Minister of Finance, Neal Rijkenberg, states that the amount will help cushion maize farmers because of the escalating prices in fertilizer. The money will be channeled towards both Eswatini Nation Land and Commercial farmers
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By Ntokozo Nkambule
Good news for farmers and those in the agricultural sector as the government has confirmed that the African Development Bank (AfDB) has approved a US$10 million loan (E165 million).
This was disclosed by the Minister of Finance, Neal Rijkenberg during a media briefing on the current cost of living in the country. The Minister said the amount would be channeled towards the agricultural sector, particularly fertilizer. The money will be channeled towards both Eswatini Nation Land and Commercial farmers.
Furthermore, Rijkenberg said the amount will be added to the input subsidy scheme. “Normally, we allocate E40 million towards the input subsidy scheme, and what we will do is add the E165 million loan amount to that existing E40 million. We believe this will help cushion farmers regarding the fertilizer price”
He said despite the subsidy, the cost of planting maize will still go up, but this loan will help cushion farmers and ensure they continue planting maize. Rijkenberg added that this will also translate to the maize price not skyrocketing next year, so the average will also benefit from this loan.
Rijkenberg further noted that even though the loan has been negotiated successfully with AfDB, it must still go to parliament for endorsement. “We must clarify that as much as we have got approval from AfDB, we still need to have the loan endorsed by parliament. However, we have seen it fit to start announcing it so that farmers can start planning ahead. As it stands, we have farmers that have contemplated giving up as the fertilizer price is so high” he noted.
He added that the loan from AfDB is only for a one-year period, and has only been necessitated by the exorbitant fertilizer prices due to the Russia-Ukraine war. Rijkenberg did however state that if the war in Russia & Ukraine persists for over a year then the government would re-assess her position, regarding a possible extension.
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