambirai.
Presenting during the ongoing fourth edition of the In Conversation with Trevor Ideas Festival which is running under the theme The Future of Human Capital, Innovation, and Ethics in the Age of AI, TNLT chief executive officer Ashleigh Nyambirai said Zimbabwe must leverage its agriculture sector.
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She said this was due to the fact more than 70% of Zimbabwe’s population relies on agriculture for their livelihood. “Financial inclusion is about ensuring that no farmer is left behind because they lack collateral or formal income records,” Nyambirai said.
“When a farmer can borrow affordably, insure against losses and invest in better inputs, they can break free from subsistence farming and enter a path of sustainable wealth creation.”
She said although rural communities own about 90% of the country’s estimated 5,74 million herd, this wealth was not recognised within financial institutions unless cattle were being sold or slaughtered.
“Cattle have represented wealth in Africa, yet this culturally significant symbol of wealth is not formally recognised in our institutions, unless it’s being disposed of,” Nyambirai said.
“Using cattle as a bridge for financial inclusion is our way of decolonising wealth in Africa.”
She said cattle owners, especially in the rental areas, were not realising the true value for their cattle, with some being sold for as low as US$190 at a time, against a true value of US$750.
“So, it’s about improving the quality of the herd or creating mechanisms where people are empowered enough to improve the quality of their herd so that they can recognise the true value. There are disparities in the prices of cattle in the communities,” Nyambirai said.
“Prices can be below US$200, with some selling their cow at US$190, or slightly above US$500. But then, the market value of cows right now is over US$750. But rural communities are not recognising the market value of their cows.”
The executive used her presentation to unveil TNLT’s cattle investment model, under which farmers can deposit cattle into secure breeding facilities managed by the organisation.
After inspection and valuation, these farmers receive a negotiable certificate of deposit, which can be used as collateral for loans.
“Our vision for TNLT is to convert cattle into a new bankable asset class against whose deposit tradable financial instruments can be issued to facilitate investment, trade, and commerce,” Nyambirai said.
The model, she said, allowed cattle herds to grow at a guaranteed calving rate of about 30% per year, while the trust covered all husbandry and feed costs.
She added that the system also accommodated investors who want to acquire cattle through cash contributions, enabling people without land or farming capacity to build herds.
“The realisation of our vision will see a significant growth in the incomes of rural cattle farmers beyond US$4 000 per annum in any cattle farming household, thereby helping the country attain its Vision 2030 goal.”
She said the initiative aimed to expand national herd numbers, improve animal quality, and enable rural communities to participate directly in the financial sector.
“Rural communities are not poor. They are holding wealth that is simply not recognised.”