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Charity Ruzvidzo Business Reporter
FARMERS have applauded the restoration of the stop order system saying the programme will go a long way in ensuring increased production. Presenting the 2015 budget recently, Finance and Economic Development Minister Patrick Chinamasa said the Bankers Association of Zimbabwe (BAZ) was developing arrangements to facilitate the restoration of the stop order system. “The participation of the banking sector in funding agriculture should be buttressed by a robust recovery system which guarantees that beneficiary farmers pay back.

“In this regard, BAZ is developing arrangements for the re-establishment of the stop order system with the support of the Reserve Bank, Ministry of Finance and Economic Development and Ministry of Agriculture, Mechanisation and Irrigation Development,” he said.

The minister said an efficient stop order system helps overcome challenges related to farmers avoiding making their repayments through side marketing.

The stop order system, which was suspended to farmers who grow other cash crops, has only been available to tobacco farmers who have managed to make good use of the facility.

Zimbabwe Commercial Farmers’ Union (ZCFU) Matabeleland North provincial chair Winston Babbage encouraged farmers to avoid side marketing.

“The restoration of the stop order system is a noble idea as it provides capital for farmers. However, farmers should avoid side marketing, the prices offered by GMB for grain are favourable,” he said.

Zimbabwe Farmers’ Union chief economist Prince Kuipa said farmers were struggling to get funding.

“Stop Order System is about a bank or any institution financing or capacitating a farmer. The system will allow farmers to sell their produce to GMB and as soon as the board pays the farmer, the bank takes the amount owed to them from the farmer’s account,” he said.

Kuipa said the system allows farmers to produce to the maximum as they have funding.

He said the system also gives farmers a good credit reference.

“If a farmer is given funds through the stop order system and pays back, they create a good credit reference. This means in future, when in need of a loan a farmer can always refer to the system,” said Kuipa.