| Zimbabwe |
INVESTMENT PRESENTATION
THE PROPOSAL
Hand in Hand is supporting the government to generate action for inclusive, resilient, and sustainable food systems, focusing on investment opportunities related to smallholder irrigation systems, de-centralised agro-procesing centres, and smallholder aggregation.
Poverty
Potential
Efficiency
COMMODITIES AND INTERVENTIONS
Micro-Irrigation system for Smallholder farmers
Development of communal irrigation schemes and boreholes. Solar pumping and conveyancing equipment to smallholder farmers. The country has planned an estimated USD $ 743 million for micro-irrigation systems with IRR of 12% and NPV of USD $ 112.5. This intervention is expected to cover 2.3 million beneficiaries covering 7 targeted micro-regions in the country.
Mechanization – local tractor assembly
Currently, Zimbabwe has 7,983 tractors that are functional, servicing 1,340,045 farmers who are tilling more than 3.4 million hectares. The country is currently importing an average of 600 tractors per annum with high prices, and is in need of additional 32,000 units with an estimated value of US$544million. The country requires at least 1 operational local tractor and implement assembly plant for mid-sized tractors from 40hp to 90hp. With a tractor assembly line, the country can produce and export tractors within the SADC region.
The investment required is 81 million USD with an IRR of 14%, which will benefit 2.3 million farmers. The benefits of the model include saving manual labour, especially for women and increase in production and productivity across all major crops.
Decentralized mechanization hubs
Zimbabwe’s smallholder agriculture sector is generally on a positively drive towards mechanization. Especially smallholder farmers who predominantly use hand tools for primary production and processing. Smallholder farmers have limited access to mechanized equipment and services. Mechanization along the value chain is a key enabler to enhance production and productivity. Therefore, investments are focused on establishment and operation decentralized mechanization hubs with tractors for Tillage and other ancillary mechanized equipment to provide hire services. The plan is to build 18 Mechanization centres in 6 priority micro region.
The investment required is 101 million USD with an IRR of 17%, which will benefit 1.1 million farmers. The benefits of the model include farmers being able to prepare production land in a timely manner. Also, increase in productivity in the maize value chain to 1.7 MT per hectare.