An assessment was done to establish the impact of the ZADT Fund on the performance of funded agribusinesses. The assessment focussed on the extent to which the Fund contributed to changes in three main indicators namely annual turnover, capacity utilization and employment levels. The changes in the parameters were measured between the period when the facility was disbursed and when it matured. The findings are presented in the Figure below.
Summarized findings
Agribusinesses with facilities maturing in 2018 had an overall turnover growth of 41%. There were no sampled agribusinesses with an average growth in turnover of less than 10%. All of these companies admitted that the ZADT Fund contributed to more than 50% of total funds supporting their operations during the year. The ZADT Fund therefore contributed to the growth in the turnover of these businesses. The Fund was also able to contribute positively to the productive capacity of borrowing agribusinesses. The overall contribution of the Fund to increased capacity utilization was 36%. There were two companies who recorded 100% growth in capacity utilization indicating full impact of the Fund on the businesses.
In line with increased capacity utilization, agribusinesses recorded a 43% overall increase in employment levels. The boost in capacity utilization increased their ability to produce more hence the need for additional human resources. The ZADT Fund therefore contributed to employment creation specifically to the funded businesses and to the country as a whole.
