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Liquidity crunch causes delay in tractor owners payments

25 Nov 2025

The delay in paying tractor owners for the 2024/2025 ploughing season was due to liquidity challenges when the season started and other factors among them, late registration of tractor owners with the Crop Management System (CMS), a system used for all transactions concerning the programmme, Know Your Customer (KYC) compliance, and validation of area planted. 

The acting Minister of Land and Agriculture, Dr Edwin Dikoloti, told Parliament on Friday during Minister Question time session that it was also observed that some tractor owners undertook activities before registering, which also caused the delays. 

However, he said the ministry and the National Development Bank (NDB) were rectifying the errors to enable reconciliation and payment to the few remaining suppliers. 

Dr Dikoloti said that in curbing future delays in tractor owners’ payments, the ministry had registered 4 800 tractor owners and 2 571 animal draft power providers in the Crop Management System. 

He said the utilisation of the system would ensure timely payments as the tractor owners would transact as soon as the activity was done and verified. 

The minister noted that continuous engagement with the tractor association had also been undertaken, as well as the capacitation of other individual tractor owners, to ensure timely compliance if the owner intended to participate in the subsidy programme. 

Also, he said the subsidy for ploughing/planting in the past years had been provided through the ISPAAD programme, which transitioned into the Temo Letlotlo, noting that the government had spent a considerable amount of money on tillage operations, while the output did not match the input. 

There has been fluctuation in area planted and production figures, mainly due to the effects of climate variabilities, Dr Dikoloti said, adding that the country experienced drought for two consecutive seasons. 

In addition, he said the amount used did not match the output due to the misuse of the programmes, as some beneficiaries registered but did not actually do the planting, yet there were transactions, which aggravated the costs. 

He said that in the 2024/25 season, P430.2 million was spent on 195 037.95 hectares, which produced 162 505.5 tonnes while in the 2023/24 season, 137 658 hectares cultivated produced 83 503.99 tonnes at a cost of P354.9 million. 

In the 2022/23 season, 272 787.89 hectares were ploughed and produced 97 779.12 tonnes at a cost of P356 million, while in the 2021/22 season, 326 244.11 hectares produced 206 572.05 tonnes at a cost of P258.6 million, and in the 2020/21 season, 341 828.05 hectares produced 195 168.03 tonnes at a cost of P267 million. 

Dr Dikoloti also said the ministry currently did not have a well-coordinated and informative agricultural mechanisation strategy, however, there were programme components within the input subsidy programme that dealt with issues of mechanisation. 

Dr Dikoloti said farmers had been subsidised to acquire tractors and agricultural implements to enhance draft power service to farmers, noting that the ministry, through the extension outreach programmes, provided technical and professional services to farmers and tractor owners to improve arable productivity. 

He said there were mechanisation officers across the districts available for the provision of support to the farming community. 

“It is worth indicating that agricultural mechanisation is crucial to increase agricultural production, productivity, and efficiency, reduce labor requirements, and contribute to value chains and food systems development, and ultimately, food security,” Dr Dikoloti said. 

Therefore, he said there was a need to develop a comprehensive mechanisation strategy where all key stakeholders, such as suppliers, draft power providers, research and development institutions, farmers, NGOs, government, and academia, must be actively involved. 

Shoshong MP, Mr Moneedi Bagaisamang had asked the minister if he was aware of delays in paying tractor owners following the 2024/2025 ploughing season, strategies put in place to ensure the same did not recur in the future, to avoid farmers incurring unnecessary costs, and to state how much money was used on the initiative in the last five years. 

He also wanted the minister to state how much output was realised on the initiative and if the ministry had a mechanisation strategy, given that the next ploughing season was approaching, and when farmers should expect its rollout. ENDS

Source : BOPA

Author : Pako Lebanna

Location : Gaborone

Event : Parliament

Date : 25 Nov 2025