By Bernard Bwoni
The recently announced budgetary
statement was pro-poor and in a lot of ways focusing on enhancing and
facilitating the strategic agriculture sector and other key ZIMASSET clusters.
The Presidential Input Scheme aids and anchors the Food Security and Poverty
Alleviation Clusters of the economic blueprint. The hard fact is that Zimbabwe
is on the inevitable road towards recovery and the recent realignment and
reshuffling within the ruling party following Congress only confirms this.
Crucially the Presidential Inputs
Scheme is benefitting around 1.6 million households throughout the country for
the current agricultural season. This strategic scheme targets maize, small
grains and livestock which are important for the country’s food security and
national self-sufficiency. At the time of announcing the budget Minister
Chinamasa pointed out that so far a total of US$10.5 million had been raised
and the procurement and distribution of seeds is underway through the
Grain Marketing Board (GMB) Depots nationally. These are positive and proactive
initiatives on the part of the government to stimulate agricultural growth as
this ensures that seeds are readily and timely available at the start of the
planting season. It is from an agricultural base that the country’s economic
revival will stem from. The government has been innovative in supplying the
input supplies through a mixture of the issuing of treasury bills to settle
previous obligations amounting to US$30.9 million.
The last agricultural season of
2013/14 has been a resounding success with impressive delivery of grain to the GMB
and this was premised on the backdrop of an excellent rainy season and the
Presidential Input Scheme. Over 220,348 metric tonnes of maize was delivered to
the GMB compared 81,190 metric tonnes and 33,273 metric tonnes in the two
previous season respectively. The 220,348 metric tonnes is enough for national
self-sufficiency and stockpiling. It is important to note that over the past
six agricultural seasons Zimbabwe has been rated first in the AU countries for
meeting cereal production demands.
One of the key stumbling blocks
to the revival of the agriculture sector has been access to financial resources
in particular the small-scale and newly resettled farmers. The government has
been proactive and made good progressive in terms of facilitating resources
mobilisation from the country’s financial institutions. The Prescribed Asset
Status (PAS), the Liquid Asset Status, tax exemptions and government guarantees
are some of the key strategies the government has been pursuing to ensure that
the agricultural financing institutions more willing to fund the sector. The banking sector has so far this
agricultural season mobilised in excess of US$1.093 billion for farmers to
access working capital under a number of available credit schemes and so far
support for contract farming arrangements for the 2014/15 season are in place
through the Agricultural Market Authority to the tune of US$21.4 million. This is
covering 12,075 hectares for maize, 6,224 hectares for soya beans and 31,680 hectares
for cotton.
In the past farmers have
struggled paying back loans and this has made the financial institutions very
sceptical and reluctant to provide new lending to farmers. This has in turn has
had a negative impact on agriculture and productivity. The government is now
ensuring certainty of repayment through an efficient Stop Order System which
help address the challenges relating to farmers avoiding paying through side
marketing. Robust recovery systems which guarantee financial institutions that
farmers will repay have now been put into place. The Bankers Association of
Zimbabwe (BAZ) is currently developing and making arrangements for the
re-establishment of the Stop Order System with the support of the Reserve Bank
of Zimbabwe, The Ministry of Finance and Economic Development and The Ministry
of Agriculture, Mechanisation and Irrigation Development. The government has
been encouraging Contract farming arrangements between farmers and cotton
merchants through the continuation of the Buying Quota System for contracts
introduced in the 2013/14 season to limit side marketing of contracted cotton
which will also support loan recovery and the sustainability of bank funding
for cotton production. These are all positive strategies to rebuild trust with
the lending institutions.
The government has been keen to
induce productivity in agriculture via joint ventures with interested parties.
The government of Zimbabwe owns expansive estates of good agricultural land
nationally through the Agriculture and Rural Authority (ARDA) and the Cold
Storage Commission (CSC) which currently lies under-utilised and as such has
been inviting investors willing to partner ARDA and CSC in joint ventures.
Under the arrangements the potential investors will provide capital whilst ARDA
and CSC will provide the land and infrastructure for the estates. All this is
crucial to the successful implementation of ZIMASSET.
A resurgent agriculture sector provides
the platform for the country’s economic transformation and revival following
years of decline. There is need to address some of the policy and
administrative challenges that have held back previous government initiatives.
In his address at the recently concluded ruling party 6th National Congress
President Mugabe made it clear that those implicated in corrupt practices will
be expelled from government and be dealt with according to the laws of the
land. It is action and actual follow up which will ensure that the degeneracy
is nipped in the bud. It is now after Congress and must that focus is
redirected back towards what really matters to the expectant electorate, that
is the economy and service delivery. The time for excuses has been and gone.
bernardbwoni.blogspot.com
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