Zimbabwe is facing challenges with regard to the issues of low productivity and high poverty levels. The smallholder farmers face several challenges including minimal use of necessary inputs for increasing production and productivity such as hybrid seed, fertilizer and herbicides. This is mainly due to among other issues, inadequate access to quality seed and related inputs, unstable prices and liquidity challenges in the country.
This policy brief summarises for policymakers, evidence-based choices of appropriately structured financial innovations which are compatible with risk mitigation policy strategies and instruments being implemented in Zimbabwe. It explores the potential to align some of the identified innovations to the operations of microfinance institutions (MFIs) and banks in order to enhance their ability to service smallholder farmers without being too dependent on donor funds or government subsidies.
This paper examines the following:
• Zimbabwe’s agricultural spending against alternative spending strategies known to help achieve pro-poor growth;
• Examine the extent to which current spending approaches to agriculture engage the majority of the rural smallholder farmers;
• Assess the country’s progress towards CAADP targets, Africa’s policy framework for agricultural transformation