Agro-financier AFC Holdings (AFC) has raised more than US$5 million through the productive use of its land portfolio, as it moves to strengthen its capital base and expand lending.
The group was allocated 10 000 hectares by the government in 2022 to support its operations, with an additional 30 000 hectares pledged.
Announcing its results for the year ended 31 December 2025, AFC chairman James Mutizwa said the institution was making steady progress in converting land into liquidity.
“The group has made significant progress in land monetisation, raising over US$5 million. Additionally, other properties are at an advanced stage of development, and the group anticipates these will unlock substantial liquidity in 2026,” he said.
Mutizwa added that further shareholder support was expected.
“The group anticipates further capital injections from the shareholder to strengthen the group’s capital base and enhance resilience to potential shocks in the delivery of its mandate.”
During the period under review, AFC received US$20 million in working capital support from its shareholder, Mutapa Investment Fund, improving liquidity and positioning the lender for growth.
Chief executive Francis Macheka said the institution’s asset base remained anchored on government-allocated land.
“Our capital base is underpinned by land assets allocated by the Government of Zimbabwe. The group is advancing initiatives to monetise these assets and unlock their full economic value through productive use,” he said.
The group also secured a US$5 million facility from the African Export-Import Bank, which supported interventions in mechanisation, irrigation and cereal production under various Government programmes.
Total funding deployed across these initiatives exceeded US$100 million, supplemented by lines of credit carried over from development partners in 2024.
AFC said the additional funding had strengthened its recovery, expanded its lending capacity and supported investment diversification, while improving overall performance.
The institution is also engaging development partners for fresh lines of credit, particularly targeting smallholder farmers and export-oriented production.
Financially, AFC reported a turnaround, posting a profit before tax of ZiG21,4 million compared to a loss of ZiG258,6 million incurred prior year, weighed down by exchange-related losses. Total comprehensive income stood at ZiG113,4 million, boosted by a revaluation surplus on property and equipment.
Earnings quality improved during the year, driven by stronger core operations. Net interest income rose 38 percent to ZiG276,8 million, supported by loan book growth and better asset yields. – TML