Valley Seeds (Private) Limited’s US$20 million loan facility has come under close examination, prompting political analyst Jealousy Mawarire to raise alarm over possible irregularities and corruption within the Ministry of Finance.
EcoBank Zimbabwe granted EcoBank Seeds with an EcoBank Guarantee loan backed by government guarantees in 2025, raising questions as to its legality, transparency and strategic rationale.
Official documents issued March 24, 2025, revealed that Valley Seeds will pay back monthly repayments totalling US$5 Million per annum up until their repayment obligations of 60 Million total have been fulfilled over 12 months by Finance, Economic Development & Investment Promotion–equating to approximately US$60 Million over one year’s time period.
EcoBank issued a US$20 million loan and stood to receive back US$60 million, suggesting an astounding profit margin of 40 million and prompting Mawarire to question who was reaping those profits.
Mawarire maintained that all government loans and guarantees must be processed according to the Public Debt Management Act with full disclosure to Parliament, so this transaction was highly irregular as it bypassed legal frameworks by guaranteeing private companies without Parliament oversight. “[This transaction] sidesteps legal frameworks,” according to Mawarire.
George Guvamatanga, Secretary for Finance, issued a letter which bound himself as the co-principal debtor on this facility and authorized EcoBank to directly debit his account if payments become late or the agreement changes, prompting concerns over transparency and accountability.
Critics have also raised issues over why Guvamatanga, as an official government employee, is the sole signatory to this agreement, with future permanent secretaries not given similar authority to uphold it. “This raises red flags; if everything is above board, why must the agreement only be available through one individual?” Mawarire asked.
This letter also confirms the Ministry’s recognition of legacy debt balances at Valley Seeds totalling US$191 million, raising further inquiries on its strategic significance and the need to protect itself from financial risk.
“This arrangement smells of an illegal scheme to siphon funds away from public coffers into private pockets,” Mawarire claimed, calling for full transparency from both sides in this deal. Parliament should investigate it immediately.
As controversy over this project escalates, there have been increasing calls on the Ministry of Finance to publicly explain their rationale behind supporting private entities with taxpayer dollars and provide clarity as to its legal basis.
At the time of publication, efforts to obtain commentary from the Ministry of Finance had proven inconclusive; neither EcoBank Zimbabwe nor Ecobank Australia issued public responses in this matter.
The unfolding scandal comes amid rising concerns regarding opaque financial transactions within government, with observers noting how such practices could further damage public trust and institutional credibility.
