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Zimbabwe’s focus on wheat set to yield biggest-ever harvest

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BY FARAI MUTSAKA

Zimbabwe says it is on the brink of its biggest wheat harvest in history, thanks in large part to efforts to overcome food supply problems caused by the war in Ukraine.

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But bush fires and impending rains are threatening crops yet to be harvested.

Like other African countries, Zimbabwe has for decades relied on imports to offset low local production.

After Russia’s invasion of Ukraine resulted in global shortages and price hikes, the country wanted to ensure “self-sufficiency at all costs,”  Agriculture deputy minister Vangelis Haritatos told The Associated Press this week.

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The country expects to harvest 380,000 tons of wheat, “which is 20,000 more than we require as a country,” Haritatos said. That is up from about 300,000 tons produced last year.

“We are most likely to get the highest tonnage since 1962, when wheat was first introduced to Zimbabwe.

“A lot of countries are facing shortages, but the opposite is happening in Zimbabwe.”

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While other hunger-stricken African countries are struggling with reduced wheat imports due to the war in Ukraine, Zimbabwe is looking at using its anticipated surplus of the grain to build “a small strategic reserve” for the first time in its history, Agriculture minister Anxious Masuka told journalists earlier this month.

This would cushion Zimbabwe against future shocks.

Masuka said Zimbabwe plans to bump up wheat production to about 420,000 tons next season, giving the country room to keep building its strategic reserve and become an exporter of the grain.

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Wheat is Zimbabwe’s most important strategic crop after corn.

African countries — which imported 44 percent of their wheat from Russia and Ukraine between 2018 and 2020, according to U.N. figures — were hit hard by the global shortages and price hikes of grains as a result of the war.

The African Development Bank has reported a 45 percent increase in wheat prices on the continent.

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African nations were at the center of Western efforts to reopen Ukraine’s ports as the United States and allies accused Russia of starving the world  by denying exports from Ukraine, a key global grain exporter. African leaders also visited Russia to meet with Putin over the issue.

Zimbabwean President Emmerson Mnangagwa in April described the war in Ukraine as a “wake-up call” for countries to grow their own food.

The answer in Zimbabwe has been to empower local farmers, said Haritatos, the deputy agriculture minister.

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That included roping in hundreds of small-scale, rural farmers to start growing a crop that was traditionally reserved for large-scale commercial farmers, improving water supply infrastructure and distributing fertilisers to small-scale farmers as well as increasing private-sector participation.

The crop was introduced for the first time to areas and farmers who had never grown wheat before.

Winter corn production has given way to wheat in many areas, with Zimbabwe banking on corn reserves to meet demand for the staple food. Land used for growing wheat increased from 66,000 hectares (163,089 acres) in 2021 to 75,000 hectares this year and will grow to 100,000 hectares next season.

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“A lot of countries discount small-scale farmers because they are so small that individually they cannot effect much change,” Haritatos said.

“But we organized them into clusters and convinced them that it was possible. The quality of most of their crops is premium.”

He said the war in Ukraine had made Zimbabwe “realize that we shouldn’t rely on other countries for food that we can grow on our own.”

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However, Zimbabwe’s wheat is predominantly soft, and there is a need to blend it with imported hard wheat varieties to produce quality flour for bread, according to the Grain Millers Association of Zimbabwe.

But the government has ruled out imports amid the surplus, saying a special permit would be needed.

The wheat harvest runs from October to December. However, both farmers and the government are concerned by the threat of raging bush fires and imminent rains.

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They say the fires are more devastating than in previous years as climate change contributes to an extended dry season.

“Farmers are increasingly getting worried about the time factor. It looks like the rains will be upon us soon. Wheat should be out of the fields,” said Paul Zakariya,

director of the Zimbabwe Farmers Union, which represents small-scale growers.

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Officials said bush fires destroyed wheat worth nearly US$1 million in a single week in mid-October.

Zimbabwe is amid the “fire season,” characterised by severe heat and strong windy and arid conditions that precede the rainy season.

The government says it has deployed more combine harvesters to help farmers speed up the harvest and is carrying out fire prevention awareness programs.

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The country’s environmental management agency has described bush fires as “one of the greatest environmental challenges of our time. – AP

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National

Another Zimbabwe gold coin sale registers little for most

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BY GAMUCHIRAI MASIYIWA

With the price of gold up globally, the Reserve Bank of

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Zimbabwe in April put the gold coins it stopped minting a year earlier back on the

market.

But interested investors had to act fast.

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By mid-June, the sale of coins from its accumulated stock was abruptly concluded

and another chapter of the currency chaos that has characterized the nation’s

economy for decades was in the books. This time, at least, economists say the

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experiment had little effect.

The short-lived sale is just the latest example in a long line of inconsistent policies,

says Ithiel Mavesere, a lecturer in the economics and development department at theUniversity of Zimbabwe. Storing value in a gold coin is not a viable option for the

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majority of the population, he adds.

“Ideally, what they should have done is come up with low-value coins, with

denominations as low as equivalent to US$20 for the majority of the population to

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afford,

” Mavesere says.

However, Reserve Bank of Zimbabwe Governor John Mushayavanhu says in a written

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response to Global Press Journal that the gold coins were effective as an alternative

investment instrument and there was huge demand from both corporations and

individuals. According to RBZ data, corporations bought about 79% of the gold coins

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and individuals bought about 21%.

About US$12 million’s worth sold

The lowest denomination of the coins represents a tenth of an ounce of gold,

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equivalent to 9,299.13 in Zimbabwe gold, or ZiG, the national currency, or about

US$347. The highest denomination of the coins represents one ounce of gold,

equivalent to ZiG 92,991.34 or about US$3,470.

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In all, the central bank has sold gold coins worth ZiG 343 million, or about US$12.8

million, according to Mushayavanhu, who says the recent sale happened after the

bank noted increased demand following the rise in international gold prices.

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“In this context, the Reserve Bank re-issued an accumulated parcel of gold coins from

a combination of gold coins which had been bought back from the market through

redemptions and some coins which were still being held at the Reserve Bank from

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the previously minted stock,

” the governor wrote.

A statement from the bank in mid-June announcing the halt to the sale indicated it

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had been intended to clear the stock of gold coins it had and those that had been

cashed in by their holders.

Mushayavanhu says the bank stopped minting gold coins in April 2024 to prioritize its

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gold reserve which, along with foreign currency reserves, backs the Zimbabwe gold

currency.

He says foreign reserves increased from US$270 million in April 2024 to US$731 million

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as of the end of June.

The central bank first introduced the Mosi-oa-Tunya gold coins — which share an

indigenous name for Victoria Falls — in 2022 at a time when the country was

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experiencing currency instability with high inflation and continued devaluation of

what was then the national currency, the Zimbabwe dollar.

The coins aimed to reduce dependency on the US dollar and help stabilize the

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economy. The coins helped mop up excess cash in local currency that was circulatingin the market. Coupled with other monetary measures in 2022, the monthly inflation

rate dropped from about 31% in June to about 12% in August that year.

However, the exchange rate of the Zimbabwe dollar drastically fell against the US

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dollar and the government replaced it with the new Zimbabwe gold currency in April

2024. Since its introduction, the currency’s value has been cut in half.

A ‘drop in the ocean’

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Lyle Begbie, an economist with Oxford Economics Africa, believes the sale of the gold

coins when they were introduced in 2022 was more of a revenue-generating scheme,

as it happened at a time when inflation was very high.

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He says it makes sense that the recent sale of gold coins was influenced by the

increase in gold prices on the global market. But he adds that the value of gold coins

was too little to have an impact on the economy. Begbie says the US$12.8 million in

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coins the central bank reported selling is less than 1% of Zimbabwe’s gross domestic

product — which the World Bank estimates at US$44 billion — a “drop in the ocean”

when it comes to the country’s macroeconomic picture.

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Prosper Chitambara, an economist based in Harare, agrees the impact of the recent

sale was minimal. He says gold coins don’t have a significant impact on currency

stability in an economy like Zimbabwe’s, which is highly informal and also highly

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dollarized — meaning it’s heavily reliant on the US dollar as a currency.

“Most economic agents in our economy prefer to transact using their US dollars

because it’s a highly tradable and highly liquid asset. … So there’s a huge confidence

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and trust in the USD than in the gold coins or even in the Zimbabwe gold,

Chitambara says.

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Samuel Wadzai, the executive director of Vendors Initiative for Social and Economic

Transformation, an organization in Harare that advocates for the informal business

sector, says there have been a few instances where members have tried to use gold

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coins for everyday transactions, but it hasn’t been widespread.

“Most traders still prefer cash due to the challenges of acceptance and the limited

understanding of gold coins in everyday trade,

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” he says.

Isheanesu Kwenda, 31, a Harare street vendor with a sociology degree, says the recent

sale of gold coins didn’t offer any benefit for him. Like many Zimbabweans, he has

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heard about the gold coins, but has never seen or opted to buy them. The vendor is

part of Zimbabwe’s informal economy, which sustains over 80% of Zimbabwe’s

population and contributes nearly 72% to the country’s GDP.

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“Street economics informs that you should not attempt to get something you are not

sure of or do not understand. … I prefer to sell my goods and keep my money in US

dollars because it holds value, or I can keep my money in stock,

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” Kwenda says of theclothing he sells.

Last year, Kwenda lost more than half his earnings after Zimbabwe gold was

introduced. After being paid the equivalent of US$1,000 in Zimbabwe dollars, he only

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managed to salvage US$360 and lost the rest in exchange rate losses.

For Kwenda, restoring confidence is simple: The government must stick to a plan,

without making sudden U-turns

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This story was originally published by Global Press Journal

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Hwange

Silibaziso Mlotshwa to be installed as new Chief Mvuthu

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BY NOKUTHABA DLAMINI 

A historic installation ceremony is set to take place on Friday, as Silibaziso Mlotshwa, daughter of the late Chief Mvuthu, Nyangayezizwe Mlotshwa, is scheduled to take over as the new chief.

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The installation comes after a prolonged dispute over the chieftaincy, which had been held up since Chief Mvuthu’s passing in 2014.

According to Paulos Ntini, the Prosecutor General at the Mvuthu’s monarchy, preparations for the ceremony are underway. “Preparations are going on well. So far, the road has been graveled to the homestead, and on Thursday, all the village heads, including myself, will be collecting gifts from the villagers for the ceremony,” he said.

The late Chief Mvuthu’s family had initially nominated his brother, Sanders Mlotshwa, as the successor in December 2014. However, Silibaziso challenged this decision in court, arguing that she was the rightful heir to the throne.

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The dispute had resulted in Headman Bishop Matata Sibanda acting as the chief until now.

Chief Mvuthu was a respected traditional leader in Matabeleland North and chaired the Hwange Community Share Ownership Scheme. He was also a retiree of Hwange Colliery Company, having left his job in 2008 to take over the chieftaincy.

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Hwange

Hwange Colliery Company to resume alcohol monitoring program

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BY STAFF REPORTER 

Hwange Colliery Company Limited has announced that its Alcohol Monitoring Program will officially resume on Wednesday, across all areas.

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According to a memo , the program is a critical part of the company’s commitment to safety, health, and productivity. It is implemented in line with the company’s workplace policies and legal obligations.

The memo stated that ensuring a substance-free work environment, especially in high-risk areas, is essential to the wellbeing of all employees and the overall performance of the organization.

All employees are expected to comply fully with the requirements of the program. Testing will be conducted randomly and routinely as stipulated in the Alcohol & Drug Monitoring Procedure (SHEQP 2.09).

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The memo also warned that appropriate disciplinary procedures will apply in cases of non-compliance or policy violation.

 

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