The Create Fund (Credit for Agricultural Trade and Expansion), a revolving credit facility of the Zimbabwe Agricultural Development Trust (ZADT), was officially launched on the 5 of September 2012. The Create Fund was established to provide credit facilities to agriculture value chain actors, with the ultimate aim of helping to improve productivity and income of smallholder farmers in Zimbabwe. The Fund is in line with the concepts of Inclusive Business as it combines sustainable and inclusive development values with business approaches to make a difference by creating access to finance, employment and increasing incomes.
How the Create Fund Works Speaking at the official launch, Mr Herbert Makuwa, Managing Director, Sabi Consulting (which is the Create Fund Manager), said the Fund provides relatively low cost working capital by way of commercial loans or
overdrafts to the agricultural sector along three main business activities – inputs, outputs marketing and storage and processing.
“The Fund is designed to indirectly support smallholder farmers by lending to value chain businesses who: demonstrate strong, verifiable linkages to smallholder farmers; buy from, contract and sell to smallholder farmers. The Fund supports all
agricultural value chains except cotton and tobacco for now.” said Mr Makuwa. “The Create Fund, which has an initial capital of $12 million, currently works through three designated banks, FBC Bank, NMB and TN Bank. Facilities can have
tenors of three, six and twelve months depending on the activity being funded, and there is a provision for roll-over subject to performance. Interest is an all-in cost of 11,5% per annum, including drawdown fees and establishment fees. No loan will be declined solely on the basis of lack of fixed property collateral.”