Source: The Herald – Breaking news.
In an interview, Mutapa Investment Fund chief executive officer, Dr John Mangudya, said: “Through AFC Holding, the fund is putting in place a sustainable scheme for funding agriculture, including implementation of an integrated farmer credit card scheme to enhance efficiency in the distribution of agricultural inputs to farmers. 
Lincoln Towindo
FARMERS contracted under the Presidential Inputs Programme will soon begin accessing agricultural inputs directly from Government-accredited merchants using a preloaded credit card system set to be introduced by the Agricultural Finance Company Holdings (AFC Holding).
Under the integrated farmer credit card scheme, beneficiates of Government’s input support programmes will now be allowed to collect inputs such as fertiliser and seed from accredited merchants without going through centralised distribution points like the Grain Marketing Board (GMB) or Cottco, as is the current practice.
It is envisaged that this shift will help improve efficiency and transparency in input distribution.
Presently, distribution of inputs under the scheme is encumbered by logistical bottlenecks, with farmers often facing delays as inputs are transported to centralised distribution points.
The process also involves multiple layers of bureaucracy, which affects productivity and increases opportunities for abuse. Under the new system, each credit card will be preloaded with a specific allocation due to a farmer, who can then collect inputs after swiping the card from participating suppliers without the need for intermediaries.
The initiative, being spearheaded by AFC Holdings — a government-owned entity under the Mutapa Investment Fund — is designed to eliminate bureaucratic delays, cut out middlemen and curb corruption that has long plagued the inputs programme.
In an interview, Mutapa Investment Fund chief executive officer, Dr John Mangudya, said: “Through AFC Holding, the fund is putting in place a sustainable scheme for funding agriculture, including implementation of an integrated farmer credit card scheme to enhance efficiency in the distribution of agricultural inputs to farmers.
“You are aware of the Presidential Inputs Scheme under which farmers used to get inputs like fertiliser and seed through the Grain Marketing Board (GMB) or Cottco.What we are saying is that we want to transform that through a system whereby farmers get credit cards and go directly to merchants of fertilisers and other inputs under the scheme.”
The new system will allow farmers to swipe for inputs using the cards at accredited merchants, eliminating the need for centralised input distribution points and reducing bureaucratic delays that often hinder timely access to farming resources.
“This improves efficiency and cuts out the middleman and corruption,” added Dr Mangudya.
“It also enhances the information we collect — we will now have real-time data on who received what inputs, when and where.”
Under the new model, each card will be loaded with the specific inputs a farmer is entitled to, based on assessments by banks and agricultural institutions involved in the scheme.
“It’s transformative,” Dr Mangudya said. “We are moving with the times. This system is already being implemented successfully in countries like India and Kenya, and we are confident it will work here.”
The credit card scheme also ties into broader national reforms, including the land tenure and title deeds programme.
By onboarding farmers into formal financial systems, the initiative is expected to increase access to credit and other support services for smallholder producers.“This also assists with the title deeds programme,” said Dr Mangudya.
““Farmers are now being recognised by banks as clients with verifiable records.”The new model draws from the successful digital input distribution programmes in countries like India and Kenya, which have adopted smart subsidy systems to tackle inefficiencies and corruption in agriculture support programmes.
In India, the government rolled out the Direct Benefit Transfer (DBT) for fertilisers, a digital system that authenticates farmers at the point of sale using biometric identification and directly links them to subsidised inputs.
Fertiliser retailers use point-of-sale (POS) machines linked to a central database, ensuring that subsidies reach the intended beneficiaries.
This system has not only improved accountability but also reduced subsidy leakage and pilferage.
In Kenya, the government launched the e-voucher programme under the National Agricultural Input Access Programme (NAAIP), where registered smallholder farmers receive electronic vouchers via mobile phones.
These vouchers are redeemed at authorised agro-dealers for subsidised fertiliser and seed.
The system, supported by the World Bank, has improved targeting, cut down on corruption and ensured timely delivery of inputs.
“These countries have shown that digitising input distribution works,” said Dr Mangudya. “It improves delivery, enhances transparency and ultimately supports food security.”
The integrated credit card system is expected to be rolled out soon.
COMMENTS