The Sunday News
Judith Phiri, Business Reporter
THE Horticultural Development Council (HDC) has said it will continue to lobby for policies and a business environment that will encourage foreign and local investment into the sector.
This is a development that will ensure the horticulture sector meets its target of becoming a US$1 billion industry by 2030.
Horticulture contributes about 6,5 percent to total agricultural output and 0,7 percent of Zimbabwe’s total Gross Domestic Product (GDP). The entire agriculture sector earns the country more than US$77 million in export revenues at present.
Responding to questions from Sunday News Business, HDC chief executive officer (CEO) Ms Linda Nielsen said they have been exploring inclusive growth models for the development of horticulture in the country.
“Although this has offered some relief to producers we will continue to lobby for policies and a business environment that will encourage foreign and local investment into the sector in order to meet our target of becoming a US$1 billion industry by 2030.
“HDC has been exploring inclusive growth models (hub and spoke) for the development of horticulture in Zimbabwe with a particular focus on small-holder, youth and women,” said Ms Nielsen.
“However, lack of inclusive funding remains an impediment to the development of these and incentives to attract investments into the aggregation hubs that would contract small holder farmers.”
She said HDC will continue working towards partnerships to pilot models for citrus, coffee and avocado among others, as well as alternative funding models to suit the sector and cheaper finance for the commercial sector.
Ms Nielsen said for 2023, their main calendar event would be the annual Investment Forum and Exhibition which they are planning for May.
Ministry of Lands, Agriculture, Fisheries, Water and Rural Development
“The main objective of this event is to raise awareness of the horticulture business cycles, investment requirements and the impediments to attracting this, but most importantly it’s an opportunity for industry to put forward policy recommendations to unlock investment,” she said.
She said another vital focus area was market access and in order to remain competitive, it was imperative that Zimbabwe diversifies its markets for horticultural produce.
Ms Nielsen said this will give the country the ability to respond quickly to immediate challenges, for example, port and shipping disruptions.
“HDC is working with the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development to complete the China protocol requirements for citrus and open up access to this market.
“This has been followed closely with application for blueberries, avocado and chilies access and we await response from Chinese Customs Authorities on this application,” said Ms Nielsen.
She said the process was incredibly slow and timing was critical as markets do not wait and they need to gain excess to China and others to allow exporters to take advantage of the early supply window and maintain price advantage.
Ms Nielsen said Zimbabwe’s reputation for quality and premium products was growing, hence demand was there and also there was a need to be able to respond with consistent supply before regional competitors.
Looking at 2022 key highlights, she said: “On the policy and enabling business environment side HDC had some good engagements during the year, with main wins being a reduction in compulsory liquidation from 40 percent to 25 percent.
There was extension of retention of export earnings increased to 120 days and exemption of retention on foreign investments through the Zimbabwe Investment and Development Agency (ZIDA).”
Ms Nielsen said all new exports were also exempted from compulsory liquidation to encourage new exporters, while other highlights were the ability to repay foreign loans registered through local commercial banks, prior to liquidation, as well as reduction in Intermediated Money Transfer (IMT) tax from four percent to two percent.
As the revival of the horticulture sector is on course, the Government continues to step up efforts to explore new markets while reclaiming traditional ones.
The sector last year in September saw a major facelift when Government launched a US$30 million Horticulture Export Revolving Fund (HERF) to reboot the sector.
