Source: IDBZ earmarks US$50m for horticultural climate-proofing – herald
Nqobile Bhebhe
Zimpapers Business Hub
THE Infrastructure Development Bank of Zimbabwe is setting up a US$50 million horticulture investment fund to climate-proof one of Zimbabwe’s major sources of export earnings.
The initiative comes as horticulture has become a vital component of Zimbabwe’s export earnings, significantly contributing to foreign currency inflows through in-demand products like citrus, blueberries, avocados, and flowers in European, Asian and regional markets.
IDBZ said the facility will strengthen Zimbabwe’s high-value export chains against rising threats from climate change, which has increasingly disrupted production cycles, impacted yields and increased vulnerability among producers.
“In terms of climate finance initiatives, the bank is developing the US$50 million Horticulture Investment Fund for Enhanced Climate Resilience (HIFECR),” IDBZ acting chief executive Mr Willing Zvirevo said in a statement accompanying the bank’s financial results for the year to December 31, 2025.
“The facility, which will blend concessional resources from the Green Climate Fund with co-financing from other Development Partners, public sources and the private sector, seeks to strengthen resilience in high-value export chains including coffee, citrus, avocado, berries, and fresh produce.”
The HIFECR initiative aims to stabilise and grow key horticulture value chains, which are among Zimbabwe’s fastest-growing export segments, driven by rising global demand for fresh and processed produce.
In recent years, horticulture exports have become a reliable source of foreign currency, complementing traditional mineral exports like gold and platinum, while providing quicker turnaround times and higher value per hectare than staple crops.
Additionally, the sector is crucial for job creation, especially in rural areas, and promotes value addition through agro-processing, packaging, and logistics.
“The project targets over 150 000 direct beneficiaries, with strong participation targets for women and youth,” said Mr Zvirevo.
The initiative not only focuses on infrastructure and crop security but also aims to enhance inclusivity and build resilience among both smallholder and commercial farmers.
He said that the bank received US$6.8 million in fresh capital during the year, US$4.7 million from the Government of Zimbabwe and US$2.1 million from the Reserve Bank, which provided crucial operational support.
“As part of continued support in strengthening the Bank’s balance sheet, the Government allocated another ZiG 150 million towards the Bank capitalisation under the 2026 National Budget.
“This was further bolstered by issuance of capitalisation Treasury Bills for US$50 million in February 2026.”
Mr Zvirevo noted that in 2025, the bank operated in an improved macro-economic environment characterised by declining inflation and a stable exchange rate.
“While the tight fiscal and monetary policy measures had a stabilisation effect on the macroeconomic environment, the prevailing tight liquidity conditions and high interest rates created a challenging landscape for the Bank’s resource mobilisation efforts.
“As a result, the bank’s loan book growth was curtailed and project completion was delayed. Nonetheless, the bank registered notable progress in executing its mandate.”
In 2025, US$15.83 million was raised to support project implementation.
In 2025, the bank made notable progress in advancing projects in the water and sanitation, housing, irrigation, transport, and energy sectors, reinforcing its commitment to bridging infrastructure gaps and driving Zimbabwe’s socio-economic transformation.
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