Professional Documents
Culture Documents
2012
Preface
This study was commissioned in support of an initiative coordinated by the Agence Franaise de Dveloppement
and the Development Bank of Southern Africa. The objective of the study is to identify the development needs
of Zimbabwes economy in general and the agricultural sector in particular. The associated economic and
agricultural policies, their coordination and functioning are also discussed as a basis for national dialogue on
investment in the countrys agricultural sector.
A grounded understanding of such elements of Zimbabwes economy will assist in encouraging the design of
investment interventions conducive to national development. These should take cognisance of both
the constraints facing agricultural producers, particularly smallholder and associated actors, and government
objectives for food security and wider economic development.
This report includes inputs of a consultation workshop that was held in Harare on 21 October 2011 for
validation of the report before its finalisation and inclusion in a review process.
Acknowledgements
The compilation of this report would not have been possible without of the important contribution of various
stakeholders that participated in a survey in the information-gathering phase. Their participation in the study
and their inputs are much appreciated.
Published by
Development Planning Division
Development Bank of Southern Africa
PO Box 1234
Halfway House 1685
South Africa
Telephone: +27 11 313 3911
Telefax: +27 11 313 3086
Email: dpdpublications@dbsa.org
Legal Disclaimer
The findings, interpretations and conclusions expressed in this report are those of the authors. They do not
necessarily reflect the views or policies of the Development Bank of Southern Africa. Nor do they indicate that
the DBSA endorses the views of the authors.
In quoting from this document, users are advised to attribute the source of this information to the author(s)
concerned and not to the DBSA.
In the preparation of this document, every effort was made to offer the most current, correct and clearly
expressed information possible. Nonetheless, inadvertent errors can occur, and applicable laws, rules and
regulations may change. The Development Bank of Southern Africa makes its documentation available without
warranty of any kind and accepts no responsibility for its accuracy or for any consequences of its use.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Contents
Executive summary
8
10
Chapter 1: Introduction
15
1.1
11
15
16
17
18
18
19
2.1 Introduction
19
19
20
23
26
27
32
33
40
44
46
50
51
55
58
Chapter 3: T
he political economy of the agricultural sector
and post-crisis reconstruction
61
3.1 Context
3.1.1 Lack of statistical information
3.1.2 Fragile political stability
64
64
65
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3.1.3
3.1.4
3.1.5
3.1.6
67
69
70
71
71
71
73
75
75
77
78
3.3 Assistance
3.3.1 Zimbabwes short-term, year-on-year approach
3.3.2 A country and target-specific approach
3.3.3 The lack of donor-recipient consensus
3.3.4 Multiple donors, partially aligned
3.3.5 Funding certainly not matched by recipient
3.3.6 Concluding remarks on foreign assistance
78
78
79
79
80
82
82
83
83
84
85
86
87
88
89
89
89
93
96
101
101
102
103
106
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107
112
112
4.3
Chapter 5: Investment
priorities for agricultural sector development
and zimbabwes post-crisis reconstruction
113
115
115
117
120
120
126
128
130
140
143
References
146
Annexure 1
153
153
Annexure 2
154
154
Annexure 3
161
161
Annexure 4
164
164
117
118
118
132
134
136
137
139
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Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Executive summary
The overall objective of this report is to identify priorities for public and private sector
investment in Zimbabwe, for national and international partners, which target agricultural
recovery and food security. In order to create a framework for the development of a
strategic plan for investment in Zimbabwe, the specific objectives of the assignment are to:
(i) Describe in detail the state of agriculture and food security in Zimbabwe;
(ii) Detail Zimbabwes political economy and elements of the countrys post-conflict
or post-crisis period to create a better understanding of its opportunities for
and constraints to reconstruction;
(iii) Identify, describe and critically review all programmes and projects currently
implemented in Zimbabwe; and
(iv) Based on a critical review comparing the specific post-crisis reconstruction needs
with the projects and programmes currently being implemented, identify
investment priorities for agriculture and food security contextualised within
a broader economic setting.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Inadequate training in production and crop management, stemming from poor
extension services, and, therefore, a limited transfer of technology from research.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 10
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 11
generally recognised and supported, and effectively engages all stakeholders in a broad
framework of reforms. According to the Post-Crisis Reconstruction Model, there is a need
for governance restructuring; an engagement in agricultural, and overall, policy reform;
a rethink of assistance strategies; and the establishment of a stimulating economic
environment. These conditions are not exclusive, but are rather complementary and
strongly related.
The need for governance restructuring: Although democracy is neither a necessary nor
a sufficient condition for a successful recovery, there is a need for effective governance.
This implies the effective implementation of efficient, sustainable and accepted
programmes. The ability of a central government to implement inclusive policies
successfully forms a solid foundation on which recovery can be attained. Two major
aspects related to governance are, therefore, stressed: effectiveness and inclusivity.
The necessary development of Zimbabwes integrated agricultural and broader economic
policy framework: First, there is an absolute need for the country to engage in strategic
policy definition. Second, this should be done on a sectoral basis, particularly in
agriculture, but should be integrated with complementary development strategies for
industrial development, manufacturing, and the like. Third, in alignment with the Paris
Declaration, these policies should reflect a country-owned strategy.
Rethinking assistance to Zimbabwes agricultural sector and reconstruction:
The agricultural sector has to move away from a reactive food aid and emergency
relief approach towards a more proactive production and development approach.
Establishment of a stimulating economic environment: A major condition for this is
the revitalisation of the private sector, directly in agriculture, but also in downstream
and upstream sectors. As such revitalisation is to be supported by substantial domestic
and foreign investment in the agricultural sector, private sector engagement should
be promoted through a stimulating environment. Although the private sector will play
an important role, so too must the government and the donor community, in order to
improve the level and distribution of returns on agricultural investments.
The mobilisation and investment of financial resources in agriculture need the requisite
factors of production and exchange. The necessary conditions for any effective sectoral
recovery strategy (as with any other economic activity) would include: the rapid
reorientation of all farming efforts to respond to available markets; a gradual increase
in efficiency in production at all scales of operation; the availability and adequate
quality of inputs and services; affordable financial arrangements for working capital and
seasonal operations, as well as investment in productive assets; and positive expectations
among farmers, entrepreneurs and all others operating in value chains. Attaining these
fundamental groundwork goals will require a concerted investment of government
resources in the agricultural sector. Proposed potential areas of investment are shown in
the figure below.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Category
Public
Nature of investment
Policy reform
Agricultural and land policy
Interlinkages with broader economic policies
Notes
Long-term
investments
Private
sector
Immediate
investments
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Chapter 1
Introduction
1.1 The context of the study
The economic performance of Zimbabwe rests mainly on agriculture, mining and the
manufacturing industry, with agriculture contributing about 20% of gross domestic
product (GDP). Even though approximately 7.6million people (just under 75% of the total
population of 11 million) live in rural areas and depend mainly on agriculture, Zimbabwe
distinguished itself from the traditionally agriculture-based countries and is characterised
as a transitional economy throughout the 1970s and 1980s.1
However, Zimbabwes economy has struggled, agriculture more so than most other sectors,
to cope with the combined effects of the Fast Track Land Reform Programme (FTLRP),
hyperinflation, capital constraints and government controls on markets. Zimbabwes real
GDP declined by more than 71% between 2000 and 2008 (Robertson, 2011) with overall
agricultural production declining by 30% over the same period (Sukume & Guveya, 2009).
The governments land reform programme and the subsequent collapse of the agricultural
sector, which once provided 400 000 jobs and was the countrys main source of export
revenues and foreign exchange, are seen as the prime cause of the prolonged economic
crisis (Richardson, 2004). The deterioration of commercial agriculture and the sector in
general, which led to the country becoming a net importer of food by 2002, has resulted
in a substantial fall in formal employment opportunities, output, exports and secondary
demand generated by the modern or capitalised sector (World Bank & Government of
Zimbabwe, 2010). Once known as the breadbasket of the Southern African Development
Community (SADC) region, Zimbabwe is now characterised by chronic food insecurity
and is entirely dependent on international aid, particularly food aid (Makumbe, 2009).
After 2000, there have been several emergency-related programmes, from food relief
to input support schemes, funded by the government or bilateral or multilateral donors,
to improve food security and (mainly subsistence) agricultural output.
From 2009, Zimbabwe has achieved a relatively peaceful transition, which led to the
formation of a Government of National Unity (GNU). The GNU is a transitional arrangement
that brought the main political groupings together in government, with the objective of
spearheading the implementation of political, economic and constitutional reforms. Since
the formation of the GNU, Zimbabwes economy and agricultural sector have shown
resilience in the face of difficult market conditions. The combination of crises led to the
liberalisation of the agricultural market and the eventual adoption of foreign exchange as
part of a series of emergency policy measures to facilitate production and mitigate short1
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 15
term emergencies. Trade in international currencies has brought the rapid revitalisation of
both input and product markets. In 2009, Zimbabwes economy grew by 4.3%, the first
positive growth rate in a decade. Agriculture grew by an estimated 10% between 2008 and
2009 (RBZ, 2010). The prospects for continued rapid growth are now highly favourable.
Given the potential for political stability, the revitalisation of agriculture one of Zimbabwes
main sectors is necessary in order to shift from aid dependency towards a productionbased economy. Zimbabwe has an enviable resource endowment for agricultural
development, in terms of land and water resources, sunk investments, expertise, demand
for exports and even a conducive climate, notwithstanding the unpredictability of rainfall
patterns within seasons and between years (World Bank & Government of Zimbabwe,
2010). However, the agricultural sector is now characterised by an entirely new structure.
It is mainly composed of small-scale and newly resettled farmers, practicing their activities
on non-titled land. In contrast, a decade ago, the sector was composed of well-established,
large-scale commercial enterprises on private land. This raises new questions and requires
new instruments.
It is in this context that the Development Bank of Southern Africa (DBSA) and Agence
Franaise de Dveloppement (AFD), the French development agency, commissioned an
assessment of investment needs and priorities for supporting growth prospects and recovery
strategies for the agricultural sector in Zimbabwe. This agricultural sector assessment study
outlines opportunities for investment that will enable the country to achieve sustained
growth in production and trade, while improving food security. It discusses Zimbabwes
agricultural sector in a broader context of agricultural policies, overall politics and multisectoral linkages. The study is not exhaustive, but rather offers an overview of a number
of strategic investment opportunities. It generates pertinent summary information for
use by the main stakeholders, including international development partners, in guiding
the requisite levels of investment for the revival of agricultural and rural economic
activity. Investments at the appropriate points and levels will assist the recovery process.
Appropriate, incremental development investments may accelerate economic growth
and, therefore, enable the transition away from relief programmes by the government
and donors.
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Chapter 2
The state of agriculture and food security in Zimbabwe
2.1 Introduction
To create a better understanding of the situation in Zimbabwe and contextualise the
investment needs in its agricultural sector, this chapter gives a detailed description of the
evolution and current state of agriculture and food security in the country. The first section
presents a broad overview of Zimbabwes past agricultural policies, the transformation
of the countrys land structure, and the role of agriculture within the broader economic
development path. The concluding section details the challenges and the necessity of
revitalising the sector to shift from aid dependency towards a production-based economy.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 19
Table 2.1: Summary of land, agricultural and food security policies, 19802010
Period
1980
1990
1991
1998
2000
2008
2009+
Sector
Policy
Description
Land
Agriculture
Land
Compulsory land
acquisition
Agriculture
Liberalised policies
Food
security
No official policy
Land
FTLRP
Agriculture
Return of
regularisation
Food
security
No official policy
Agriculture
Mixed approach
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 20
people. A clause in the Lancaster House Agreement, however, prevented the government
from taking white farmers land in the first ten years of democratic rule, as it enforced a
willing buyer, willing seller policy.
In what can be seen as the first phase, land reforms from 1980 to 1992 redistributed
3.5 million ha of white-owned commercial farmland to 71000 indigenous families, mostly
from communal areas (see Table 2.2). This policy managed to establish a successful
resettlement programme as a double-barrelled strategy to boost food security and
equitable economic growth, while simultaneously reducing land pressure in overcrowded
communal lands (Rukuni, 2006).
Table 2.2: Land ownership pattern in Zimbabwe at independence in 1980
Number of
farmers
Million ha
Large-scale commercial
5 600
15.5
39.1
Small-scale commercial
1.4
3.5
Communal
16.4
41.4
6.0
15.2
State land
0.3
0.8
39.6
100.0
Sector
Total
% of total
After the ten-year moratorium expired, the willing buyer, willing seller principle (and the
payment of market prices for land) was dropped. A second phase of land reform began
in 1992, with the improved 1992 Land Acquisition Act allowing for the compulsory
acquisition of land. Compensation was based on a complex set of 15 principles to derive
a fair price for land. As such, 5 million ha of commercial farmland were to be acquired in
order to resettle a further 110 000 families. However, the pace of resettlement remained
below 2500 households per year between 1990 and 1993 (Mhishi, 1995). Despite the
passing of the new Land Act (to speed up the resettlement process) and constitutional
amendments (to prevent farmers from challenging fair compensation in the courts), the
new land acquisition drive acquired only 0.17 million ha for 4697 families (UNDP, 2002).
Phase 3 began in 2000. Following the rejection of the governments draft Constitution in
a referendum in February 2000 the ruling partys first popular defeat since coming to
power in 1980 action was taken to shore up support before the parliamentary elections
scheduled for June of the same year. Central to the strategy was a new, radicalised approach
to land reform to secure the rural vote ahead of the elections. In a process marked by
considerable coercion, violence and illegal activity, thousands of party-sponsored settlers
and veterans of the Liberation War invaded commercial farms, in what was to become the
Fast Track Land Reform Programme (FTLRP). Between 2000 and 2002 alone, the process
led by the war veterans had taken over 3074 farms, designating 7.3 million ha of land
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 21
for 114 830 households (Chaumba et al., 2003). The occupation of commercial farms was
later legitimised through amendments to the Constitution and legislation passed quickly
through Parliament by what had become an autocratic, dominant ruling party.
The FTLRP established two models of resettlement:
Model A1, in which each household would be allocated at least 3 ha (maximum 5 ha)
of arable land, but with shared grazing; and
Model A2 schemes based on small, medium and large-scale commercial farms with
99-year leases (Moyo, 2006).
Table 2.3: The new ownership structure
Farms/households
Farm class
Land tenure
Numbers
% of
total
1 100 000
16.400
15
72 000
3.700
51
141 656
5.700
40
1 313 656
98.0
25.800
75.6
20
8 000
1.400
175
Small A2
14 072
1.000
71
Subtotal
22 072
1.6
2.400
7.0
109
Mediumlarge A2
1 500
0.900
600
Black large-scale
commercial farms
1 440
0.900
625
White large-scale
commercial farms
1 377
1.200
871
Subtotal
4 317
0.3
3.000
9.0
695
657
1.000
1 522
64
0.041
641
Parastatal
153
0.600
3 922
Subtotal
874
0.1
1.641
4.8
1 878
1.300
3.8
1 340 919
34 141
100
Communal
Old resettlement
Smallholder
A1
Subtotal
Large-scale
commercial
Old small-scale
commercial farms
Company
Corporate
estates
Area
Church
Transitional
Unallocated
Total
Hectares
(million)
% of
total
Farm size
(ha)
Following the implementation of the FTLRP in June 2000, the agricultural industry now
comprises four major farming sectors, namely corporate (and transnational) estates, largescale commercial farms, small to medium-scale commercial farms, and the smallholder
sector (see Table 2.3). The smallholder sector consists of 1.1 million communal farmers and
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 22
72 000 farmers in the old resettlement areas, as well as 141 000 A1 farmers, for a total of
1.3 million farmers. The small to medium-scale commercial farm category, which before
the reforms consisted of the pre-independence black leasehold lands commonly referred to
as small-scale commercial farming areas, has been expanded from 8000 to 22 000 with the
introduction of small to medium-scale A2 farmers under leasehold tenure (Moyo, 2006).
While the old system was geared towards large-scale production, the transition to
smallholder production is yet to yield the anticipated results. Findings by Mujeyi (2010)
reveal that the land redistribution exercises have brought about significant shifts in
agricultural production and the functioning of commodity markets and, hence, changes
in Zimbabwes agrarian structure. A new era of modified markets and marketing channels
for agricultural services, inputs and outputs emerged out of the marketing and pricing
policies for agricultural commodities during the FTLRP era, leading to the proliferation of
new market regimes and market relationships.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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However, these documents were never adopted. The main shortcomings of these efforts
include limited stakeholder consultation, as the documents were never published.
Furthermore, the government appeared to be preoccupied with land reform and
resettlement programmes. Until these priority programmes reached completion, none of
the agricultural policies were implemented. In addition, although not a major factor, the
frequent portfolio changes of agricultural components into different ministries prevented
a comprehensive policy implementation effort.
In contrast, after 2000, economic and, in particular, political pressure saw the government
re-engaging directly with the agricultural sector. Shunned by donors after the controversial
land reform programme, the government began financing its own agricultural production.
The RBZ provided finance for sourcing inputs and mechanisation equipment through
various programmes. On the marketing side, Zimbabwes policy on grains shifted to
state-controlled markets, which were argued to achieve and ensure food self-sufficiency
while keeping prices low for consumers. The interventionist policies between 2000
and 2008 were defined by the reconstitution of the Grain Marketing Act through the
Grain Marketing (Controlled Products) Notice, which made private grain trade illegal,
leading to the suspension of the operations of the Zimbabwe Agricultural Commodity
Exchange. The Grain Marketing Notice Statutory Instrument (No. 235A of 16 July 2001)
represented a paradigm shift from the complete market liberalisation policy proposed in the
1990s market control dispensation. Similar controls were extended to the beef industry.
With respect to horticultural produce, beef and tobacco, exports may only be undertaken
with an export permit.
In 2007, with technical assistance from the Food and Agriculture Organization (FAO),
the then Ministry of Agriculture engaged in another attempt to write a policy document.
Land reform was nearing its end. After extensive work and consultation, the project was
completed in 2009, when the final draft the Nyanga Document was produced. It mainly
promoted:
(i) Agricultural growth and productivity, to ensure food security through
the generation of income and employment;
(ii) Improved provision, through public-private entities, of financial, marketing,
research and extension services; and
(iii) Strengthening of agricultural institutions to deliver advice and services
to farmers sustainably.
But again, mainly due to diverging political stances within the Ministry and the change of
Ministers, the policy was never adopted. As a result, Zimbabwe currently has no formal
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 25
The use of the United States dollar is official, but other currencies in particular South African rand are also in use.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 26
Restrictions to grain trading were reinforced through the gazetting of Statutory Instrument
387 in December 2001, which compelled farmers to deliver maize stock to the GMB
within 14 days of harvest. To complement this measure intended to promote food security,
the government suspended the standard grading system of grain that was set according
to the prescriptions of the GMB, and grains were bought at uniform prices regardless
of quality.
As recently as 2009, grain marketing was liberalised. In this new environment, the role
of the GMB was expected to change from one of monopoly purchasing, importing and
selling of maize and several other grains to that of buyer of last resort to help maintain
floor prices for maize and protect domestic producers. However, implementation has been
lagging so far (Kapuya et al., 2010).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Page 28
7.9
2.8
Real estate
6.6
1.9
1.7
4.6
2.1
Education
Health
Domestic services
Other services
4.4
1.6
2.1
6.6
4.8
8.2
17.9
2.9
8.3
2.3
2.3
20.7
4.7
15.1
1995
2.0
4.3
1.5
1.8
6.6
4.1
9.0
17.4
2.7
7.9
2.4
2.1
21.7
4.1
16.5
1996
3.2
4.7
1.6
1.4
7.1
3.9
9.1
17.7
2.8
7.5
2.8
2.1
21.5
4.1
17.0
1997
4.9
4.9
1.6
1.4
7.6
3.8
8.6
18.0
3.0
8.0
3.0
2.0
20.8
4.5
17.9
1998
5.3
5.4
1.5
1.4
7.2
3.7
8.7
18.1
3.3
7.9
2.7
2.2
20.5
4.4
18.4
1999
5.8
5.5
1.5
1.7
7.8
3.6
7.8
17.8
3.6
8.4
2.4
2.3
19.0
4.2
20.1
2000
7.3
5.6
1.7
2.1
8.7
4.0
7.7
17.6
3.9
8.6
1.6
2.6
18.9
3.8
20.4
2001
7.5
6.1
1.8
2.3
10.0
4.4
8.5
18.0
4.3
11.2
0.9
3.1
14.3
4.1
18.6
2002
7.8
4.1
1.6
1.0
6.8
5.2
9.2
20.7
2.1
10.5
1.3
2.8
17.0
5.2
20.3
2003
8.5
4.2
1.6
1.0
6.9
5.3
9.5
21.5
2.1
10.6
1.3
3.0
16.4
5.6
19.3
2004
5.5
4.1
1.6
0.9
6.7
5.3
9.6
21.2
2.9
10.8
2.1
4.1
14.9
5.8
15.6
2005
8.3
4.7
1.7
0.9
6.4
6.0
7.8
23.2
2.9
13.2
1.9
4.2
11.6
7.9
15.8
2006
8.2
4.7
1.7
0.9
6.4
6.0
8.8
24.3
2.7
13.1
1.9
4.2
11.5
7.6
14.6
2007
7.4
4.8
1.6
1.0
6.3
5.6
9.9
25.7
2.6
12.8
1.9
4.2
10.7
7.4
12.8
2008
7.0
4.6
1.6
1.0
6.1
5.2
9.8
29.0
2.7
10.4
1.8
4.2
10.7
6.9
13.1
2009
7.7
4.3
1.5
1.1
5.8
5.5
9.1
28.9
2.7
10.5
1.7
3.9
12.0
7.0
13.7
2010
7 426 7 560 7 499 7 117 6 519 6 234 5 588 5 356 5 008 4 752 4 182 3 785 3 790 4 000
Note: Colouring of columns is according to Zimbabwes macroeconomic period, orange being characterised as the FTLRP period.
2.5
4.6
1.7
2.2
6.4
4.8
6.7
16.9
2.7
8.1
3.1
2.3
22.3
4.5
16.3
1994
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
5.8
Public administration
6.4
16.5
3.2
Construction
2.2
22.7
Manufacturing
4.1
15.8
1993
Sector
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
8 000
Agriculture
7 000
Industry/manufacturing
6 000
Services
Total GDP
5 000
4 000
3 000
2 000
1 000
19
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
10
8 000
Agriculture
7 000
Industry/manufacturing
6 000
Services
Total GDP
5 000
4 000
3 000
2 000
1 000
19
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
10
20
0
-20
-40
-60
-80
-100
)
10
)
-
20
98
(1
9
To
ta
l
Total GDP
00
Industry/manufacturing
(2
0
Services
To
ta
l
Agriculture
20
08
10
20
09
20
08
20
07
20
06
20
05
20
04
20
03
20
02
20
01
20
00
20
99
19
19
98
-120
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 29
During the recovery period of 2009 and 2010, the economy recorded overall growth
from US$3.8 billion to US$4 billion, representing zero growth in 2009 but 5% growth in
2010. Agriculture grew by 2% and 9% respectively, and its contribution to GDP increased
marginally from 13.1% to 13.7% (see Figure 2.4).
120
100
80
60
40
20
0
-20
-40
19
8
19 0
8
19 1
8
19 2
8
19 3
8
19 4
8
19 5
8
19 6
8
19 7
8
19 8
8
19 9
9
19 0
9
19 1
9
19 2
9
19 3
9
19 4
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
0
20 4
0
20 5
0
20 6
0
20 7
0
20 8
0
20 9
10
-60
Despite the modest contribution of agriculture to the GDP, the importance of the sector
should not be underestimated, all the more so since the post-2000 collapse of the economy.
First, agriculture forms the basis of the direct and indirect livelihoods of almost 70%
of Zimbabwes population. With the economic crisis, formal sector employment started
to decline. From a peak of 1241500 in 1998 (i.e. a 68% unemployment rate), it fell
to 1012900 in 2002 (i.e. 80% unemployment) and to an estimated 400000 presently.
The formal employment rate is estimated at between 5% and 10%.3 This represents
a compound annual growth rate of 5.0%. A large element of this was the loss of the
formal agricultural employment: estimated at 345 100 in 1998, it fell to below 100000
after the countrys controversial land reform programme (Luebker, 2008). Non-agricultural
employment also fell from 896 400 in 1998 to 300 000 (which includes about 245 000
public servants). With agriculture continuously contributing between 25% and 30% of
3
See: www.cia.gov/library/publications/the-world-factbook/geos/zi.html
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 30
the economys overall formal employment (Kapuya et al., 2010), an estimated 66% of
Zimbabwes labour force depends on the sector, compared with 10% on industry and
manufacturing, and 24% on services.
Second, given the multiple functions of agriculture, the sectors strategic role within the
broader economy has been critical in maintaining economy-wide stability and growth.
In value terms, the agricultural sector forms the largest single source of export earnings,
contributing 40% of total exports since the late 1980s (Mudimu, 2003). Although
Zimbabwes agricultural exports fell by 54% and 74% in 2000 and 2007, largely due to
low production and productivity affecting the main commodities, in 2010, agricultural
exports contributed US$487.4million to the US$1253.4million total national export
proceeds. This represented a contribution of 38.9%, as against 22.9% for the fuels and
mining sectors and 33.7% for manufacturing. The main agricultural exports include
tobacco, sugar, beef, horticultural produce, coffee, tea and cotton lint, with tobacco and
cotton accounting for 83% in 2009 (see Table 2.5) (RBZ, 2009).
Table 2.5: Contribution of various commodities to agricultural export earnings (%)
Year
Tobacco
Sugar
Horticulture
Cotton lint
Others
Total
agricultural
exports
2000
54
12
15
100
2001
65
13
100
2002
62
18
100
2003
55
20
12
100
2004
45
11
17
24
100
2005
47
10
18
22
100
2006
43
17
11
23
100
2007
46
16
12
22
100
2008
50
11
26
100
2009
61
11
22
100
Kapuya et al. (2010) point out that the contribution of agriculture, in terms of food and
exports, has been the pillar of Zimbabwes economic stability, with years of drought
coinciding with negative economic growth. The importance of the agricultural sector is
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 31
reflected in the strong and direct positive correlation between agricultural performance
and overall economic growth. As shown in Figure 2.5, annual GDP declined during bad
agricultural years (the droughts of 1983, 1987, 1992 and 1995) and increased during years
of good agricultural performance (including 1996 and 2009). This explains the overall
negative growth rates during the FTLRP.
15
Droughts
Year-on-year growth
10
-5
-10
Land reform
19
8
19 0
8
19 1
82
19
8
19 3
84
19
8
19 5
8
19 6
87
19
8
19 8
8
19 9
9
19 0
9
19 1
92
19
9
19 3
94
19
9
19 5
9
19 6
9
19 7
9
19 8
9
20 9
0
20 0
0
20 1
0
20 2
0
20 3
04
20
*2 05
00
20 6
*2 07
00
20 8
*2 09
01
0
-15
Figure 2.5: Links between annual GDP growth rates and natural and socio-political
events in Zimbabwe, 19802010
Source: Adapted from Robertson (2009).
* Estimates based on Robertsons (2009) forecasts.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 32
Contribution to
agricultural GDP,
2008 (%)
Total,
2008
(000mt)
Total,
2009
(000mt)
Change,
2009
(%)
Contribution to
agricultural GDP
growth rate, 2009
Tobacco
25.5
45
56.5
26
2.69
Maize
14.0
575
1 240
116
6.69
Cotton
12.5
242
210
13
0.68
Beef
10.2
90
93
0.14
Sugar
6.8
298
286
0.11
Horticulture
6.5
60
50
17
0.45
Poultry
4.8
41
42
0.05
Groundnuts
3.2
131
216
65
0.86
Wheat
3.6
31
12
61
0.91
Dairy
2.9
46.4
36
22
0.27
Coffee
2.1
2.3
2.6
13
0.11
Soybeans
1.9
48
115
140
1.10
Tea
1.9
19
18
0.04
Paprika
1.1
40
0.18
Pork
0.8
14
0.05
Wildlife
0.6
53
56
0.01
Sorghum
0.6
75
181
141
0.35
Barley
0.4
34
35
Sheep
0.3
0.4
0.5
25
0.03
Sunflowers
0.2
39
680
0.56
Ostriches
0.1
15
15
10.00
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 33
The period between 2000 and 2008 saw a steady decline in the production volumes of
staple commodities and increasing reliance on food aid and imports from neighbouring
countries. For instance, in 2008/09, maize production fell to a little less than half a
million tons, down from its ten-year average of 1.6 million tons in the previous decade.4
During the past decade, national maize production has averaged around 1.1million tons,
with production peaking in only two seasons: 2001/02 (at 1.5million tons) and 2004/05
(at 1.7 million tons). Extreme levels of less than a million tons were experienced in the
2002 and 2005 droughts, but the worst year of the decade was 2008/09, when the country
produced only 0.57million tons (see Figure 2.6) (AIAS, 2010).
2.5
2500.0
2.0
2000.0
1.5
1500.0
1.0
Yield (tons/ha)
3000.0
1000.0
0.5
500.0
0.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
0.0
Maize was traditionally grown by smallholders and on commercial farms (see Table 2.7).
The drop in the national production of maize is mainly linked to: 1) the drastic decrease
of the area under maize in the commercial sector (from 160 000 ha to 55 000 ha); and
2) the drastic reduction in productivity (from 4.2 tons/ha to 1.5 tons/ha). The reduction
in productivity has mainly been attributed to the controlled pricing of maize, which has
not kept pace with rising input costs and hyperinflation. The smallholder communal sector,
however, remained stable, with an increase of the area under production, but with a low,
stagnating (700800 kg/ha) productivity (Sukume & Guveya, 2009).
4 This is below the 1980s average of 1.8 million tons per year. National maize production peaked at about 2.8 million tons in
1985, with average crop yields peaking at about 2.2 tons per ha that same year. Maize yields in the smallholder sector peaked
at 1.4 tons per ha.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 34
Communal
Production
(mt)
Area
(ha)
1980
600 000
900 000
1981
1 000 000
1982
Commercial
Yield
(kg/ha)
Yield
Production
(mt)
Area
(ha)
(kg/ha)
667
910 700
277 700
3 279
1 000 000
1 000
1 833 400
363 400
5 045
595 000
1 100 000
541
1 213 400
316 400
3 835
1983
285 000
1 050 000
271
624 800
283 900
2 201
1984
670 000
1 136 000
590
678 500
224 600
3 021
1985
1 558 000
1 018 000
1 530
1 153 000
238 000
4 845
1986
1 348 000
1 074 000
1 255
1 064 000
240 000
4 433
1987
1 064 000
627 700
1 695
466 000
147 100
3 168
1988
1 609 300
1 149 500
1 400
643 800
150 000
4 292
1989
1 188 200
1 030 000
1 154
743 000
168 300
4 415
1990
1 262 300
971 000
1 300
731 500
178 800
4 091
1991
1 019 300
926 200
1 101
566 500
175 000
3 237
1992
115 200
728 000
158
245 800
153 000
1 607
1993
1 133 600
1 040 000
1 090
878 250
198 000
4 436
1994
1 313 600
1 169 200
1 124
1 012 400
232 000
4 364
1995
399 400
1 209 200
330
440 200
188 700
2 333
1996
1 687 000
1 330 000
1 268
922 000
205 000
4 498
1997
1 453 000
1 483 000
980
738 370
157 100
4 700
1998
727 550
1 057 000
688
690 480
166 800
4 140
1999
845 300
1 262 000
670
674 260
184 400
3 657
2000
938 709
1 212 540
774
680 942
160 577
4 241
2001
993 940
1 084 100
917
532 388
155 888
3 415
2002
310 638
1 199 021
259
294 120
128 833
2 283
2003
817 446
1 225 791
667
241 340
126 577
1 907
2004
1 505 970
1 400 800
1 075
180 181
93 010
1 937
2005
837 304
1 659 424
505
78 062
70 443
1 108
2006
1 385 957
1 650 158
840
98 882
62 841
1 574
2007
1 080 624
1 390 132
777
80 986
55 683
1 454
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 35
In 2009, the national production of maize (mainly by smallholders) was 130% higher
than in 2007/08. The increase in production is related to the significant extension of
the area under production, from 1.2 million ha to 1.6 million ha. This was combined
with a favourable rainfall pattern and a relaxation of market controls on input prices (see
Box 2.2). Combined with input supply from donors and the government (see Chapter 3),5
this ensured a moderate availability of seed, fertiliser, fuel and draught power. The average
yield was 800kg/ha, which compares unfavourably with the 1990s ten-year average of
1.25tons/ha. In 2010, national maize production is estimated at 1.3 million tons, with
an average yield that should remain unchanged (FAO/WFP,2010). Although production
recovered, the country is expected to import at least 400 000 tons (inclusive of food aid)
to meet food and industrial needs (see Table 2.8).
Box 2.2: Organisation of Zimbabwes grain sector
In the 2000s, Zimbabwes policy on grains shifted back to state-controlled markets,
which were held to achieve and ensure food self-sufficiency, while keeping prices low
for consumers. The target commodities for state controls were maize and wheat, and
their milled products. The main market-related instruments for achieving the policy
objective consisted of the following (Kapuya et al., 2010):
Statutory instruments required all maize and wheat produced to be sold through
the parastatal GMB. Since 2001, all producers of maize and wheat have been
required by law to deliver their produce to GMB within 14 days of harvest.
All handlers of grain and products were to be registered and submit quarterly
returns to GMB regarding stocks.
The government set a predetermined producer price for maize and wheat,6
the selling price from GMB to the grain processors, and the wholesale and
retail prices of milled products.
State controls included exclusive rights for the GMB to trade in the main grains.
The GMB was the custodian of the strategic grain reserve of up to 936 000 tons
of maize and 500 000 tons of wheat.
Small grains, such as finger millets, pearl millets and sorghum, could be sold
on private open markets, with the GMB maintaining a minimum floor price.
Implementation of the policies has varied. For instance, low production in the past
few years has made it difficult to maintain strategic reserves, while a lack of foreign
currency has precluded the use of import markets to replenish reserves (Sukume &
Guveya, 2009). In emergencies, the GMB has given permission for processors of noncritical foods and stockfeed to import maize and wheat. The government has also
allowed agro-processors to contract farmers to produce grains in exchange for the
provision of inputs.
The effect of the relaxation of market controls on donor programmes has, however, not been established.
Prices were to be set at the South African Futures Exchange f.o.b. prices plus 25%.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 36
National
production
(000 tons)
1980
1 511
1981
Maize
availability
(000 tons)
Change
in stock
(000 tons)
Exports
(000 tons)
Imports
(000 tons)
1 487
100
69
145
2 833
1 590
1 000
305
1982
1 808
1 557
100
492
1983
910
1 415
1 000
2 526
1984
1 349
1 401
269
1985
2 711
1 836
800
285
1986
2 412
1 771
320
495
1987
1 530
1 438
750
393
1988
2 253
1 606
340
314
1989
1 931
1 562
250
174
1990
1 994
1 532
310
414
1991
1 586
1 559
500
230
83
1992
361
1 729
100
1 845
1993
2 012
1 791
500
396
205
1994
2 326
1 772
400
597
1995
840
1 770
44
133
1996
2 609
329
101
1997
2 191
310
1998
1 418
299
189
1999
1 520
385
2000
1 620
2001
1 526
89
2002
605
764
2003
1 059
340
2004
1 686
589
2005
915
271
2006
1 485
822
2007
953
408
2008
471
670
2009
1 240
772
2010
1 300
411
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 37
The main objective in the maize sector is to increase productivity to offset the need for
grain imports and reduce input costs to the food and feed industry. The steady expansion
of the area under maize from 2000 to 2010 needs to be combined with a concomitant
increase in average yields back to the levels previously achieved. This would allow the
country to double its maize production.
Wheat production
Wheat is the second most important grain crop after maize. A staple crop, wheat
contains 20% bran, which is sold to bakers as wheat bran or to millers as an ingredient
for stockfeed. All commercial wheat produced in Zimbabwe is grown under full irrigation
during winter. Due to its resource-intensive nature, it has traditionally been grown by
large-scale commercial farmers (Kapuya et al., 2010).
300.0
250.0
200.0
150.0
100.0
50.0
0.0
Yield (tons/ha)
350.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
Consequently, over the past ten years, there has been a significant decline in the level
of wheat output, following the disruptions in winter wheat production caused by the
ongoing land reforms. During the FTLRP decade, wheat production steadily decreased
from a peak of over 250 000 tons in 1999/2000, reaching 150 000 tons in 2007 and
virtually collapsing to 31 000 tons after 2008 (see Figure 2.7). In 2010, production
remained low at 30 000 tons. Because wheat is resource-intensive and its production is
highly technical, much of the precipitous drop in wheat output has been attributed to
the lack of resources to meet the crops high resource demands and the lack of technical
knowledge among beneficiaries under the land reform programme.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 38
Efforts over the past decade to capacitate the land beneficiaries and push for increased
wheat production have not been successful. The destruction of irrigation equipment during
land invasions, high input costs, electricity shortages (which have become more severe),
and high costs of borrowing have hindered an expansion and stabilisation of the wheat
production base. As a result, yields have fallen from 5.4 tons/ha in 2001 to only 2 tons/ha in
2009, while the area under cultivation has decreased (see Figure 2.7). The limited impact of
government programmes was also due to the controlled markets (against hyperinflation),
which has, in the past, led to unsustainable net farm incomes. This has limited farmers
capacity to access adequate resources to produce wheat (Sukume & Guveya, 2009).
Small grains
Small grains comprise sorghum, pearl millet (mhunga) and finger millet (rapoko). After
a period of stagnation during the 1990s, aggregate small grains production has seen a
steady increase during the 2000s (see Table 2.9). Mainly grown by small-scale farmers, the
area and output of sorghum, pearl millet and finger millets have increased since 2002.
Small grains production grew from an average of about 50 000 tons during the 1990s to
as much as 270 000 tons in 2009 (AIAS, 2010). The main attraction of small grains has
been the absence of government price and movement controls, such as those affecting
maize (World Bank & Government of Zimbabwe, 2010). In addition, small grains ensure
reasonable yields without fertiliser, a particularly attractive trait given the shortages of
these inputs in the 2000s. With these distinct advantages, it, however, remains unclear
how the substitution effect of small grains for maize has affected food security. Table 2.9
shows the production of small grains.
Table 2.9: Small grains production, 20002010
Year
Yield
(tons/ha)
Output
(000 tons)
Area harvested
(000 ha)
2000
0.13
50.0
377.4
2001
0.42
90.7
215.8
2002
0.46
99.6
215.8
2003
0.18
35.8
202.8
2004
0.25
131.2
518.3
2005
0.59
196.1
333.9
2006
0.26
128.6
498.2
2007
0.38
138.6
368.8
2008
0.2
93.2
472.5
2009
0.39
270.2
644.1
2010*
0.31
194.0
630.0
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 39
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 40
2.5
2000.0
2.0
1500.0
1.5
1000.0
Yield (tons/ha)
2500.0
1.0
500.0
0.5
0.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
0.0
The liberalisation of markets and the stabilisation of the economy since 2009 have
improved the prospects for tobacco. Although production levels are only half of what
was produced in 2000/01, uptake among smallholders (including a sizeable proportion
of resettled farmers) was significant, potentially supplying more than 50% of the national
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 41
crop. There is substantial scope for the expansion of contract farming linked with the
supply of agricultural inputs and private extension support, addressing the weakness of
capital markets in funding agricultural inputs and the revitalisation of irrigation systems
(Banya, 2011). The growth of tobacco production among smaller-scale farmers depends on
the speed of the adoption of higher inputs and more sustainable farming practices.
Cotton
Cotton is Zimbabwes third most important agricultural commodity (after maize and
tobacco), contributing 12.5% of agricultural GDP and 22% of the value of agricultural
exports in 2008. Most cotton lint is exported, but cottonseed is an essential input for the
domestic vegetable oil and stockfeed industries.
2.0
450.0
1.8
400.0
1.6
350.0
1.4
300.0
1.2
250.0
1.0
200.0
0.8
150.0
0.6
100.0
0.4
50.0
0.2
0.0
0.0
Yield (tons/ha)
500.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
Zimbabwes cotton production peaked at 311 000 tons in 20007 before declining to 246 000
tons in 2009 (see Figure 2.9). Compared to other crops, cotton production did not decrease
significantly, as the cotton sector has long been a smallholder-dominated sector, with on
average 91% of the crop grown by smallholders. As such, it remained largely unaffected
by the FTLRP. Instead, the trends in cotton production over the last decade can largely
be explained by firms engaging or disengaging from outgrower relationships. Cotton has
seen several firms involved in outgrower schemes, which have helped to maintain growth.
The Cotton Company of Zimbabwe (Cottco) cotton scheme was temporarily disrupted
by the entry of many competitors in the market, which led to an increase in defaults
due to side-marketing by contracted farmers, especially in the 2002 season (Sukume &
Guveya, 2009).
However, FAOSTAT data suggests that production peaked at 364 000 tons in 2004.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 42
The main constraint affecting cotton production is low yields, averaging less than
1 ton/ha, which stem mainly from low investment in agro-chemicals and a decline in the
quality of management practices. This may explain a large part of the year-on-year
variations in output, as well as the productivity differences between small-scale and
commercial farms. Farmers are frustrated by what they perceive as low product prices,
caused by depressed international market prices. Investments in credit and input supply on
the part of ginners are undermined, as farmers renege on the agro-processors outgrower
contracts (see Box 2.4).
Box 2.4: Organisation of Zimbabwes cotton sector
The cotton industry used to be characterised by limited price controls and price-related
regulations, with markets being relatively free of government intervention. Much of
the production was organised through contractual arrangements. Cottco, formerly a
parastatal called the Cotton Marketing Board, has received preferential treatment in
terms of market access since the structural adjustments that deregulated the market
and reduced government ownership of the company. The government stake in
Cottco declined to 10% in 2001/02, but its reduced ownership did not eliminate the
governments bias towards the company.
Several adverse developments affected the cotton sector after market liberalisation.
These include the following:
The worsening macroeconomic situation, beginning in the 2001/02 season,
led to higher defaults in the input credit scheme. This was the direct result
of Cottcos failure to pass on to producers the massive real devaluation of
the Zimbabwean dollar early in 2002.
Subsequently, there was a rapid entry of ginning and buying companies that
offered better prices than Cottco. These new entrants captured the input-credittied cotton (technically called side-marketing), which eventually led to defaults.
The entry of new firms continued such that by 2003, Cottcos market share had
dropped from 70% to 58%. This jeopardised the sectors input credit scheme
(dominated by Cottco), which had been fundamental to its growth.
The intense competition that came because of new entrants (often small, most
of which do not grade cotton) led to a collapse of the quality control system, with
farmers being paid fixed prices for seed cotton irrespective of quality. The inevitably
damaging effects on the quality of Zimbabwean cotton on international markets
have led to poor exports. Side-marketing has also negatively affected the grower
contract arrangements that ensured input finance.
Source: Sukume and Guveya (2009); Muir-Leresche and Muchopa (2006).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 43
2.0
450.0
1.8
400.0
1.6
350.0
1.4
300.0
1.2
250.0
1.0
200.0
0.8
150.0
0.6
100.0
0.4
50.0
0.2
0.0
0.0
Yield (tons/ha)
500.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
Zimbabwe produces roughly a third of its soybean requirement. From about 140 000 tons
in 2000/01, production decreased to between 40 000 and 60 000 tons in 20032005,
and was revitalised to 120 000 tons in 2009 (AIAS, 2010) (see Figure 2.9). As with maize,
the collapse of the commercial sector affected national production.
National average yields have been stagnant over the past eight years, with the only
significant decrease, in 2007, due to drought. The yield of the communal sector is up to
1.562 ton/ha just under commercial sector yields. With the smallholder sector increasing
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 44
its soybean area significantly (it almost tripled between 2003 and 2009), national
production is seemingly catching up, although it remains unstable, with major fluctuations.
(Banya, 2011).
Two main problems limit the expansion of production. First, markets are thin, given
significant price volatility and high transaction costs. Market risks discourage both
producers and buyers. Second, the high cost of borrowing and the scarcity and cost of
inputs prevent the sector from expanding the production base to meet the demand for
150000 tons by the local oil manufacturing sector. Interventions to increase soybean
production by the RBZ, the Soybean Task Force, and the WK Kellogg Foundation-funded
programmes under the Agricultural Research Council (since 2004) have not brought about
the desired results (Kapuya et al., 2010) (see Box 2.5).
With the country not meeting national requirements, deficits are resolved partly through
direct but unconfirmed soybean imports and partly through imports of products dependent
on soybean inputs, such as meat, milk, margarine and cooking oil. In 2009, Zimbabwe
imported over US$130 million in these products (Kapuya et al., 2010).
Box 2.5: Organisation of Zimbabwes soybean sector
Soybean (as well as oilseed crops, such as groundnuts, sunflower seeds and cottonseed)
operate in markets in which pricing is largely free of government controls. However,
during food emergencies, soybean exports were banned. The marketing of oilseeds is
done through the GMB, stockfeed producers and oil expressers.
The most important and perhaps dominant user of oilseed crops is the oil expression
sector, which uses the seed as a primary raw material in the manufacture of cooking
oil and by-products such as stockfeed and industrial oils. There are five key players
in Zimbabwes oil expression sector: Surface Investments (53% market share), Olivine
Industries (24%), National Foods (12%), United Refineries (3%) and Grafarx Consortium
(4%). Other players include on-farm processing and cottage industries, which account
for 4% of overall oilseeds (Kapuya et al., 2010).
Soybean producers are represented within the two main farmer associations, the
Zimbabwe Farmers Union (ZFU) and the Commercial Farmers Union (CFU). Under
the arm of the CFU, soybean growers are represented by a commodity association, the
Commercial Oilseed Producers Association. The Association represents the interests of
commercial oilseed growers in all aspects of the production and marketing of oilseed
crops, which include soybeans. It promotes and supports research, extension and the
utilisation of technology to ensure the development and expansion of the industry.
Soybean producers, through their farmers association, have been engaged with the
Agricultural Research Council and the Soybean Task Force in several research initiatives
meant to capacitate farmers and improve production (Kapuya et al., 2010).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 45
2.4.4 Livestock8
Cattle
Before the land reform programme, the structure of the livestock subsector was dualistic,
with the large-scale commercial sector dominating in the production of formally marketed
livestock and livestock products, such as beef, milk, chicken and eggs. Due to the land
reform programme, from 2001 onwards, cattle on large-scale farms have declined
significantly, from about a quarter of the national herd to between 9% and 13% (see
Table 2.10).
Table 2.10: Trends in the national cattle herd, 19802005
Year
Commercial
(000)
Communal
(000)
1980
2 410
2 869
1981
2 391
1982
2 400
1983
Resettlement
(000)
A1
(000)
A2
(000)
Total
(000)
5 279
2 895
5 286
3 240
52
5 692
2 358
3 105
83
5 546
1984
2 231
3 087
147
5 465
1985
2 090
3 231
178
5 499
1986
2 126
3 453
204
5 783
1987
2 013
3 609
296
5 918
1988
1 990
3 501
314
5 805
1989
1 994
3 555
301
5 850
1990
2 046
3 777
395
6 218
1991
2 138
3 803
433
6 374
1992
1 948
3 620
346
5 914
1993
1 748
2 964
308
5 020
1994
1 670
3 138
332
5 140
1995
1 617
3 070
305
4 992
1996
1 642
3 104
332
5 078
1997
1 625
3 427
323
5 375
1998
1 560
3 495
395
5 450
1999
1 680
3 690
468
5 837
2000
1 550
3 793
612
5 955
2001
1 291
4 398
505
6 195
2002
329
4 055
471
169
24
5 048
2003
360
3 944
548
169
93
5 116
2004
377
3 755
535
307
52
5 027
2005
3 604
520
324
319
4 768
20062008*
Chinogaramombe, N, CEO CSC, Presentation to the Portfolio Committee on Lands, Land Reform and Agriculture, 16 October 2007.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 46
On the one hand, in the period after the land reform, production is still marginal on the
A2 resettlement farms (which replaced the large-scale commercial farms), with most of the
newly settled farmers trying to grow their livestock holdings (Sukume & Guveya, 2009).
On the other hand, since 1998, the number of cattle in the small-scale sector has been
increasing (see Table 2.10).
Although export earnings from beef exports declined from US$48 million in 1998 to less
than US$1 million in 2005 (Sukume & Guveya, 2009), the shortage of beef from the largescale sector has increased the demand for smallholder cattle. This is demonstrated by the
increase in slaughtering from that sector since 2001, leading to higher prices being offered
for smallholder cattle (see Box 2.6).
Box 2.6: Organisation of Zimbabwes livestock sector
Cattle producers sell products or animals by private treaty, on contract or at auctions
to other farmers locally or, in some cases, outside the country. Large-scale beef
producers use all three methods, which are highly institutionalised, for selling weaners
or pen-fed or breeding animals. Though open to small-scale beef producers, the
accessibility of the marketing channels is rather limited, with farmers having to travel
long distances to auction pens and marketing information being poorly distributed.
As a result, most smallholder beef is traded informally, without the benefit of more
competitive auction markets.
The beef sector is served by a large number of well-equipped abattoirs, the largest
being the parastatal Cold Storage Commission (CSC). CSC has the only slaughter
facilities approved for exports to the European Union. Until the disruptions in beef
production from the land reforms, it used to process all meat exported to the
European Union under the 9100 ton quota provided for under the Lom Convention
Preferential Trade Agreement. CSC also has the only approved facilities to collect and
process blood meal for the stockfeed industry. The current shortage in blood meal
is largely due to the low throughput in CSC abattoirs, which, in turn, is due to low
government-controlled prices offered to beef farmers for meat destined for local
production (Sukume & Guveya, 2009).
An extreme example of price controls occurred in July 2007, when the government
announced a price freeze on various commodities, including beef. As part of the price
freeze, the government fixed the producer price of cattle. The result was a drastic
reduction in cattle offered for slaughter, from around 20 000 per month before the
price controls to between 1700 and 2000 in the months the freeze was in effect
(Sukume & Guveya, 2009).
The beef and livestock industry in general suffered a number of constraints over the years.
These included low offtake of cattle; price controls on beef, which led to poor viability of
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 47
these enterprises; a lack of information on temporal and spatial livestock prices, auction
dates and other market-relevant information; and rising levies and value added taxes
(Sukume & Guveya, 2009).
Poultry
Poultry accounts for almost 5% of agricultural GDP, but holds substantial growth prospects
as consumer incomes rise (Mudzonga, 2009b). In contrast to other commodities,
the production of chicken meat grew rapidly from the late 1980s to the late 2000s,
peaking at 56 683 tons in 2007 (see Figure 2.10). The reason for this growth is the high
demand for cheaper sources of protein, as consumers gradually shifted from beef to
chicken (Mudzonga, 2009b). Per capita consumption of chicken protein increased from
0.67 g/person/day in 2000 to 1.55 g/person/day in 2007, while per capita supply increased
from 1.96 kg/person/year in 2000 to 4.55 kg/person/year (FAO, 2010).
5.0
60.0
4.5
50.0
3.5
40.0
3.0
2.5
30.0
2.0
Yield (tons/ha)
4.0
20.0
1.5
1.0
10.0
0.5
0.0
19
80
19
81
19
82
19
83
19
84
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
0.0
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 48
The first two categories produce the bulk of Zimbabwes chickens, but information
on production levels becomes scarcer moving from the large-scale to more traditional
producers.
Only in 2001/02 did production decline significantly, owing to feed and electricity
constraints. In addition, since 2008, following the lifting of the import ban on chicken
meat and the importation of cheap chicken meat from South Africa, Brazil, Argentina
and Uruguay, production has fallen to an estimated 27 600 tons, an almost 50% decline
(Mudzonga, 2009b).9 Imports grew from zero in November 2008 to 1200 tons/month
in March 2009 (Mudzonga, 2009b). During this period, prices fell from an average of
US$10/kg to US$3.30/kg. With inefficient and low local production capacity, Zimbabwe
changed from being a regular exporter of meat, eggs and day-old chicks to becoming
a regular importer (see Box 2.7). As cheaper chicken imports threatened the viability of
the domestic industry, local chicken producers lobbied government for the reinstatement
of tight import restrictions. Monthly import quotas were put in place to control import
quantities and, in April 2010, a three-month protectionist policy was implemented to bar
imported chickens. In May 2010, markets reciprocated through an increase in the price
of chicken to between US$4/kg and US$5/kg (Nhambura, 2010).
Box 2.7: Organisation of Zimbabwes poultry sector
Zimbabwes poultry sector is one of the most organised, with the top large-scale
poultry producers contracting farmers as outgrowers. Under such schemes, selected
farmers are provided with day-old chicks, veterinary services, medicines and feeds.
The industry is represented by its main umbrella body, the Zimbabwe Poultry
Association, and is organised and regulated through the Poultry Industry Board.
Zimbabwes poultry industry has been relatively free from market control and was
cushioned before 2007 by a protectionist ban on chicken imports. The import ban
was in line with Zimbabwes longstanding policy against genetically modified food
on the grounds of human safety and the potential threat of contamination.
For the same reason, the industry is strictly regulated by the Poultry Industry Board, in
conjunction with the Agriculture Research Councils Biosafety Board and the Veterinary
Department in the MoAMID, to enforce the strict sanitary and phyto-sanitary
requirements under the Statutory Instrument 20/2000 Biosafety Regulations.
The difference between domestic and international prices has been attributed to several
reasons. First, Zimbabwe faces higher costs of procuring day-old chicks (between
US$0.80 and $1.05, compared to between US$0.30 and US$0.50 in other international
9 Brazilian and South African chicken imports land in Harare at US$1.90/kg and US$2.15/kg respectively. These prices are below
Zimbabwean producers local costs of production, estimated at between US$2.50 and US$2.85 for medium to large-scale farming
production (Mudzonga, 2009b).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 49
markets). Second, low maize production causes higher production costs, because
maize obtained for chicken feed is traded at import parity prices averaging
US$350/ton, compared to international costs of US$170/ton. Maize constitutes 70%
of chicken feed, and poultry production is a major market for stockfeed, accounting
for about 40% of total feed sales (World Bank & Government of Zimbabwe, 2010).
Third, imported chicken is brined at levels of up to 35%, while brine inclusion in
Zimbabwe is limited to less than 15%. This underlines the concerns of the Zimbabwe
Poultry Producers Association that the weights of imported chickens are increased
through excessive brining during processing, and the higher brining levels give foreign
producers the ability to reduce their price per kg. In addition, Zimbabwe employs
more costly traditional organic production systems, in which chickens take six to
eight weeks to reach maturity (The Herald, 1 April 2009). In contrast, sophisticated
global technological advancements have seen chicken production cycles reduced
to an average of only three weeks. While it is clear that domestic producers face a
production technology constraint, the contraction of the chicken sector could also
be explained by exogenous factors, such as unviable administered prices in 2007 and
2008. A combination of these factors left the industry with a low capacity utilisation,
estimated at 20% in October 2009 (Mudzonga, 2009b).
The recovery of the poultry sector requires three major investments. First, greater stability
in the electricity supply will facilitate expanded production and reduce the cost of day-old
chicks. Second, the industry remains concerned about the risks of Newcastle disease and
avian flu. Investments are needed in disease surveillance and vaccination. Finally, the
competitiveness of the industry depends on the availability of low-cost feed. This requires
investments in improving the productivity of both maize and soybean. The growth of the
industry will also require tariff and quota protection from government in order to control
imports (Mudzonga, 2009b).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 50
which there was household food insecurity in the midst of a national production surplus.
At that time, 30% of Zimbabwes children under five were chronically malnourished and,
despite food availability through domestic production (and storage in some years), up
to 8.5% of the population still required food aid (Rukuni, 1994). This was because of a
combination of the effects of the countrys pan-territorial pricing policy and the controlled
grain markets that restricted grain movement such that it could not easily be transferred
from surplus to deficit areas (Kapuya et al., 2010). However, the dimension of the food
security problem changed after 2000, when Zimbabwe had national grain shortages amid
a modest level of household food insecurity, thereby moving from hunger amid plenty to
hunger amid shortages. Thus, the food security landscape shifted from an accessibility
problem in the 1980s and the 1990s to what can be viewed as both an accessibility and
an availability problem after 2000 (Kapuya et al., 2010).
Although, at national level, food security is directly related to production trends, these
temporal, geographical and social nuances make it difficult to discern precise trends at
household level.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 51
Year
Total cereal
required
(000 t)
Commercial
As food aid
imports
% selfsufficiency
Aid as % of
import
% aid
compared
to total
required
2001/02
1 940
448
434
14
77
3.13
0.72
2002/03
1 940
1 216
855
361
37
29.69
18.61
2003/04
1 940
830
433
397
57
47.83
20.46
2004/05
1 940
835
686
149
57
17.84
7.68
2005/06
1 940
848
755
93
56
10.97
4.79
2006/07
1 928
441
342
99
77
22.45
5.13
2007/08
1 928
789
502
287
59
36.38
14.89
2008/09
1 875
986
728
258
47
26.17
13.76
2009/10*
1 738
680
500
180
61
26.47
10.36
Source: World Bank and Government of Zimbabwe (2010) and composed of different CFSAM reports,
Southern African Regional Poverty Network (SARPN) and Famine Early Warning Systems Network (FEWS NET) (2005/06),
FAO/Global Information and Early Warning System (GIEWS) Crop Assessment reports
(ftp://ftp.fao.org/docrep/fao/010/ai469e/ai469e00.pdf)
Notes:
1. 2009/10 figures are estimates in FAO/WFP 2009.
2. One note of caution: in the past, GMB imported cereals and occasionally distributed these in the form of aid assistance.
These imports are included under commercial imports and not under aid. The FAO/WFP 2009 estimated that GMB would
not have the financial means to purchase much food, and suggested that it would import only 10 000tons of maize and
10 000tons of wheat. It is not clear whether this has indeed been purchased. The cereal requirement has been declining
because of the marginal reduction in the overall population.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 52
1 395.74
1 195.67
000 tons
000 tons
000 tons
000 tons
000 tons/
year
kg/person/
year
000 tons
000 tons
000 tons
000 tons
000 tons
000 tons
Production: Total
Opening stock
Total supply
Ending stock
Consumption
Per capita
consumption
Exports
Imports
Net trade
Observed demand
Unexplained stock
Total demand
3 318.83
313.03
3 005.79
414.38
0.00
414.38
117.75
3 318.83
1 325.06
1 993.77
1.30
t/ha
4.09
1 149.80
Communal yield
000 ha
Total area
harvested
971.00
t/ha
000 ha
Communal area
178.80
1990
Commercial yield
000 ha
Commercial area
Unit
2 981.96
783.34
2 198.62
230.22
0.00
230.22
117.77
1 229.40
739.00
2 981.96
1 395.74
1 586.22
1.10
3.24
1 101.20
926.20
175.00
1991
1 099.90
602.79
1 702.68
82.17
83.17
1.00
116.77
1 252.86
532.00
1 099.90
739.00
360.90
0.16
1.61
881.00
728.00
153.00
1992
3 293.63
1 199.69
2 093.94
392.03
204.97
597.00
120.51
1 340.91
361.00
3 293.63
967.00
2 326.63
1.12
4.36
1 401.20
1 169.20
232.00
1994
2 543.93
1 682.71
861.22
1 448.88
1 845.00
396.12
122.13
1 343.10
967.00
2 543.93
532.00
2 011.93
1.09
4.44
1 238.00
1 040.00
198.00
1993
1 200.27
587.58
1 787.85
44.10
0.00
44.10
120.42
1 352.75
391.00
1 200.27
361.00
839.27
0.33
2.33
1 397.90
1 209.20
188.70
1995
2 999.53
1 302.77
1 696.76
196.18
133.00
329.18
122.73
1 403.58
97.00
2 999.53
391.00
2 608.53
1.27
4.50
1 535.00
1 330.00
205.00
1996
2 288.71
359.36
1 929.36
209.09
101.24
310.33
120.27
1 400.27
320.00
2 288.71
97.00
2 191.71
0.98
4.70
1 640.10
1 483.00
157.10
1997
1 737.77
530.00
2 267.77
299.30
0.00
299.30
118.54
1 403.47
565.00
1 737.77
320.00
1 417.77
0.69
4.14
1 223.80
1 057.00
166.80
1998
2 084.89
240.80
2 325.69
137.72
189.13
326.85
120.24
1 445.50
742.46
2 084.89
565.00
1 519.89
0.67
3.66
1 446.40
1 262.00
184.40
1999
2 361.98
263.67
2 625.65
21.77
384.60
406.36
118.23
1 440.79
1 163.10
2 361.98
742.46
1 619.51
0.77
4.24
1 373.12
1 212.54
160.58
2000
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 53
Page 54
000 tons
000 tons
000 tons
Observed demand
Residual stock
Total demand
kg/person/year
000 tons
000 tons/year
Consumption
Net trade
000 tons
Ending stock
000 tons
000 tons
Total supply
Imports
000 tons
Opening stock
000 tons
000 tons
Production: Total
Exports
t/ha
000 ha
Communal yield
000 ha
t/ha
000 ha
Commercial yield
Unit
684.67
180.73
865.41
1 216
1 216
92.00
1 509.00
120.00
684.67
80.00
604.67
0.26
2.28
1 327.85
1 199.02
128.83
2002
1 756.02
303.81
1 452.21
835
835
99.00
1 517.11
120.00
1 756.02
70.00
1 686.02
1.08
1.94
1 493.81
1 400.80
93.01
2004
1 178.98
134.85
1 313.83
830
830
95.00
1 584.00
70.00
1 178.98
120.00
1 058.98
0.67
1.91
1 352.37
1 225.79
126.58
2003
1 036.06
60.94
975.12
848
848
95.33
1 541.11
120.00
1 036.06
120.00
916.06
0.51
1.11
1 729.87
1 659.42
70.44
2005
120.00
1 485.04
0.84
1.57
1 713.00
1 650.16
62.84
2006
1 605.04
170.61
1 434.44
441
441
96.44
1 565.10
120.00
1 605.04
* Ending stocks are derived from supply and demand stock differences.
2 689.57
1 271.51
1 418.07
448
448
110.00
1 418.72
88.00
2 689.57
1 163.10
1 526.48
0.92
3.42
1 239.99
1 084.10
155.89
2001
1 281.10
42.35
1 323.45
789
789
96.93
1 589.09
120.00
1 281.10
120.00
1 161.10
0.78
1.45
1 445.82
1 390.13
55.68
2007
2 258
680
680
1 578
512
2 770
19
1 243
1 508
2008*
2 319.00
331.00
448.00
448.00
1 540.00
874.50
3 193.50
35.50
1 354.00
1 804.00
2009*
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Milletsorghum
Wheat
Rice
All
cereals
1 401
194
67
1 661
47
37
84
Total production
1 354
194
30
1 577
Utilisation
1 651
194
221
23
2 089
Food use
1 360
147
181
23
1 712
Feed use
150
150
Seed use
54
2.7
63
Losses
68
10
79
Closing stocks
50
35
85
251
196
55
154
99
55
23
23
428
317
111
Domestic availability
Opening stocks
In conclusion, it is important to highlight two trends. First, during this last decade,
Zimbabwe has evolved from a food-autonomous country to one dependent on food
assistance. Production has been on the rise since 2009, with 2010/11 possibly close
to breakeven level. Second, however, production shows a much more irregular pattern,
with years of quasi-sufficiency (20042006) and others characterised by a huge deficiency
(2005). Probably related to the increased sensitivity of production to natural elements
(rain and drought) because of collapsed infrastructure and services, it questions the solidity
of the recent increases and their implications at household level.
11 www.cia.gov/library/publications/the-world-factbook/geos/zi.html
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 55
Since 2000, besides the food deficit at national level, there has been an ongoing food
security predicament at household level. Already very high at the beginning of the crisis
(between 40% and 55.2% of the total population), the number of the insecure has
varied between 1.5 million and 4.1 million since 2005 (respectively 12.7% and 37%)
(see Table 2.15). Of the 2.3million food insecure people in 2009/10, the large majority
resides in rural Zimbabwe. An estimated 40% of the inhabitants of communal areas are
food insecure (7% chronically and 33% transitory). In urban areas, about 15% of the
population is food insecure (7% chronically and 8% transitory) (FAO/WFP, 2010).
Table 2.15: Evolution of food insecurity in Zimbabwe
Year
2001/02
6 074 000
55.2
2002/03
4 400 000
40.0
2003/04
5 423 000
49.3
2004/05
2 300 000
20.9
2005/06
1 500 000
13.6
2006/07
1 400 000
12.7
2007/08
4 100 000
37.3
2008/09
1 571 799
14.3
2009/10
2 300 000
20.9
Source: World Bank and Government of Zimbabwe (2010) and composed of different FAO/WFP reports,
SARPN and FEWS NET (2005/06), FAO/GIEWS Crop Assessment Reports
(ftp://ftp.fao.org/docrep/fao/010/ai469e/ai469e00.pdf).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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In addition, with standard deviations being high, certain wards within these provinces
might be affected more severely (see Table 2.16). The Zambezi valley (Matabeleland North)
remains an area of exceptionally high food insecurity, with between 45% and 48% of the
population being food insecure (see Figure 2.12), particularly from January to March, when
stocks are low.
Table 2.16: Food insecure population by province, 2009
Number of food insecure people
Rural
population
Aug 2009
July to
September
October to
December
January to
March
Manicaland
1 460 402
110 596
179 656
260 251
18
Mashonaland Central
1 098 501
75 605
139 121
190 557
17
Mashonaland East
1 135 089
58 730
117 315
174 620
15
Mashonaland West
1 037 848
64 293
112 612
161 300
16
Masvingo
1 377 912
94 489
141 271
205 425
15
Matabeleland North
706 836
93 507
133 300
157 750
22
Matabeleland South
698 502
62 739
113 475
153 048
22
Midlands
1 291 056
116 236
200 280
268 849
21
Total
8 806 147
676 195
1 137 030
1 571 799
18
Province
% food
insecure
Mashonaland West
Mbire
Hurungwe
Centenary
Kariba Urban
Guruve
Makonde
Gokwe North
Harare
Kadoma
Seke
24 - 27
Mutasa
Hwange
Nkayi
Lupane
Chikomba
Kwekwe
Matabeleland North
Chirumhanzu
Bubi
Tsholotsho
Gweru
Umguza
Chimanimani
Shurugwi
Bulawayo Urban
Bulilima
42 - 45
Bulawayo
Umzingwane
Bikita
Lake Kariba
Conservation Area
Urban Area
Masvingo
Chivi
Insiza
Plumtree
Mangwe
45 - 48
Buhera
Mutare
Gutu
Zvishavane
39 - 42
Mutare Urban
Midlands Province
33 - 36
36 - 39
Makoni
Hwedza
27 - 30
30 - 33
Nyanga
Marondera
Hwange Urban
21 - 24
Mutoko
Goromonzi
Murehwa
Chegutu
Gokwe South
15 - 18
18 - 21
Bindura
Harare Urban
Binga
Victoria Falls
Mudzi
Zvimba
9 - 12
12 - 15
Mashonaland East
Mashonaland Central
Mazowe
6-9
UMP
Shamva
Kariba
3-6
Rushinga
Mt Darwin
Karoi Urban
Mberengwa
Chiredzi
Matobo
Gwanda
Manicaland
Chipinge
Zaka
Mwenezi
Masvingo Province
Matabeleland South
Beitbridge
International Boundary
Province Boundary
Beitbridge Urban
District Boundary
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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2011
2012
2013
2014
2015
12.9
12.5
12.2
11.9
12.0
7.9
8.9
10.0
11.0
12.1
12.3
12.1
12.1
12.5
13.1
3.9
3.7
3.7
3.7
3.6
Construction
1.9
2.0
2.1
2.2
2.3
10.3
9.9
9.6
9.3
9.2
2.7
2.6
2.7
2.8
2.8
27.0
26.2
25.5
24.5
23.5
9.2
9.2
9.3
9.6
9.7
Public administration
5.5
5.4
5.3
5.3
5.2
Education
5.9
5.8
5.7
5.6
5.5
Health
1.2
1.2
1.2
1.2
1.2
Domestic services
1.5
1.5
1.5
1.5
1.4
Other services
4.3
4.2
4.2
4.2
4.1
7.0
5.2
5.0
5.2
5.8
100.0
100.0
100.0
100.0
100.0
4 300
4 672
5 110
5 640
6 291
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Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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sector will often not take much. This makes the Zimbabwean case different from
that of many failed states. A good example of revitalisation is the significant growth
in the tobacco and cotton sectors. Although Zimbabwes reconstruction should be
broad-based, including a wide range of agricultural and non-agricultural subsectors,
it makes sense in the framework of this project to focus first on basic food crops
that require minor investments, such as maize and extensive livestock production.
Reaching past production and productivity levels in these sectors would enable
Zimbabwe to reach food autonomy. Other crops, such as small grains (irrigationsensitive) and poultry (capital-intensive), will follow rapidly once the basic conditions
have been established.
The rural market economy collapsed because of the economic crisis, as well as constant
interventions by the state and donors. This led to the collapse of input and output
markets and efficient price-setting mechanisms, among other things (Esterhuizen,
2010). It is vital for Zimbabwe to re-engage with development. Both government and
donors have to shift from an assistance-aid approach to a developmental one. This will
require a rethink of current measures and policies.
As the following chapters argue, several issues are hampering this shift and the
subsequent initiation of a solid, positive growth path for both agriculture and
the overall economy:
The lack of a relevant and well-defined policy and institutional framework, leading
to an ill-defined overall development strategy and unstructured institutional entities
(parastatals, for example) and arrangements (including contractual arrangements)
(Kapuya et al., 2010);
Given such challenges, it becomes important to identify how the government has used its
political resources in an attempt to address constraints in the agricultural sector. Against
this backdrop, the political economy can be examined to assess the policy framework that
led to and presently has to address the constraints in the sector.
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Chapter 3
The political economy of the agricultural sector
and post-crisis reconstruction
Agricultural reconstruction and development are seen as key factors for economic recovery
in many post-conflict and post-crisis countries, including developing countries such as
Zimbabwe. Unfortunately, recent interventions in the agricultural sector have been of only
limited effectiveness, notably in sub-Saharan Africa. Two success stories of agricultural
recovery that could be identified were Europe and Taiwan in the post-World War II era,
and were used as input to the Post-Conflict Reconstruction Model (see Box 3.1) (Giordano,
2011). Some intervention principles implemented in these case studies may need to be
rediscovered in the Zimbabwean context in order to achieve the same level of success.
Box 3.1: Post-Conflict Reconstruction Model
The Post-Conflict Reconstruction Model is a recently developed framework drawn
from international experiences in post-conflict economic recovery. Broadly, the model
proposes to rethink the state-building approach and assumes the need for specific
elements to address the recovery process of fragile and/or post-conflict states.
The critical thinking provoked by the model is how to design practical measures
i) to overcome the weaknesses and inability of the state; and ii) to carry out the task set
by the international community to make foreign assistance more effective under a set
of aid instruments (i.e. humanitarian aid and budgetary support), without overtaking
the state in fulfilling state prerogatives (Giordano, 2011).
The model highlights the determinants of two historical success stories in Europe
and Taiwan after World War II. It compares them to the global principles applied by
development partners when intervening in such situations. This approach allows the
identification of gaps in development partners strategies, which need to be bridged for
agricultural development to play its full role in post-conflict economic recovery. These
gaps match some but not all of the shortcomings identified by the recent literature on
agricultural support in post-conflict countries, especially in sub-Saharan Africa.
According to Giordano (2011), the OECD Principles for Good Engagement can be applied
in fragile states with reference to the post-World War II Marshall Plan for Western Europe
and Japan and the Joint Commission on Rural Reconstruction (JCRR) plan for Taiwan,
to analyse a countrys post-conflict and post-crisis development process. The Marshall
Plan, on the one hand, owed its success to a number of favourable conditions, which
included the fact that relief aid and development measures were being implemented at
the same time, backed by financial support that was matched dollar-for-dollar with local
contributions. The post-war governments in Europe were strong enough to drive their own
economies. They owned utilities and had sound industrial policies. In addition, the Plan
had a regional rather than a country-specific approach. The JCRR plan, on the other hand,
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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In Zimbabwe, basic sectors such as nutrition, health and capacity building are heavily
complemented by donor aid and international assistance. Nonetheless, the still relatively
well-developed structures that remain, the stabilisation of the domestic economy since
the introduction of the United States dollar, and the stable political situation after 2009
present opportunities for a possible recovery that is underpinned by a strengthening of
the state, renewed investment, and a potential initiation of a sustainable development
path. Table 3.1 outlines and compares the characteristics of the Zimbabwean situation to
the foundation principles that established successful agricultural and economic recovery
in Europe and Taiwan, the OECD Principles of Good Engagement in Fragile Situations,
and the situation in Zimbabwe. The chapter then develops each of the retained principles
in the framework of Zimbabwes agricultural reconstruction.
Policy framework
Context
Table 3.1: F
eatures of World War II states: Scope for Zimbabwes agricultural
recovery interventions
OECD Principles of
Good Engagement
in Fragile Situations
Information
Take context as a
starting point
Poor statistical
systems
Politically stable
Politically stable
Politically unstable
Democratic
government and
governance
Strong democratic
government
Strong
undemocratic
government
Focus on state
building as the
central objective
Political will/social
contract
Political will/social
contract
Political will
Human and
institutional
capacities
Strong capacities
Low capacities
No safety nets/high
poverty rates
Macroeconomic
reforms and
structural
transformation
Macroeconomic
reforms and
structural
transformation
Macroeconomic
reforms, but
awaited structural
transformation
Lack of
macroeconomic
reforms and
awaited structural
transformation
Country-owned
strategy
Country-owned
strategy
Country-owned
strategy
Macroeconomic
reforms and
partial structural
transformation
Industrial policies
Four-year plans
(19531968)
Poor development
strategy/no
industrial policies
Integrated
agricultural policies
Integrated
agricultural policies
Integrated
agricultural policies
No integrated
agricultural policy
Subsidies acting as
safety nets
General features
The JCRR
Information
Information
Political stability
Lack of democratic
government and
governance
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Principles of action
Assistance
OECD Principles of
Good Engagement
in Fragile Situations
Multi-year
approach
Multi-year approach
Year-on-year
approach
Regional approach
Country-based
approach
Donor/recipient
consensus
Donor/recipient
consensus
Felt needs
approach
Recognise the
links between
political security
and development
objectives
No donor/recipient
consensus
Funding matched by
recipient
Funding matched by
recipient
Funding matched
by implementers
Funding not
matched by
recipient
Donor
One donor
One donor
Agree on practical
coordination
mechanisms between
international actors
Multiplicity of
donors coordinated
mainly around
emergency aid
Humanitarian aid
and development
Humanitarian aid
combined with
development
Humanitarian aid:
Felt needs, joint
evaluation
Humanitarian aid
little development
Technical assistance
Technical assistance
Technical
assistance
Little technical
assistance
Private sector
Projects/private
sector support
included in
development plan
Projects/private
sector support
included in
development plan
Budget support
with conditions,
tied aid
Jointness Principle
Limited Jointness
Principle
Jointness Principle
NATO*
United States
protection (mutual
security)
General features
The JCRR
Multi-year approach
Multi-year approach
Regional approach
Prioritise
interventions/avoid
pockets of exclusion
(aid orphans)/
promote nondiscrimination as a
basis for inclusive and
stable societies
Lack of private
sector engagement
No debt relief, no
budget support,
tied aid
Parallel processes,
no alignment
Weak SADC
protection but
strong local defence
force capacity
3.1 Context
3.1.1 Lack of statistical information
Within the context of post-conflict reconstruction, both the Marshall Plan and the JCCR
were built on solid and reliable statistical information that allowed for proper planning,
policy design and follow-up.
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With respect to Zimbabwe, one important difficulty facing researchers carrying out
analytical work and policy-makers making policy decisions centres on the availability and
quality of datasets. There has been a significant deterioration in the national statistics
system in recent years, with brain drain over the last decade adversely affecting national
capacity in this area, while the shrunken fiscal revenue base has failed to cover even
the recurrent costs required to support data collection efforts (UNDP, 2008). Although
ZimVAC, the Famine Early Warning Systems Network (FEWS NET) and WFP/FAO/GIEWS
Crop Forecasting Committee assessments have rendered assistance in the agricultural
sector, much data is quite simply no longer being collected. Where it is being collected, it
is of limited quality, is not analysed, and increasingly over recent years, on the grounds
of national security is no longer being made available or is used (and manipulated) to
suit government purposes (UNDP, 2008).14 An important concern, for example, has been
the failure of government to carry out a comprehensive land audit (ZimOnline Investigation
Team, 2010).
It has become clear that a significant effort is required to update national databases.
Reliable baselines are a prerequisite for planning for national and sectoral recovery, and
form the basis upon which targets can be set and progress towards these targets monitored
and evaluated. Seen in this light, it would be in the interest of the government as well
as of the private sector and (national or international) development partners to address
this constraint as quickly and as comprehensively as possible. The current framework of
operation between the government and non-state actors leads to donor initiatives (save for
perhaps the WFP/FAO/GIEWS crop assessments) being planned and implemented outside
government.15 This explains the difference between government estimates and FEWS NET
projections of food security needs.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Democratic Change (MDC) 15 years later (GNU Watch Zimbabwe, 2011). Between 2000
and 2008, political strife between the MDC and the government of the Zimbabwe African
National Union Patriotic Front (ZANU PF) led to worsening political and socio-economic
conditions (Mapuva, 2010) (see Table 3.2).
Table 3.2: Timeline of Zimbabwes political processes16
Date
Notes
Outcomes
18 April 1980
19821985
December
1987
September
1999
February 2000
June 2000
March 2001
2002
15 September
2008
January 2009
16 Through the enactment of ZIDERA, Zimbabwes access to finance and credit facilities was effectively destroyed. ZIDERA empowers
the United States to use its voting rights and influence multilateral lending agencies, such as the IMF, the World Bank and the
African Development Bank, to veto any applications by Zimbabwe for finance, credit facilities, loan rescheduling and international
debt cancellation.
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Since 2009, Zimbabwe has achieved a relatively peaceful and stable political transition
through a political settlement called the Global Political Agreement. This subsequently led
to the formation of the GNU, which consists of ZANU PF and the opposition MDC.17 Against
the backdrop of Zimbabwes poor human rights record, with restrictions on property
rights, press freedom, economic freedom and political freedom, the GNU is a transitional
arrangement with the objective of spearheading the implementation of political, economic
and constitutional reforms that address these issues. However, the GNU has made limited
progress in changing the countrys fundamentals, owing to protracted negotiations on
political and economic policy reforms. There are still visible weaknesses in accountability
systems and repressive legislation that limits democratic opposition, free media and civil
societys ability to express the voice of the public. Zimbabwes political leadership has failed
to address pertinent issues that caused the vicious cycle that links corruption to poverty
(Transparency International, 2009).
Tensions exist within the GNU between ZANU PF and the MDC, with entrenched ideological
differences causing the slow implementation of policies. The GNU clearly lacks a common
vision, including on options for an economic recovery path, and the policy differences
between political parties have compromised the spirit of political stability (Mapuva,
2010). Currently, ZANU PF is advocating for early elections, citing the failure of the GNU
to yield cohesive governance, while the MDC is arguing that elections should follow the
implementation of a new Constitution that would ensure free and fair polls.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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2010),19 it is also supported by the fact that the country has been unable to implement
formulated policies effectively.
Besides the agricultural policy processes and implementation (which will be detailed later
in this chapter), the land and land resettlement policy processes are particular examples
of these governance problems. Due to the complexity and scope of land redistribution,
a number of committees within Cabinet, the Politburo and the office of the Vice-President
have handled the land resettlement programme:
(i) In the Politburo, although it is based in Cabinet, there is a secretary for land issues.
(ii) There is a Ministry for Lands, Land Reform and Rural Resettlement, which includes
a National Allocation and Redistribution Committee that deals directly with land
occupation and resettlement at district level.
(iii) In the Vice-Presidents office, there is a Cabinet Committee on Resettlement and
Rural Development and a National Land Acquisition Committee.
Ofce of the President
Vice-President
Cabinet
Politburo
Foreign Minister
Cabinet committee on
Resettlement and
Rural Development
National Land
Acquisition Committee
Conrmation
Working Party of
Permanent
Secretaries
Minister of State:
Land Reform and
Rural Resettlement
Director Ofce
of the
Vice-President
Inter-ministeral Committee
on Resettlement and
Rural Development
Permanent Secretary
Ministry of Local
Government
Offer letter
issued for
land
Approval
National Command
Centre Committee
Provincial Administrator
Provincial Land
Identication
Committee
Technical
subcommittee
evaluation
Agricultural Land
Settlement Board
Recommendation
Land applicant
District Administrator
Short list
Submission
District Land
Identication Committee
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The Cabinet Committee has been in place since at least 1985. Its role, however, remains
unclear when the various committees, working parties, task forces and command centres
are added to the organisational structure for land identification, acquisition and settlement
(see Figure 3.1). This complexity created difficulties in defining responsibilities for land
policy and implementation, making it hard to decipher the actual policy decision-making
process. As a result, most decisions are taken outside the confines of formal government
institutional processes (UNDP, 2008).
Against this backdrop of institutional vagueness, over-centralisation and a lack of
coordination of the programme appeared (Rukuni, 1994). In February 1993, and especially
after 2000, the Comptroller and Auditor-General reported that programme implementation
had suffered, owing to interference by politicians, the overtaking of its implementation
by independent formations/individuals, and the lack of government capacity to coordinate
implementation (UNDP, 2008).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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to governance are not free from political interference. Because policy reforms are approved,
monitored and directed by politicians according to their own interest (as opposed to the
public interest), the weakness and, therefore, failure of the policy framework is mainly
attributed to the intrusion of political interests (Mapuva, 2010).
A clear shift in ideology and political will may be the first step towards a sustainable
recovery process for Zimbabwe. This could be modelled along the structure of the JCRR,
which eliminated unnecessary political interference and preserved the autonomy and
flexibility of the technocrats that oversaw the development and implementation of policies
(Giordano, 2011).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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the restrictive political environment.22 Most NGOs are only undertaking humanitarian aid,
mainly channelled outside government structures. Lastly, the private sector once the
strength of Zimbabwes economy has been weakened by the economic collapse and
direct political intervention into the private sphere.23
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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(ii) The second phase, 19801989, was the first decade after the country attained
its political independence and the economy was still strongly state-led.
(iii)
The third phase, 19902000, ushered in reforms through a structural adjustment
programme as well as through trade regimes, for example under the World Trade
Organization.
(iv)
The last phase, 20002008, was a period of weak and ad hoc state intervention.
The economy was highly open regionally, as it also implemented the gradual tariff
reductions under the SADC Free Trade Area. As the country was then in a political
and economic crisis, the government intervened through price and foreign exchange
controls, among other protectionist measures. Table 3.3 provides a short history of
Zimbabwes industrial and trade policies in these periods.
Table 3.3: Zimbabwes economic policy framework over time
Pre-independence
19801989
19902000
20002008
20092011
Policies
Strong state-led
Strong state-led
Import
Infant industry
substitution
industry
Protection
White enclave
protection
IMF/World
Bank-led
ESAP
Tight controls
Export
Foreign
Trade
through tariffs
exchange
allocation
Growth with
equity
promotion
liberalisation
Financial
deregulation
Export
retention
schemes
Cost recovery
World Trade
Organization
agreements
Weakened state
attempting to
regain control
Highly open but
mixed economy
Ad hoc state
intervention
Tight foreign
exchange control
regulations
(initially)
Price controls
Import
liberalisation
Economic
Partnership
Agreements
(initialised)
Weak state
attempting to
liberalise markets
Ad hoc
intervention
Dollarisation of the
economy
Liberalisation of
almost all sectors
(goods and
services)
Collapsing
Slow recovery
Free market
ideology
Liberalisation
of almost all
goods and
services
Strong/vibrant
Gradual
disintegration,
deindustrialisation
and deagriculturalisation
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However, in the current policy phase (20092011), under economic pressure from the
countrys disastrous situation and foreign concerns, the economy has progressively been
restructured and liberalised. This follows autonomous, bilateral and multilateral efforts
to liberalise the economy and integrate Zimbabwe into the world economy (Mudzonga,
2009a). Major changes include the following:
The official adoption of the United States dollar in March 2009 reduced annual
inflation to 3% in 2010, enabling the restoration of economic stability (Government
of Zimbabwe, 2011);
The economy opened up both locally and regionally with continuing, albeit gradual,
tariff reductions under the SADC Free Trade Area.
RBZs quasi-fiscal activities were curtailed, and the central bank was restricted to its
core monetary policy functions on the advice of the IMF.
However, beyond the political crisis, the state is still very weak and measures are being
implemented only in part, owing to the lack of financial and human capacities but also
to the absence of genuine motivation for transformation among dominant stakeholders
(Mudzonga, 2009a). Interventions remain ad hoc in nature. In addition, the growth in the
overall economy was projected to slow to 2% from the initial government projection of
7.7%.24 The modest economic growth has not resolved the ever-increasing unemployment
problem, the deepening poverty and the lack of delivery of social services (Makumbe, 2009).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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(ii) Social protection: Food and humanitarian assistance, and strategically targeting
vulnerable sectors such as education and health; and
(iii) Stabilisation: Implementing a growth-oriented recovery programme that fosters free,
deregulated markets and restructured parastatals; increasing capacity utilisation in all
sectors of the economy; creating jobs; and ensuring adequate availability of essential
commodities such as food, fuel and electricity. A key area in the STERP has been
rehabilitating the collapsed social, health and education sectors and addressing the
adequacy of the water supply.
Within this policy framework, Zimbabwes economy experienced 5% growth in 2009
and is expected to continue its recovery in the short to medium term. The 2010 GDP
growth rate, initially projected to reach 7%, was only about 2.2%, given the reluctance
of the international community to extend financial and budgetary assistance to
Zimbabwe (Development News, 2010). Western powers, particularly the United States
and the European Union, were cautious because of the slow implementation of political
and economic reforms, including the restructuring of parastatals and the RBZ, the
implementation of a new democratic Constitution, and the abolition of draconian
legislation such as the Access to Information and Protection of Privacy Act and the
Public Order and Security Act, which curtail media freedom25 and the freedom of speech
and expression, respectively.
In Zimbabwes post-crisis scenario, given the emphasis on national ownership and the high
degree of dependence on aid flows, Zimbabwe must take the initiative with the assistance
of donors to define its own priorities, design its own development programmes, and
build an institutional structure to improve the effectiveness of aid significantly. As such,
Zimbabwes responsibilities would be to exercise effective leadership over its development
policies and strategies, and to coordinate development actions in terms of time and
capacity in a participatory and inclusive manner. More specifically, according to UNDP
(2008) recommendations, the government would have to:
(i) Create national development plans, such as an agricultural and food security policy
and a Poverty Reduction Strategy Paper, with clear strategic and budgeted priorities.
(ii) Develop a performance assessment framework jointly with donors and agree on a
single set of conditions derived from these two policies.
(iii) Translate a Poverty Reduction Strategy Paper into a Medium-Term Expenditure
Framework, with annual and multi-year budgets to facilitate aid predictability.
(iv) Strengthen Zimbabwes institutional structures, systems and procedures to facilitate
the alignment and harmonisation of donor support, so that they can synchronise
their pledges and disbursement cycles with national planning and budgeting cycles.
25 Others include the Broadcasting Services Act and the Censorship and Entertainment Act.
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Zimbabwe currently faces two major problems. First, it does not have an agricultural and
food security policy; and second, the country has not integrated its policy reflections within
a broader overall economic development framework. This largely explains why the country
has resorted to the adoption of ad hoc measures.
Zimbabwe has been attempting to create an agricultural policy since 1995. To date, there
have been four attempts at a national agriculture policy framework, but none has been
adopted or implemented so far. These attempts include:
(i) Zimbabwe Agricultural Policy Framework and Strategy, 19952020;
(ii) National Agricultural Strategy Framework, 20052035;
(iii) Agricultural Mission Statement Strategy Framework and Action Plan, 20072011; and
(iv) Zimbabwe Regional Agricultural Policy draft (also known as the Nyanga Document).26
Although the objectives of the attempted policies remained the same, shifts in international
relations, political priorities, the economic environment and land ownership have made
adoption difficult. The first three draft attempts were seen as not comprehensive, and the
processes of policy formulation and implementation faced several critical problems. First,
there has been widespread political interference, which has remained a major problem
as policymakers-cum-politicians drew political benefits from the policy implementation
process. Food aid and agricultural input programmes were implemented on a political basis
(Makumbe, 2009). Another important problem is that government has since adopted a
top-down approach, in which stakeholders have been marginalised in the development of
policies and strategies to address economic and political problems (Mano, 2001). Ministers
appear to have heavily influenced the policy process. The Agricultural Minister remains the
de facto policymaker, enabling him to disregard consultative processes. The latest Nyanga
Document, developed with national and international expertise (including from the FAO)
and based on a participatory process, seems to be neglected. Thus, the current processes
appear not only to lack inclusivity, but also to disregard technical information and advice
from experts. They also apparently fail to capitalise on local and international technical and
financial support.
Commitments to long-term policy priorities for production were overridden by short-term
consumption needs. In the absence of an agricultural and food security policy, Zimbabwe is
in short-term survival mode, with emergency strategies of subsidies, food aid imports and
relief efforts, at the expense of a long-term development strategy. The 2000 Government
Input Scheme, the 2004 Productive Sector Facility introduced through the RBZ, and the
Agricultural Sector Productivity Enhancement Facility (introduced in 2005 through the RBZ)
were designed as short-term stopgap measures financed from the mass printing of the
local currency (Hanke, 2008).
26 This will be discussed further in Chapter 3.
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Given that Zimbabwe has neither an agricultural and food security policy nor an industrial
and trade policy, the country inevitably lacks an appropriately integrated agricultural
strategy. Although no fixed rule exists, particularly with participatory processes,
international experience suggests that the average time to develop an agricultural policy
is 20 months (UNDP, 2008). However, given that the FAO and relevant stakeholders have
already developed a comprehensive policy draft on agricultural policy related to the SADCs
Regional Agricultural Policy, this exercise may well take less time.
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subsidised input interventions has arguably been to create dependency and significantly
distort markets. Concerns have been raised about their design, as evidenced by their lack
of production impact at national level (World Bank & Government of Zimbabwe, 2010).
Suggestions have been raised about diversifying targeted and well-designed subsidies to
more economically regenerating activities, involving active private sector participation.
3.3 Assistance
3.3.1 Zimbabwes short-term, year-on-year approach
In the context of the Marshall Plan and the JCCR, a multiple-year, long-term approach
to development assistance was followed. Development assistance lasted for several
years through diverse mechanisms. Even when the countries gradually took on their
own assistance, they continued to benefit from funds generated by past aid with the
establishment of specific economic and social development funds, supplied by both the
country and the donor(s). Where economic assistance lasted only a certain number of
years, these funds provided the necessary resources to continue. The funds were, however,
implemented in a way that neither created dependency nor constrained local/national
economic development (Kao, 1967).
In the Zimbabwean case, however, assistance was not only relatively low, it was also only
implemented on a short-term, year-on-year basis. These issues are related and associated
with the countrys international isolation. Zimbabwes aid decreased to US$150 billion in
2001 and US$190 billion in 2004, before rising again to pre-2000 heights of US$592 billion
in 2008 (Woods, 2005; OECD-DAC, 2010). This is relatively low compared to Senegals aid
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budget of between US$400 billion and US$800 billion for the last 20 years. The donors aim
to meet the production gap in order to alleviate food shortages, as assessed on a yearly
or seasonal basis. These are only emergency initiatives. As is the case with governments
agricultural measures, the current ad hoc approach of the donors to food aid and relief
efforts suggests that the donor sector also lacks an effective and sustainable long-term
development strategy. Assistance is being criticized for a lack of effort and ideas about
evolving from the current short-term emergency aid approach towards long-term
development strategies (Sukume & Guveya, 2009).
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donors. On the other hand, although to different degrees, the anti-government stance
taken by Western governments against Zimbabwes regime, mainly due to alleged human
rights abuses and political persecution, has created a political impasse that has affected
the manner of and approach to delivering aid. Decisions within these two different spheres
are made separately, and the implementation of the activities is disjointed.
As a result, international aid is channelled outside government structures and delivered
directly to communities. Aid activities are also implemented separately and have different
targets. Donors focus only on the traditionally communal lands and previously resettled A1
farms, whereas the government mainly targets the newly resettled A2 farms.28 This results
in a parallel system, with government and donors purposely acting separately.
The government views international aid organisations as representing anti-government
interests, mainly because of the political interests they represent.29 The government
therefore introduced the NGO Bill in 2004, which, though meant to create an enabling
environment for NGOs, was widely condemned as an institutional barrier curtailing civil
society. 30 Although NGOs have formed a self-regulatory, coordinated framework of
engagement in agricultural and food security fora, a clear lack of consensus is apparent.
This is especially reflected by the marginal participation of government in NGOimplemented projects and agricultural fora.
It can indeed be noted that the government and donors or the assistance community
do not interact or communicate with each other. The FAO-coordinated Agriculture
Coordination Working Group could, for example, have promoted joint interaction.
Although the government participates in this working group (and others), it sees it mainly
as an information-gathering tool, and does not engage effectively.31 The European Union,
in the framework of the Multi-Donor Trust Fund (MDTF), is looking into setting up a multistakeholder strategic reflection group, including the government as an effective participant.
This is yet to be implemented.32
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to be used mainly in agriculture, mining, energy and tourism. A grant of US$950 million
is also being discussed with China.34 Other donors are SADC, Botswana and South Korea;
some are part of the governments Look East Strategy.
These groups are not exclusive, as several donors contribute to different groups. The European
Union, for example, contributes to the United Nations cluster and the MDTF. Many,
as detailed in Chapter 4 contribute to a group but still implement their own projects
bilaterally.
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progress could be made if donors and the government engaged in long-term planning,
ensuring a shift from relief to development, and implemented a genuine demand-driven
approach. This could include, for example, a country contribution to guarantee a high level
of ownership, and follow a process that supports the development path of the region.
Efforts are needed to address the institutional barriers to such a situation. First, related
to the previous two sections on Context and Policy, there is a need for the government
to engage in strategic reflection and broad restructuring. Second, renewed engagement
between development partners and the government is required. Although the trust fund
model and a multi-stakeholder strategic reflection group, which includes the government
as an effective participant, represent progress, they lack a long-term perspective, have a
limited strategic orientation, and may not have proof of buy-in by the government and
other local stakeholders.
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limited extent. The current operational framework of aid and humanitarian support seems
to acknowledge these links with development insufficiently.
In response to these issues, new approaches have been developed over the past two years
in order to, on top of the humanitarian assistance, revive household production and the
rural economy:
Donors, mainly coordinated through the FAO, have started delivering aid for food
and, mainly, agricultural inputs as monetary vouchers, trying to revitalise rural market
linkages.
Several NGOs, including the GRM consortium (see Chapter 4), have implemented
renewed approaches focusing on market development and value chain reconstruction.
Market studies and investment studies, which focus on the areas that are prioritised
under the CAADP process (by the government of Zimbabwe), the Zimbabwe Agricultural
Sector Assistance (ZASA) programme (by the World Bank and MDTF), and the USAID
strategic investment planning documents.
Although some donors have continued to provide input aid, they now focus more on
the poorest and most vulnerable elements of society, with the provision of vaccines,
prophylactics, antiretroviral drugs to fight HIV/AIDS and, crucially, food. Limited funds
have also been channelled towards specific and well-identified local community-based
recovery initiatives, as well as in support of work in the areas of governance, democracy
and human rights.
In addition to these renewed approaches, Zimbabwe needs a paradigm shift and a
transformation towards sustainable agricultural production that frees the country from
aid dependency. On the one hand, although the United Nations cluster, particularly the
FAO, engages in such reflections regarding agriculture, its activities have been mainly
oriented towards the organisation and coordination of emergency assistance. On the other,
the MDTF group, promoting a more strategic and long-term approach to development,
has been criticised for limiting its activities to conducting preliminary studies, without
directly engaging in development.35 This being said, although donors have to engage in
such approaches, it is also necessary for the government, inclusively, to develop its own
long-term strategies and policies. The European Union is implementing a multi-stakeholder
strategic reflection group in the framework of the MDTF, which includes the government
as effective participant; this is a welcome initiative (a Programmatic MDTF is being created,
linked to the African Development Bank (AfDB)).
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Technical assistance from international partners mainly involves capacity and programme
support. For instance, an IMF mission visited Harare in June 2010 to review recent economic
developments and assist the government in the preparation of the 2010 mid-year budget
statement. Another example is the FAO technical support to the agricultural draft policy,
which has not been adopted. In addition, international technical assistance in various
sectors has improved the timeliness and quality of data reporting and is contributing to
progress on economic policies.
However, such technical support remains very limited, in view of three factors. First, there
are political and ideological differences between the government and donors, which
limit direct engagement. Second, Zimbabwe remains in a humanitarian rather than a
developmental, and more technical, mode. Third, there is a lack of long-term, well-defined
strategies and policies, particularly on agricultural and economic development.
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strategies should focus on revitalising the private sector. Thereby avoiding (partly) the
governance/government issues, it will facilitate the shift from assistance to development.
In order to enable this shift, development cooperation could assist by providing technical
assistance to the government as well as NGOs, civil society and private sector organisations.
Once again, this can only happen if the prerequisites detailed in the previous sections
are met.
3.5 T
he need for a well-defined, holistic approach, including
government and donors
Using the Post-Conflict Reconstruction Model, four major conclusions can be drawn about
the reconstruction of Zimbabwe:
(i) The first is contextual, relating to the need for political stability and a democratic
government and governance system, backed up by political will and human and
institutional capacity.
(ii) The second is related to the policy framework, emphasising the significance of
well-established, country-owned macro and sectoral policies. It also stresses a
broad approach, highlighting the integration of agricultural and industrial policies.
(iii) The third underlines the importance of aid that is well-organised, long-term and
matched by and aligned with the recipients strategies.
(iv) Although the importance of humanitarian aid is not denied, it has to be combined
with a developmental approach, requiring technical assistance and an unconstrained
private sector.
Although significant progress is being made, particularly since the establishment of the
GNU, many of the abovementioned conditions are not being met in Zimbabwe. First, this
draws attention to the rather fragile situation evolving in Zimbabwe. The growth expected
in agriculture during the 2010/11 season might thus be a one-off, and its impact on the
evolution of Zimbabwes socio-economic situation might be limited. The fundamentals
for a solid, longer-term reconstruction are yet to be reinforced. Second, as detailed
in this chapter, these different elements (categorised in the four groups) are not only
essential to Zimbabwes reconstruction, but they are also highly interconnected. Indeed,
many of the issues detailed, including those affecting or caused by donors, are related
to the broader governance, socio-economic and political situation. In order to engage
effectively in post-crisis reconstruction, these prerequisites will have to be addressed. Third,
it stresses the many initiatives still to be implemented for Zimbabwe to follow a longterm, sustainable development trajectory. In order to build on the progress made, a more
detailed identification and description of the projects and initiatives being implemented
are presented in the next chapter.
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Chapter 4
Actors and projects: Coordination and alignment
To complement Chapter 3 on the post-crisis reconstruction of Zimbabwes agricultural
sector, Chapter 4 provides an in-depth description of the institutional environment and
the different programmes and projects implemented in Zimbabwes agriculture and
food security sectors, outlining the current structure of the sectors. In the first section,
the chapter elaborates on all the stakeholders, how they function, and how they are
coordinated in order to respond to the countrys agriculture and food security issues.
A second section details the different projects being implemented.
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Government of Zimbabwe
ZANU PF
OCHA
WFP
Politburo
FAO
UNICEF
RBZ
UNHCR
UNDP
MoAMID
Agritex
Research
and
Specialist
Services
Irrigation
Services
Veterinary
services
Mechanisation
Donors
Education
and
training
Services
MDTF
Economics
and
Marketing
Parastatals
Tobacco
Industry
Marketing
Board
Cold
Storage
Company
Tobacco
Research
Board
Grain
Marketing
Board
Agricultural
and Rural
Development
Authority
Agricultural
Marketing
Authority
Working
groups
Agri
Bank
Pig
Industry
Board
Regional
organisations
Private
Companies
Research
institutions
Farmers Unions
ZCFU
Local NGOs
ZFU
NGOs
CFU
International
NGOs
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Many of the public and government projects were decided in the Presidency and
implemented often at own cost by the parastatals and local government departments.
As a result, the parastatals accrued large debts. The increasingly cash-strapped government
then relied on the RBZ to fund state programmes directly, mainly through the printing
of currency. The RBZ, therefore, became the de facto economic manager of the country
in every ministry, and the implementing agency of agricultural policy.44 RBZ projects in
the agricultural sector included the provision of food, subsidised inputs, free fuel and
mechanisation equipment (see later in this chapter for detailed lists).
Box 4.1: Ministry of Agriculture, Mechanisation and Irrigation Development
MoAMID has seven departments. Economics and Marketing is concerned with resource
use, pricing policies, the marketing of agricultural production, and development and
trade. The Department of Agricultural, Technical and Extension Services (Agritex) is
responsible for crop and livestock assessment. Research and Specialist Services
carries out agricultural research. Veterinary Services is for livestock and disease
control. Irrigation Development is a new department, mandated to design and
implement irrigation to support especially the new farmers. Mechanisation, another
new department, is tasked with sourcing agricultural mechanisation equipment
and providing technical services. Education and Training provides relevant technical
and professional training and information in the science and practice of agriculture.
Besides the six departments, MoAMID runs seven parastatals:
Tobacco Industry Marketing Board: The Board is responsible for marketing tobacco
through the dual marketing system, that is, the contract and auction systems.
It approves buyers and controls the auctioning.
Tobacco Research Board: The Board is a statutory body mandated to direct, control
and conduct research on tobacco. It undertakes both long-term research and shortterm advisory and support services on request from growers and merchants.
Cold Storage Commission (CSC): The CSC has the only slaughter facilities approved
for exports to the European Union. Until the disruptions in beef production due
to the land reforms, it used to process all meat exported to the European Union.
There are no European Union exports anymore, and the depletion of the national
herd has significantly reduced CSC operations.
Grain Marketing Board (GMB): The GMB is the central marketer of grain and
a state food security reserve. It is sometimes used as a distribution channel for
state subsidies. It plays a central role in the governments market interventions,
especially in producer prices.
Agribank: The government-owned agriculture finance house is currently
financially strained.
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Agricultural and Rural Development Authority: The Authority runs farming projects
that use agriculture as a tool for rural development. It long relied on donor
funding, but this has since dried up for political reasons. Facing viability problems,
the Authority has reduced its operations and retrenched a large staff complement.
Agricultural Marketing Authority: The Authority has recently been reintroduced
after being disbanded in 1993. It is to regulate and supervise the marketing of
agricultural produce to ensure fairness in the sector. It is still acquiring offices
and equipment.
Pig Industry Board: The Boards mandate is to develop the countrys pig industry
from breeding to marketing, and its major responsibility is to support smallholder
farmers adequately.
Source: Authors.
Since 2009, with the enactment of the GNU and the forced liberalisation of the economy
(see Chapter 2), these institutions have been in a process of restructuring. Institutionally,
besides the official adoption of the United States dollar in March 2009 (which reduced
inflation) and opening up the economy both locally and regionally, major restructurings
include:
The amendment of the RBZ Act to outlaw the quasi-fiscal activities, namely the
funding of projects related to the dominant party and other expenditures through
public funds and in the name of government (Ploch, 2010); and
The restructuring of parastatals, including the GMB, to focus on their viable core
business (IMF, 2009).
However, beyond the political crisis, the state is still very weak and measures are
being implemented only partially, owing to a lack of financial and human capacity and
the absence of genuine motivation for transformation among dominant stakeholders
(Mano, 2001). For example, the government still does not have an agricultural policy
(see Chapter 3). In addition, some state interventions continue: the GMB, ordered by the
President, acquired maize at much more than the market price (at US$275/mt), destabilising
the markets and putting itself under financial constraints, as it was impossible to retail
the maize at a profit.
These incomplete reforms, at least according to the international community (ZimOnline,
2010), have major consequences. The first is an extension of the international sanctions
against Zimbabwe. With the economy and the government, including the MoAMID, being
resource-strained and not receiving any budgetary support, the private sector is not reviving
and very few public programmes are being rolled out. The agricultural and food security
sectors still have to rely on donor funds. The second is a poor working relationship between
the government and donors or the development community. ZANU PF is very hostile
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towards the donors; not only are projects not implemented together, but the government
also sometimes limits donor activities. In 2008, the then ZANU PF-led government banned
Western-sponsored NGOs (Otto, 2009). Earlier in 2011, the MoAMID prohibited donorsupported information services from carrying out harvest estimates (only the governments
estimates are allowed and only these estimates will be used).45 Because of this strained
relationship, donors have been reluctant to channel aid through government departments.
Instead, they work directly with NGOs and farmers unions to implement their projects,
logically questioning the relevance of cooperation and alignment as driving principles in
such a situation.
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46 www.mlwg.co.zw
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Gardens Working Group: Formed in 2004, this group is chaired by the FAO.
Its purpose is to provide a forum that promotes dialogueon current and
emerging issues in rural and urban gardens and to facilitate the exchange
ofimprovedpractice and strategic information and experiences, so as to
ensure closer collaboration and networking between partners in the area
of household gardens. Gardens are sources of nutritional diversity and food
security. The group comprises representatives from donor agencies, local
and international NGOs, United Nations agencies, government (MoAMID and
Local Government), academics, researchers and interested individuals.It meets
once a month to share experiences and sound practices.
Cash Working Group: More donors are now using vouchers and cash transfers
instead of giving free inputs. NGOs involved in the cash projects meet to share
lessons and coordinate. This group comprises only NGOs.
Source: Authors
Although the United Nations framework significantly enhances the structuring and
coordination of emergency help, several issues do appear. First, it coordinates only part
of the assistance. Several donors with different political/ideological stances and assistance
practices have decided not to channel their assistance through the United Nations
framework. Second, it only coordinates and is mainly oriented to emergency assistance.
There is a lack of joint programming between donors. Also needed is a constructive
reflection on more strategic, long-term engagements that would allow a shift towards
more development-oriented approaches. Third, although the government takes part in the
different working groups, it does not contribute effectively, making the working groups
a gathering of donors, bilateral and multilateral donors, and NGOs.
In 2008/09, led by the World Bank, development partners and multilateral agencies in
Zimbabwe agreed on an approach to strategic analysis that anticipated re-engagement
and renewed cooperation with the government (World Bank, 2008a). This contributed to
analytical work on important development challenges facing Zimbabwe. Broader in scope,
the aim is to support the transition of the country from an aid dependent humanitarian
situation to a developmental state of recovery by supporting several themes, including
agrarian issues, social protection, infrastructure rehabilitation, economic analysis and
private sector output (World Bank, 2008a). Officially, although the government is still
excluded from the implementation of donor funds, with support from the European Union,
the MDTF should create a platform for government, donors, civil society and the private
sector to regroup and re-engage.
Chaired by USAID, the Agrarian Sector Technical Review Group, one of the five MDTF pillars,
has engaged in several studies focusing on agricultural assessments and policy issues.
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Although criticised for not having implemented effective development projects,47 it has
funded PRPs, even though they are humanitarian projects. While its stated objectives seem
complementary to those of the FAO cluster, they operate separately. Except for donors such
as the European Union, those that contribute to one48 do not contribute to the other.
Besides these two coordination entities, several donors also contribute bilaterally,
directly to implementing NGOs. There are three major reasons for donors to cooperate
bilaterally: 1) their home governments diverse stances regarding their engagement with
Zimbabwe; 2) the visibility of their work and cooperation; and 3) the implementation
of renewed approaches to reconstruction. Most bilateral assistance focuses on renewed
approaches to support development: they mainly fund market-oriented approaches, value
chain programmes, agri-dealer establishment, contract farming development, and the
like. Examples of such bilateral agreements include the SNV, which sponsors agro-dealer
promotions in communal areas. Germany, through the Federal Ministry for Economic
Cooperation and Development (BMZ), is funding conservation farming, while the Danish
and Finnish Red Cross Societies provided farming inputs for the 2010/11 season (see
detailed list in the second part of this chapter).
While certainly relevant, their individual implementation might lead to uncoordinated
activities and duplication on the ground.
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Farmers unions
Zimbabwe has three main farmers groups, as discussed in Box 3.3. Again, although well
organised, they are characterised by a dwindling capacity to influence.
The Commercial Farmers Union (CFU), grouping the previous large-scale commercial
farmers, has lost its influence in the sector. Disposed of land through the FTLRP, the CFU
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lost most of its members. Currently advocating for compensation for farms taken by
government, it has tabled proposals to government regarding the revival of commercial
farming. While mainly providing legal support for farm compensations, it is reorienting
itself towards the implementation of projects in collaboration with NGOs. In order to
access funds, some propose that the CFU should become an NGO looking after the welfare
of displaced white farmers.49
The Zimbabwe Commercial Farmers Union (ZCFU) groups mainly newly resettled farm
owners. Close to government, it is likely to become the commercial farming voice in
the near future, if it can organise itself well enough to be financially and institutionally
sustainable. With most of its members being influential in civil service, the army, the police,
the judiciary, politics and business, ZCFU occupies a powerful position, particularly as an
indigenous union with patriotic (black) members. It has a more politically acceptable image
than the CFU and appeals to pan-African ideals, but it is questionable whether the ZCFU
will position itself to lobby government. Newly reformed, it is struggling to operate and
its functions have not been fully established because of limited funding. Also, the union is
torn apart by internal conflicts.
The Zimbabwe Farmers Union (ZFU) is Zimbabwes largest agricultural union, representing
communal and previously resettled small-scale farmers. Financially very limited owing to
its base of poorer farmers, it is largely dependent on government support. Currently, given
governments financial limitations, ZFUs main support is from the European Union, related
to conservation farming, input assistance and capacity building projects. With very little
organisational, financial and leadership capacity (it has had the same president for the
last 20 years), it has always been pro-government, usually lacking an independent voice.
Box 4.4: Zimbabwes farmers unions
Commercial Farmers Union (CFU): The CFU was formed in 1905 as the Rhodesia
Agriculture Union, consisting of white, large-scale commercial farmers who were
owner-managers on private land. Until 2000, CFU had about 4000 members.
The colonial government assisted by underwriting commercial agriculture, a
preserve for white farmers, with financial assistance for research, advice, credit
and transport. During this colonial period, white farmers had a strong voice,
since the CFU had political influence through parliamentary representation (some
of their members were in Parliament). This influence continued for a while after
independence, especially from 1980 to 1985, as the then Minister of Agriculture
was a former CFU president. Severely affected by the 2000 land reform programme
(which forcibly dispossessed white farmers of their land without compensation),
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fewer than 400 CFU members still own land. Although the SADC regional court
ruled in their favour (see Chapter 3), the government of Zimbabwe refuses to
accept the court ruling. The lack of government support, depleted membership,
and reduced financial contributions have severely weakened the operations of the
CFU. Some of their more radical members have formed a pressure group Justice for
Agriculture to confront government on the issue of compensation, but they have
largely been ignored.
Zimbabwe Commercial Farmers Union (ZCFU): The ZCFU was formed in 1945 as
the African Farmers Union, later named the Zimbabwe National Farmers Union.
Membership was from the then African Purchase Land owners, with about 9500
members. These farms were small-scale commercial enterprises, on land not
demanded by white farmers. Farms measured 80200 ha, on freehold tenure.
This group had no influence under the colonial government, but started receiving
government attention after independence. In 1991, the organisation was registered
as an association, before being established as a union in 1996. Beneficiaries of the
government-sponsored post-1999 land reform, which had previously formed their
own Indigenous Commercial Farmers Union, have since dissolved their group and
joined this one. The group now has immense political influence, as it has liberation
war heroes, politicians and pro-ruling party businessmen among its members.
Zimbabwe Farmers Union (ZFU): Initially called the National Farmers Association
of Zimbabwe, the group has registered, since 1980, all rural, small, scattered
peasant and voluntary farmers associations around the country, representing
farmers in communal areas. Now having a membership of over a million, it is the
largest farmers group, consisting of communal and resettled farmers (resettled
on the village-based, small-scale plots in the 19801985 government land reform
programme). Its financial base comes from member contributions, government
and donor support, especially from the European Union.
Source: Authors
Private sector
The private sector encompasses seed processors, fertiliser manufacturers, agro-chemical
companies, agro-dealers, mechanisation and irrigation equipment manufacturers, and traders.
In the last ten years, industrial production has been below 40% (Makumbe, 2009).
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The decrease is related to the overall collapse of the economy, poor infrastructure, power
shortages and an unfavourable financial environment. A combination of the governments
contra-market interventions and reduced industrial capacity has negatively affected the
potential for recovery, especially for seed and fertiliser manufacture. For example, the
production of fertiliser fell from 365 000 mt in 2001 to 70 000 mt in 2008, while
the contribution of imports to national supplies has increased from less than 10% before 2004
to as much as 42% in 2008. The Zimbabwe fertiliser industry used to have the capacity to
produce some 560 000 mt of fertiliser (which would cover the countrys needs based on
historical usage levels) (Mhazo et al., 2006).
Zimbabwes agri-business sector was thriving before 2000, comprising several international
brand names. Since then, the sector has become increasingly dualistic. Some surviving
major entities have acquired an oligopolistic position in their subsectors (such as National
Foods in the processing subsector and AgriSeeds in the seed subsector). Most small and
medium agri-businesses closed down (or relocated), significantly reduced operations,
or were taken over by the oligopolistic ones. Recently, small, indigenous entities have
emerged to fill this gap. Table 5.5 lists private agriculture-oriented companies operating
in Zimbabwe.
The collapse of the private sector is particularly severe in the rural areas, with agri-dealers
and rural centres having shut down. The decline in the agricultural and overall economy,
combined with the proliferation of aid and assistance programmes since 2000, has
hampered private development in the rural areas (World Bank & Government of Zimbabwe,
2010). The initial free handouts of food and later of agricultural inputs, centrally organised
and implemented through NGOs, left the rural private sector with little functionality.
Renewed market-oriented approaches were implemented with the aim of revitalising
the rural private sector. Initially based on food and input vouchers (to be used as payment
at a local shop or dealer), it now also entails value chain programmes, agri-dealer support,
and the like (see the detailed list in the second part of this chapter).
Private sector recovery will strongly depend on the liberalisation of the sector through
government policy and the availability of credit. According to several private actors
interviewed,50 neither of these conditions is being met. The enactment of the Indigenous
Ownership Act at the end of 2010, making it compulsory for international companies to
reserve a 51% ownership for black Zimbabweans, has caused mistrust, as it is strongly
related to the governments previous property rights expropriations (New Zimbabwe,
2010). In addition, local private sector players are hamstrung by a lack of credit and the
absence of a comprehensive policy framework.
50 Personal communication: Interviewed during research project, 3 and 4 February 2011.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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4.1.4 O
ther agricultural actors regional and
pan-African organisations
Although Zimbabwe has been privately (but very rarely publicly) criticised by fellow African
states, its membership of regional and pan-African entities has never been questioned
(Alden & Anseeuw, 2009). Unlike donor organisations, regional organisations derive
their authority from member states and, therefore, can only work through governments.
Their work is limited to policy issues and investment priorities.
Two initiatives are noteworthy regarding agriculture: the Comprehensive Africa Agriculture
Development Programme (CAADP) of the New Partnership for Africas Development
(NEPAD) and SADCs Regional Agricultural Policy.
Through the African Union, the NEPAD programme is promoting the CAADP framework.
Within this framework, member states have ratified the Maputo Agreement, which prioritises
agriculture as an identified development vehicle and allocates at least 10% of the national
budget each year to the sector. At national level, Zimbabwe has also engaged in the
preparation of the CAADP Compact, identifying priority investments. Although this process
has been halted (probably because of a lack of resources), it could be revived through the
USAID-supported CAADP process.
Also, SADC is in the process of establishing a Regional Agricultural Policy, with assistance
from the FAO. This is, however, in a very early phase (SADC, 2010).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 101
management company, GRM International, on seed crop breeding. The Seed and Markets
Project is also funding the Food, Agriculture and Natural Resources Policy Analysis Network
(FANRPAN) to compile a policy and regulatory framework for seed markets.
Box 4.5: Agricultural research institutions in Zimbabwe
Agricultural research institutions include both local and international organisations,
consisting of academic institutions, consulting firms and organisations linked to the
Consultative Group on International Agricultural Research (CGIAR).
Local institutions form two categories:
Public research institutions: University of Zimbabwe, SIRDC and the Agricultural
Research Council.
Private research institutions: African Institute for Agrarian Studies (food security
and land policy), Centre for Rural Development (rural development), Mandi Rukuni
Seminar (food security), etc.
International institutions include CIMMYT (maize and wheat), the International Crops
Research Institute for the Semi-Arid Tropics (ICRISAT) (small grains promotion), the World
Agroforestry Centre (ICRAF) (agro-forestry) and FANRPAN (livelihoods and natural
resources).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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4.2.1 Government
Since independence, the government has been involved in subsidy schemes for smallholder
farmers. After the FTLRP, however, it could not continue these, as it became increasingly
isolated and cash-strapped. As a result, the implementation of government projects was
mainly through the central bank, which became a major player in the economy, particularly
in agriculture (RBZ, 2008). Relying on artificial funding by the RBZ, which printed money
to fund the projects, these operations were implemented within a hyperinflationary
environment. Very few of these projects were agreed upon through formal processes;
few had established budgets or a target number of beneficiaries.53 From 2004 to 2009, the
RBZ provided subsidised inputs, free fuel and mechanisation equipment. It also controlled
input imports by holding all foreign currency reserves in the country.
However, this ended with the GNU in 2009, which amended the RBZ Act to outlaw
quasi-fiscal activities. In 2009, with the help of NGOs, the government endeavoured
to implement a public works programme for food aid, the so-called Food for Work
programme. This has since failed to take off because of strained relationships between the
government and NGOs. In the 2010/11 season, the government implemented a subsidised
inputs programme, where private companies were contracted to provide seed and fertiliser.
Farmers received two bags of fertiliser and a 10 kg maize seed pocket (and, in some cases,
sorghum) for US$35. The programme was implemented through the GMB at a cost of
US$30 million. It distributed 3523 tons of seed maize, 98 tons of seed sorghum, 3903 tons
of ammonium nitrate (AN) fertiliser and 12 705 tons of Compound D, reaching 400 000
households. Lastly, a land audit has been negotiated with several donors for two years, but
it has not been implemented yet. Table 4.1 summarises the government projects.
Government programmes seem to follow an ad hoc approach, responding to very diverse
objectives, some being political rather than focusing on peoples needs.54 The short-term
nature of these interventions, the lack of transparency in their functioning, the inability
to identify beneficiaries, and the dearth of records and evaluation lead to questions
about their efficiency. However, some have apparently delivered results. A first result was
the involvement and engagement of the private sector, through the Subsidised Inputs
Programme of 2010, at a time when public services were in a dire state. A second one
was the Food for Work programme, showing how collaboration between government and
donors can ensure at least a minimum level of convergence. This should lead donors to
investigate their action plans and evaluate the possibilities of closer collaboration between
private and public entities.
53 Personal communication: Interviewed during research project, 4 June 2010.
54 Personal communication: Interviewed during research project, 6 June 2010.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Page 104
Productive Sector
Facility
Agriculture
Sector
Productivity and
Enhancement
Facility
Operation
Maguta
National Cassava
Programme
Farm
Mechanisation
Programme
Public Sector
Investment
Programme
Inputs Assistance
Programme
2004
20052009
2007
20072008
2008
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Land Audit
2010
2010
European
Union pledged
some funds
WFP
Government
Government
RBZ
RBZ
Government/
FAO
RBZ
RBZ
RBZ
Funder
45 million
335 000
Budget (US$)
Subsidised Inputs
Programme
2010
20102011
20072008
Programme
Period
Description
Had been planned for ten phases but only two completed because of lack of
funds. Tractors, combine-harvesters and other equipment given to farmers on
credit, to start paying back in two years. It became very controversial for its biased
allocations.56
In principle, the system allocated resources for implementation based on projected
revenue inflows and priorities in all sectors, including agriculture. However, due to
budgetary limitations, some projects failed to receive funding.
Providing inputs to farmers on credit, with a 210-day payment period.
To be provided by private companies with the government guaranteeing credit.
This was discontinued after the first phase because private companies pulled out,
citing irregularities on the part of the government.
A modified version of the scheme above. This time, the government set aside
US$45 million to buy inputs from private companies and tasked the companies
with the distribution to rural centres.
A resuscitation of the 1989 strategy of the Food for Work programme where rural
people get food aid in compensation for working to improve local infrastructure
like roads, dip tanks, waterways, and the like (similar to the felt needs approach).
NGOs bring the food for distribution and the Ministry of Local Government
identifies work arrears and controls the process. This improves local infrastructure
while households avert starvation. The programme was quickly aborted because
of disagreements between government and NGOs.
The government was supposed to implement a land audit in 2009, funded by the
European Union, but this has not happened yet. There is reluctance on the part
of those senior government officials who are suspected to have corruptly gained
from the chaotic FTLRP.
Meant to cater for the increased need for agricultural financing. Under this
facility, the RBZ provided agricultural financing at a 25% interest rate for food
crop production at a time when interest rates on loans in the commercial banking
sector were between 300% and 400%.55 The facility had repayment periods of six
months for seasonal loans and 18 months for capital expenditure loans.
Funding low-cost inputs for farmers, mainly the resettled ones. Funded by the RBZ.
Source: Authors.
Government
(but still to be
implemented)
Government
Government
Government
RBZ
RBZ
Government
National Task
Force
National
Army
Government
through the
GMB
RBZ
Implementer
Horticulture
Support
Conservation
Agriculture for
Food Security
HIV/AIDS
Mainstreaming
Farm
Management
Conservation
Agriculture
Inputs Assistance
Programme
Inputs
Emergency Aid
Small Grains
Promotion
Inputs and
Market Linkages
Livelihoods
Livestock Health
Livelihoods
Livelihoods
Livelihoods
Agri-Information
Conservation
Agriculture
20072011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20092010
20092011
20082011
20082009
20082010
20082010
Policy Building
Programme
20052010
Period
4 073 879
1 781 148
908 626
732 601
1 300 000
843 880
475 000
2 097 902
399 000
70 000 000
23 947 626
4 073 879
140 984
450 000
3 244 434
45 000
1 101 827
Budget (US$)
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
NGOs
Farmers unions
NGOs
NGOs
NGOs
NGOs
Government
Implementer
Improving Policy Environment and Related Capacity for Sustainable Food and Agriculture
Development in the SADC Region Phase I: Zimbabwe received technical assistance to draw
up an agriculture policy.
Development and piloting of horticulture outgrower schemes for export markets in eastern
and southern Africa.
Upscaling Conservation Agriculture for Improved Food Security using the CAADP Framework:
Conservation farming was taught to communal households in Zimbabwe.
Description
Table 4.2: F
AO-funded long-term projects covering input assistance, farm management, livelihoods, conservation farming
and livestock projects since 2005
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 105
Implementer
Number of
beneficiaries
(Households)
2010/11
Farmers unions
3 000
2010/11
ZFU
12 000
2010/11
SAT
31 000
2010/11
SAT
750
2010/11
SAT Concern
4 500
Description
Conservation farming. Inputs seed for maize, cowpeas, sorghum
and sugar beans.
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Page 106
The FAO started with a policy initiative to create a framework into which assistance could
be incorporated. However, projects moved to short-term initiatives, probably because the
policy framework was not developed. The FAO is not working with the private sector in
implementing programmes, leading to concerns about the sustainability of its projects. It is
worth considering expanding the focus beyond NGOs (depending on humanitarian needs)
and looking at farmers unions and the private sector. The FAO is working with farmers
unions on only a few projects.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 107
Page 108
Supplementary
Feeding
Schemes
School Feeding
Schemes
Inputs
Emergency Aid
Farming Inputs
Farming Inputs
Protracted
Relief and
Recovery
Yearly from
2002 to 2009
20092010
20102011
20102011
20112012
Programme
Yearly from
2002 to 2009
Period
WFP
OCHA
Emergency
Relief Fund
UNHCR
WFP
WFP
WFP
Funder
Not available
Not available
70 000 000
Changed
yearly
Changed
yearly
Budget (US$)
National and
international
NGOs
Africa 2000
Christian Care
International
NGOs
International
NGOs
International
NGOs
Implementer
5 000 households
800 households
Not available
Information not
available
Number of
beneficiaries
Sorghum, cowpeas.
Description
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Programme
Protracted
Relief
Programme
Zimbabwe
Emergency
Agricultural
Inputs
Project
Period
2009
2011
2009
2011
World Bank
DFID
and SNV,
European
Union,
Norway,
AusAID,
UKAid and
World Bank
Funder
Not available
DFID: 30 million
(19 million in
grant funds).
Further donor
support:
16.3 million
in 2009
Budget
International
and local NGOs
32 international
and local NGOs
Implementer
2009/10: 381 000
farmers one or more
inputs
2008/09: 80 000
households
field crop seeds;
200 000 households
topdressing fertiliser
10 000 people/
month awareness
campaigns and
training sessions
Number of beneficiaries
(Households)
Description
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 109
Funder
BMZ
Danish Red
Cross
European
Commission
Finnish
Red Cross
IFAD
Irish Aid
OFDA
Plan
International
AusAID
Tearfund
USAID
SDC
USAID
USAID
USAID
SDC
Programme
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Farming
Inputs
Information
Network
Loan
Guarantees
Studies
Irrigation
Rehabilitation
Period
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
20102011
Yearly
2011
2011
TBA
Page 110
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Not appointed yet
US$200 000 to
US$300 000
US$10 million
FEWS NET
SAT
River of Life
Plan International
Plan International
Trocaine
Africare
Implementer
US$20 million
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Not available
Budget
Not available
Not available
Not available
Not available
7 343
18 302
12 843
2 700
1 256
13 200
750
800
17 016
126 723
9 870
38 622
Number of
beneficiaries
(Households)
Vouchers (US$60)
Vouchers (US$60)
Inputs
Inputs
Description
AfDB
Capacity
Building/
Studies
Drought Relief
Sector Grant
Loan
Ongoing
2009
2009
2008
2011
China
SADC
AfDB
Netherlands
Capacity
Building
US$342 million
ZAR300 million
US$1 million
US$6 million
Not available
Not available
France Action
Contre la Faim
Ongoing
Not available
Infrastructure
Studies
2010 to date
(ongoing)
SNV
US$3.3 million
(for Zimbabwe,
Lesotho and
Swaziland)
Budget
Not available
Agri-Dealers
20102011
SDC
Funder
MDTF
Seed Markets
Programme
20102012
Period
Government
Government
Government
Government
Various NGOs
Various NGOs
MDTF
Local NGOs
GRM International
Implementer
Not available
30 000
households
Not available
Four studies:
1) Achieving household and national
food security.
2) Zimbabwe Agriculture Sector
Assessment (first draft produced).
3) Baseline study for the agrarian
sector.
4) Study on land reform.
Promoting agri-dealers.
Description
Not available
Not available
Not available
Not available
Not available
Not available
Number of
beneficiaries
(Households)
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Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 113
(iii) M
arket studies and investment studies, of which the future implementation may be
based on the areas that are prioritised under the CAADP process (by the government
of Zimbabwe), the ZASA (by the World Bank and the MDTF), and the strategic
investment planning documents of USAID.
Although these renewed approaches are essential and a welcome transition from the
previous food aid projects, they are only the initial and necessary stepping-stones towards
broader structural changes. When compared to the post-crisis reconstruction framework
detailed in Chapter 2, two points should be highlighted. On the one hand, in addition
to being mainly emergency-oriented, the initiatives are all project-based. All of them
have a specific objective (even though a certain evolution towards development-oriented
strategies has occurred), are time and area-bound, and are thus very limited in scope.
On the other hand, the projects currently being implemented focus narrowly on food and
agricultural production. A few started targeting broader value chains; none (except the
USAID credit facility scheme) are oriented towards broader integration of the agricultural
sector (agribusiness development, manufacturing and industrial development, financial
sector development, etc.), and wider macroeconomic and governance restructuring.
Zimbabwe needs a structural paradigm shift and a transformation towards sustainable
agricultural production, based on in-depth structural and broad policy changes. This will
liberate the country from aid dependency. Investments in policy reflection and in the
general resuscitation of the economy (particularly the private sector) are still lacking.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 114
Chapter 5
Investment priorities for agricultural sector development
and zimbabwes post-crisis reconstruction
Recent political and economic developments in Zimbabwe offer the twin prospects of a
renewed restructuring of economy, including agriculture, and rapid, sustainable growth
following the nadir reached at the end of 2008. The introduction of international
currencies in 2009 removed the main constraint hyperinflation and liberalisation should
progressively eliminate the many market dysfunctions introduced since 2000 (Gilpin, 2008).
An effective sectoral recovery strategy will require the mobilisation and investment of
financial resources from both public and private sources. However, investments alone
will not lead to sustainability. Agriculture, and the economy overall, needs the requisite
factors of production and exchange. As such, based on the Post-Crisis Reconstruction
Model, this concluding chapter starts by detailing broad restructuring prerequisites for a
sustainable post-crisis reconstruction in Zimbabwe. The second part highlights effective
investment priorities for the development of the agricultural sector and Zimbabwes postcrisis reconstruction. Lastly, as concluding comments, it suggests an overall strategy for
Zimbabwe, combining policy, sectoral or value chain, and territorial development reforms.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 115
sector will thus not simply require revitalising the sector, but rather developing an entirely
new sector, based on renewed structures that necessitate renewed instruments.
As described in the second chapter, this highlights the importance of broader, fundamental
strategies for Zimbabwes post-crisis reconstruction, beyond project-based and agricultureoriented initiatives. Moyo et al. (2009) emphasise the need for a fundamental rethink of
strategic interventions and policies to enhance the role and contribution of agriculture in
future. These include:
(i) The design of rural financial services and credit facilities that essentially move
beyond the requirement for freehold title as collateral to new forms of credit
guarantee supported by the state (and/or non-state actors);
(ii) Consideration of a range of land tenure options for securing land rights and
encouraging investment, including permits, leases and other mechanisms;
(iii) A redesign of infrastructural and technological support, again moving beyond
the assumption that certain types of scale-specific infrastructural investments
(in irrigation facilities, production/processing equipment, tobacco barns, etc.)
are appropriate to the present context;
(iv) An adaptation of market systems and supply chains, not exclusive to, but also
inclusive of high-value, high-risk European and North American export markets;
(v) Support for the dynamic entrepreneurialism of new farmers particularly on
the A1 farms without undermining this with inappropriate or heavy-handed
stabilisation measures; and
(vi) Active intervention by the state not through the distorting practices of command
agriculture or price fixing, but through coordinating, facilitating and providing
focused subsidies and start-up finance to rejuvenate agricultural production.
But, in addition, the post-crisis reconstruction also calls for the broader restructuring
and reconstruction of the economy, governance and policy. The very clear message from
the government states that reconstruction with equitable growth and stability should
be characterised as a pro-poor, broad based and inclusive development framework
(Government of Zimbabwe, 2009a). The governments equitable growth strategy
emphasises rapid economic and trade growth through major investments (cf. the CAADP
programme in agriculture) as the key to success. Without underestimating the complexity
and gravity of current challenges, this needs to acknowledge the concomitant necessity
of a social contract that is generally recognised and supported, and effectively engages all
stakeholders in a broad framework of reforms. According to the Post-Crisis Reconstruction
Model, this emphasises the need for governance restructuring; an engagement in
agricultural, and overall, policy reform; a rethink of assistance strategies; and the
establishment of a stimulating economic environment. These conditions are not exclusive,
but are rather complementary and strongly related.
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Page 117
Third, in line with the Paris Declaration, these policies should reflect a country-owned
strategy. This implies that Zimbabwe should develop its own strategies that represent the
countrys guiding framework (guiding every Zimbabwean actor and forming a framework to
which others should align themselves, avoiding ad hoc or parallel processes). These policies
should also have countrywide representation (once again, including all stakeholders).
In the absence of the required overarching policy framework, each external intervention
beyond relief should be interrogated about how it will contribute to the long-term
development of the agricultural sector and the economy as a whole. Its design should be
informed by an assessment of the complementary actions needed to ensure the required
outcome. This might be the only way to design a coherent investment strategy (seeing aid
as an investment), which could kick-start and sustain economic growth.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 118
Category
Public
Nature of investment
Policy reform*
A
gricultural and land policy
I
nterlinkages with broader economic policies
Notes
Long-term
investments
Private
sector
Immediate
investments
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 119
sufficient for addressing growth and development fundamentals. Growth also depends on
the sustained adoption of improved technologies, continuing efforts to reduce marketing
costs, and attention to the evolving nature of agricultural markets.
Although the private sector will play an important role in this process, there is a significant
role for the government and the donor community to improve the level and distribution
of returns on agricultural investments. Government needs to operate as a facilitator of
investment through, for example, the provision of public support for agricultural research
and extension; the provision of public goods, such as better road and rail systems, which
reduce marketing costs; and improved market information, which resolves market failures.
Again, these will include stronger partnerships between government, the donor community
and private investors based on solid, inclusive governance and policy frameworks. This will
also facilitate debt relief and budget support, easing the constraints on Zimbabwes
development trajectory.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 120
Table 5.1: Z
imbabwes proposed development expenditure on the infrastructure
programme (in US$ million at constant 2009 prices)
Category
2010
2011
2015
2020
Total
(20112020)
22.0
102.5
98.7
822.9
68.6
215.1
137.9
134.0
1 920.3
443.5
150.1
154.6
2 252.9
165.8
223.7
386.2
3 626.6
41.7
98.0
75.5
887.5
30.9
0.3
72.4
207.6
352.6
461.9
4 586.5
3.5
5.4
39.0
276.2
1 036.7
857.8
9 621.6
60.0
30.0
1 375.0
10.0
20.0
100.0
Power
453.2
2 076.0
Railways
165.0
25.0
740.0
Civil aviation
86.0
226.0
Communications
6.1
43.4
Total
780.3
75.0
4 560.4
276.2
1 036.7
1 638.1
947.0
14 182.0
Grand total
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 121
Year
installed
Installed
capacity
(MW)
Theoretical
send-out
capacity (MW)
Actual average
maximum sendout capacity (MW)
Kariba
Hydro
195960
666
666
750
Uprated in
1990s
Hwange
Coal
198186
920
876
698
Overdue
overhauls
Harare
Coal
1940s58
135
128
43
Munyati
Coal
1950s
120
114
42
Bulawayo
Coal
1950s
120
114
60
1 961
1 898
1 593
Station
All
Remarks
Ongoing,
although due
to be retired in
20042005
The economic collapse, mismanagement, corruption and the lack of funding for repair
and maintenance costs have undermined ZESAs ability to meet the countrys electricity
requirements. Currently, about 80% of the urban population and 35% of the rural
population has access to the distribution network (the connection rate has declined by
50%, with waiting lists that have increased fourfold). There has been no major investment
in power generation infrastructure in Zimbabwe since 1986. The actual average maximum
send-out capacity of the power stations of just under 1600 MW falls far short of the
minimum 2300 MW capacity necessary to meet demand and reserve requirements (see
Table 5.3). The estimated energy supplies are only about 40% of installed capacity and
provide less than half of peak demand, even with reduced levels of economic activity.57
The energy deficit is estimated at 2.691 billion kWh (CIA, 2011). Between 1996 and 2006,
the country depended on imports for 35% of its energy requirements and 23% of its
power requirements, but foreign currency shortages and a lack of firm power contracts
forced ZESA to resort to load shedding. In addition, the countrys grid equipment has been
damaged, due to the frequent breakdown of equipment because of poor funding, leading
to a worsening of power distribution.
Without being exhaustive, major problems related to the electricity sector and to
agriculture broadly are linked to the reduction in production capacity and productivity, and
the cost of alternative energy sources. This is particularly the case for irrigation-dependent
crops (since grid electricity is the major source of power for irrigated crops), sanitarysensitive production (for example, poultry) and agri-enterprises that are directly electricitydependent. Examples include the following:
(i) Wheat has been especially affected: yield levels declined to the current estimated
2 t/ha from the peak of 5 t/ha in 2002 (see Chapter 2) and production decreased
to 30 000 tons from 350 000 tons.
57 There has been a decline in consumption in the agricultural, mining and industrial sectors, but an increase in domestic demand.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 122
(ii) Chicken production has been negatively affected by continued power shortages that
reduced production capacity (Mudzonga, 2009). In 2001/02, the lack of electricity
caused a production decline of almost 20%, mainly due to sanitary problems.
Farmers have resorted to installing generators, leading to excessive costs (90 litres
of fuel per hour for a medium poultry production) (Mudzonga, 2009). The lifting
of the import ban on chicken meat resulted in a 50% decline in production, with
Brazilian and South African chicken meat being 20%30% cheaper (Mudzonga, 2009).
(iii) Agro-industries are reportedly operating at between 10% and 40% of capacity
one of the main reasons, besides the lack of markets in general, is the shortage
of power (Dawes et al., 2009).
Table 5.3: Actual capacity sent out (MW) and energy sent out (GWh)
Year
Kariba
MW
Hwange
GWh
MW
GWh
Harare
MW
Munyati
GWh
MW
Bulawayo
GWh
MW
GWh
1997
2 122.3
736
4 781.3
161.4
160
72.6
1998
1 925.9
726
4 407.7
121.5
127.6
1999
2 949.3
678
3 866.0
110.0
121.1
44.3
2000
601
3 260.4
640
3 317.3
74
186.0
70
110.7
63
121.4
2001
621
2 997.7
782
4 808.9
47
27.5
59
44.2
87
47.5
2002
631
3 823.9
732
4 580.7
47
66.7
53
19.1
74
47.5
2003
754
5 359.2
606
3 388.2
41
32.7
32
7.1
42
11.6
2004
753
5 521.2
744
3 907.5
46
106.5
57
58.6
63
124.5
2005
748
5 418.3
698
3 902.6
25
17.3
20
4.9
58
47.6
2006
729
5 310.3
642
2 430.0
24
1.7
30
36.1
Average
691
3 868.8
698
3 939.0
43
83.1
42
65.3
60
55.3
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 123
Note that ZESA is currently facing a US$900 million debt.58 This includes US$140 million
owed to southern African regional powerutilities, adding to ZESAs requirements of an
estimated US$540 million to upgradeits infrastructure. However, ZESA was only allocated
US$55 million inthe 2011 national budget.
With sustained underinvestment in electricity generation, agriculture (among other
economic sectors) is likely to experience restricted growth, owing to the limited capacity
of non-gravitation-reliant irrigation projects, wheat production (which relies entirely on
irrigation), fresh produce storage and transformation, chicken production projects, and
the processing sector. The opportunities in agriculture are substantially reduced in the face
of critical power shortages. Investing in power generation, therefore, remains a necessary
condition for any meaningful recovery of Zimbabwes agricultural and agro-industrial
sectors. Given the shortage of electricity, investments will take time to be realised and
re-established. Before then, there may be a need for a careful assessment of the feasibility
of some agro-processing and irrigation projects, since the sustainability of agricultural
growth might be compromised by the unreliable provision of energy.
Box 5.1: Estimated investment costs for power generation
Various estimates have been proposed in view of varied assessments of Zimbabwes
generation capacity. The World Bank (2008b) estimates total investment costs of
approximately US$1.26 billion for the refurbishment of generation infrastructure and
the rehabilitation of transmission and distribution infrastructure. The AfDB (2010)
estimates a total investment cost of US$4.3 billion, including US$2.1 billion of private
investment in new generation capacity.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 124
roads were already in need of re-gravelling. By 2005, only 24% of the entire road network
was estimated to be in good condition (World Bank, 2008b).
Railway: Zimbabwe has an estimated 3077 km of railway lines across the country,
313 km of which is electrified (GweruHarare section) (CIA, 2011). The National Railways
of Zimbabwe has also suffered during the general decline of the economy, which was
exacerbated by mismanagement59 and skills flight in search of better working conditions.
Given a general neglect of maintenance, a lack of spare parts, and overdue replacement of
equipment, only part of the railroad network is in good condition and equipment problems
have led to reduced service. Steam locomotives have been reintroduced since 2004, as coal
is in relatively good supply, while diesel must be imported and electricity shortages are
common. In addition, the company is seriously indebted, making it impossible to solve this
situation without external help.60 Goods transport declined from 18 million tons in 1998
to 2 million tons in 2010, and about half of the 213 locomotives and 10 500 wagons are
presently sidelined.61
The main problems related to the railways include the following:
(i) Market (input and output) access problems: Transportation of produce and inputs
to and from markets remains one of the most critical challenges facing many
small-scale rural farmers, particularly in remote areas, as well as major industries
and economic actors. This results in a lack of commodities for basic consumption
and economic activities. The impacts can be far-reaching, with several trickling-down
effects. For example, tobacco farmers who utilise coal for curing flue-cured tobacco
have had limited access to coal from the Hwange colliery mine, owing to the poor
state of the rail system.
(ii) Increased costs: The poor road and rail system is a major hindrance to input
distribution in agriculture and the industrial sectors, leading to higher costs and
longer waiting periods. Poor transport also often results in a deterioration of the
quality of farm produce.
(iii) Loss of negotiation power for small-scale and remote farmers: Smallholders very
often find themselves limited to local markets and at the risk of being exploited
by unscrupulous intermediaries, which take full advantage of farmers need for
immediate cash and disposal of their produce.
There is, therefore, a need to invest in rehabilitation, particularly of the railway and the
rural (and urban) road network, including in poorer and remote areas as well as in highly
59 See: allafrica.com/stories/201007020866.html
60 www.africanews.com/site/Zimbabwean_trains_held_in_China_over_debt/list_messages/36451
61 www.railwaysafrica.com/blog/2011/02/nrz-freight-stats-plummet%e2%80%a8/#
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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5.2.2 Telecommunications62
Although teledensity rates have improved in the past ten years, the sector has been
unable to meet consumer demand. Problems include poor reliability, frequent disruptions
of operation, and long waiting lists for service registration, leading to poor coverage,
especially in the rural areas. TelOne has about 332 000 fixed lines in service, giving a fixed62 B
efore liberalisation in 2001, the government-owned Posts and Telecommunications Corporation held a monopoly on all telecom
services in the country, except cellular services. The Posts and Telecommunications Act came into effect in September 2000.
Its purpose was to establish the Postal and Telecommunications Regulatory Authority (POTRAZ), which started operating in 2001.
POTRAZ is mandated by law to issue licences in the postal and telecommunications sector, to set the terms and conditions of the
licence agreements, and to regulate tariffs. The telecoms licensees contribute to a Universal Service Fund, which is managed by
the POTRAZ Board. The Fund is intended to support the expansion of communication services to underserviced areas.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 126
line teledensity of 2.7% (see Table 5.4). Mobile subscribers number about 1.1 million, giving
a mobile penetration rate of 9% (as against an estimated demand of 2 million). There are
four licenced data communications providers and three licenced Internet access providers;63
however, there are only about 1.2 million Internet users, owing to limited expansion
(services are only provided in urban centres). TelOne is burdened by foreign currency debts
reported at US$350 million in 2005, with its operating equipment having outlived its
useful life. In addition, the expansion of the networks and service levels is hampered by
the shortage of foreign currency and the lack of private sector engagement.
Table 5.4: Telecommunications in Zimbabwe
Items
Statistics
332 000
2.7%
26
Mobile subscribers
1 100 000
25%
9%
Mobile penetration
Internet host computers
6 600
Internet users
1 200 000
Internet penetration
10%
Source: World Bank (2008b).
Besides the normal issues linked to a lack of telecommunications, other concerns are:
(i) Rural areas in Zimbabwe are, for the most part, disconnected from any (market)
information, leading to dysfunctional markets.
(ii) Currently, the lack of adequate resources in information and communications
technology (ICT) is undermining the traditional roles and effectiveness of a range of
public institutions, including the national agricultural research and extension service,
veterinary services, agricultural education, mechanisation and irrigation support.
Accordingly, investments should have a strong governance orientation, and include the
following:
(i) Governance:
1) T
he government should initiate a thorough audit of the assets and liabilities
of TelOne to inform a restructuring of the corporation and a future privatisation
strategy.
2) It should strengthen the independence and capacity of POTRAZ to encourage
investment in the sector.
63 The national Internet backbone was upgraded to 2 Mb/s in 1998 and expanded to 11 Mb/s by 2003.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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3) It
should consider Zimbabwes participation in the Regional Communications
Infrastructure project of the World Bank or a similar initiative to enhance
international connectivity of all services to and from Zimbabwe.
4) POTRAZ
should review Clause 3.23 public data network service licences with
the aim of amending the clause to allow licensees to offer Voice over Internet
Protocol (VoIP) services.
5) The
government should ensure the appointment of the Board of POTRAZ
in accordance with the law.
6) POTRAZ
should enter into a twinning arrangement with private sector
players for the exchange of staff and the transfer of skills (World Bank,
2008b; AfDB, 2010).
(ii) Major ICT infrastructure investment in rural areas: TeleAccess originally aimed to
invest up to US$540 million in setting up infrastructure throughout the country,
targeting the corporate market but also offering telecommunication services
(World Bank, 2008b).
(iii) Development of ICT services: With the support of government and the private sector,
this will assist farmers and agribusinesses with agricultural and market information.
Investments in telecommunication are a critical intervention in agriculture, as ICT becomes
a crucial mode of transferring market information. An efficient market information hub,
underpinned by well-developed ICT, is likely to increase market efficiency, owing to easier
and more efficient methods of farm-level extension and agricultural market development.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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With Zimbabwe being an atypical subtropical country64 with one rainy season (November
to March 657 mm/year), the lack of irrigation development leads to:
(i) High crop failures in natural regions III, IV and V, characterised by low and unreliable
rainfall patterns that are coupled with high summer temperatures; and
(ii) Unreliable production of several strategic crops, such as soybeans, maize,
groundnuts and cotton, which receive supplementary irrigation in summer to
guard against mid-season drought and prolong the ploughing season. (Virtually
all wheat and sugarcane grown in Zimbabwe is under irrigation, while 70% of
coffee and 55% of tea are under irrigation.)
Access to water through irrigation is vital to Zimbabwes agricultural sector. This could
both increase national agricultural productivity65 and stabilise yields (Makadho et al.,
2006). The Department of Irrigation estimated in 2003 that more than 15 600 ha could
be irrigated immediately should water in 23 government dams be utilised (Department
of Irrigation, 2003). In communal areas, the total potential from internal water resources
is more than 90 000 ha. Year-round cropping would be possible if water could be made
available continuously.
Accordingly, investments should comprise the following components:
(i) Based on existing water resources, the identification and development of irrigation
projects and/or the development of old projects needing rehabilitation;
(ii) Institutional capacity building for dams and local irrigation schemes, to be managed
in a decentralised manner, by setting up local water management boards, reinforcing
watershed management measures to regulate water use, and the like;
(iii) Technical capacity building of producers to plan, produce crops, and operate
and manage the irrigation schemes, and of stakeholders, in particular technical
specialists, to provide the necessary inputs/support for irrigation development;
(iv) Project implementation support to MoAMID, and setting up a permanent system
at national and catchment level for observing and monitoring parameters that
enable the monitoring and assessment of water resources; and
(v) Mobilisation of non-conventional water supplies to reduce the gap between
demand and supply, particularly in unserved areas (through rain catchment,
reuse of return flows and use of wastewater): increasingly, techniques and
expertise are available for tapping non-conventional water supply sources in
a sustainable manner (Gumbo, 2006).
64 In Zimbabwe, dryland cropping in natural regions III, IV and V has generally proven hazardous due to the very low and unreliable
rainfall patterns, coupled with high summer temperatures. Rain-fed crop production frequently fails because of the regions aridity,
and families in these areas rely more on aid from either the government or food aid NGOs. In other parts of the country, such as
regions IIa and IIb, the risk of crop failure has been increased by prolonged mid-seasonal dry spells, where annual rainfall is reduced
by a mid-season drought.
65 This is because irrigated land produces more than double the yield of rain-fed land.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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The institutional and financial viability of such projects is important. In-depth reflection
is necessary on how these dams and schemes will be managed. In a commercial context,
irrigation developments can be implemented with the bulk water capture and supply
function retained in the public sector. Agricultural water can be supplied at cost or
subsidised to users, with producers managing the schemes. The schemes can also be
managed entirely at a decentralised level, being either financially autonomous or having
budgetary support.
Box 5.3: Investment costs for irrigation rehabilitation
The CAADP initiative points out that the cost of rehabilitating irrigation infrastructure
is estimated at US$157 million, while the provision of irrigation facilities to exploit
underutilised water in existing major dams is estimated to cost US$1.05 billion
(Government of Zimbabwe, 2009c).
Research
Although Zimbabwe had an extensive network of diverse institutions engaging in
agricultural-related research,66 very little research is currently conducted, mainly because of
a lack of funds.
(i) Although the Department of Agriculture hosts 12 research stations around the
country, research activities at these stations have declined, owing to a lack of
government funding and high staff turnover (FANR Directorate and SADC
Secretariat, 2008).67
(ii) Public research centres have been significantly affected by brain drain (the University
of Zimbabwe once a leading African institution in the sector has only a few
agricultural economists left), but several smaller, private research and consultancy
agencies have emerged.
66 This includes three ministries in Zimbabwe that host national agricultural research organisations and specialised departments (including
Agritex); nine state and three private universities, with each of them presenting several agriculture-related faculties, departments or
modules; and research parastatals (the Tobacco Research Board, the Scientific and Industrial Research and Development Centre, the
Forestry Commission, and the Pig Industry Board).
67 www.sadc.int/fanr/agricresearch/icart/inforesources/situationanalysis/ZimbabweSitAnalysisFinalReport.pdf
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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(iii) Research equipment and facilities are not maintained and are often dysfunctional,
making meaningful research difficult.
Extension:
Besides the significant decrease in agricultural research, the lack of resources is also
hampering efforts to provide critical services to farmers in remote areas.
(i) In agricultural extension, the farmer-to-extension worker ratio in the 1990s was
estimated at 800:1 (Rukuni, 2006). Although the number of extension workers
remained the same (approximately 1600), this ratio inevitably worsened after 2000,
given the increase in the number of new farmers. Currently, most extension workers
have low levels of experience and competency (due to skills flight among the more
experienced extension workers), are isolated, and have limited access to information
on market developments as basis for giving up-to-date agribusiness advice to farmers.
(ii) They lack basic equipment such as levels for pegging conservation works, rain gauges
to advise on planting times, and reference materials or manuals to consult when
confronted with specific crop or livestock problems. They also lack transport (bicycles,
motorcycles or travel allowances) for meeting farmer groups or undertaking farmer
training.
(iii) This results in the collapse of public extension, seen in the crippling lack of effective
veterinary services, such as dipping and the control of animal diseases, the lack of
technical advice on crops, and so forth.
The previously well-developed research and extension services represent an advantage for
the country. Although some restructuring might be necessary, a first stepping-stone will be
to build on what exists. Accordingly, investments should comprise the following activities:
(i) Upgrade existing agricultural research centres by funding provision through the
development, for example, of an agricultural research fund for 1) effective research
implementation; and 2) human resources (in number and quality). Enhance
agricultural technology generation, dissemination and adoption at the MoAMID,
the Department of Research and Specialist Services, and Agritex. Attention should be
given to Zimbabwes renewed agricultural sector, which necessitates a reorientation
of services to be developed and, thus, of research needs.
(ii) Promote better integration of more effective research in commodity value chains
through 1) cooperation with the private sector and other organisations; and
2) widening of the resource mobilisation base to meet the needs of the restructured
agricultural sector, in particular smallholder farmers. The public and private sectors
should look for collaborative engagements in research and extension service delivery.
(iii) Capacitate public extension services if this could be achieved through budgetary
support to MoAMID, investments in renewed collaboration with private sector could
be prioritised. National private sector capacities that are available for some of these
services are underutilised.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Cost
(US$ million)
3.40
1.17
0.71
0.38
Research-extension interface
0.33
0.76
0.48
0.80
0.60
Rehabilitating and equipping the biosecurity level 3 laboratory for the local production
of vaccines for anthrax, blackleg, brucellosis, lumpy skin disease and Newcastle disease
1.30
2.12
0.32
0.50
Total
12.87
Source: Government of Zimbabwe (2009c).
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Company name
Current model
Cargill
Informal/centralised
Cottco
Informal/centralised
Seed Quton
Informal/centralised
GMB
Informal
Olivine
Informal
Legume crops
Reapers
Informal
Ostrindo
Multipartite
Cairns Spices
Informal/centralised (Multipartite)
Capsicum
Informal
CTE
Informal
Hy-veld
Informal
AgriSeeds
Informal
ARDA Seeds
Informal
Seed crops
SeedCo
Informal
Sorghum
Delta
Informal
Sugarcane
Mkwasine
Nucleus estate
Northern Tobacco
Informal/centralised
Tribac
Multipartite
Tobacco
ZLT
Informal/centralised
Cairns Foods
Informal/centralised (Multipartite)
Favco
Informal
Honeywood
Informal/centralised
Wholesale Fruiterers
Informal
Selby Enterprises
Informal/centralised
TZI
Centralised
Paprika
Making the agricultural sector interesting to the private sector implies making it secure
and viable for the private sector to invest. Revitalising the institutional infrastructure and
market-based instruments is vital. Besides legal frameworks, an environment of trust
has to be created between the different actors, including government, agribusinesses
and farmers. In order to facilitate this, the government has established the Agricultural
Marketing Authority. Its previous role was to finance and coordinate the activities of the
marketing boards, but in a deregulated market environment, its modified role is now to
facilitate and promote access to agricultural markets, particularly for smallholders.
70 T
he centralised model is used when a processing company gives farmers production quotas and requires high quality standards.
This model uses directed contract farming. The nucleus estate model is a variation of the centralised model and is used when
the company is an estate that contracts satellite outgrowers. The multipartite model refers to contracts where more than one
organisation is mandated to fulfil a certain function. The informal model describes companies that make minimal investments
in the farmers, do not require quotas, and have minimal quality standards.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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(i) Enable and support decentralisation, strengthen the capacity of local governments/
municipalities to deliver services, and ensure development at local level as a vehicle
for improving the quality of life, particularly in rural areas.
(ii) Build the capacity of local representations and their associations. Capacity building
of community, local organisation or union leadership should cover basic elements
of democratic attitudes, leadership, representation, negotiation, procedures and
structures related to the external environment, and programming, for example.
To improve the capacity of organisations or unions to organise themselves and
raise their profile and visibility, it will be necessary to develop the skills and
knowledge of representing agents to ensure effective member representation
and improved communication between the leadership and the grassroots.
Efforts should also be made to ensure the participation of women.
(iii) Promote local partnerships, decentralised cooperation and joint action, such as
cooperative initiatives. Complement and support regional initiatives relevant to
local government.
(iv) Promote alternative development approaches to problems and issues that affect
local organisations by emphasising ownership and the direct participation of
key stakeholders.
(v) Provide a platform for analysing, debating and promoting policy leading to more
democratic and responsive governing structures at local level. Invest in catalysts
for improving communication and generating consensus among African institutions,
NGOs and international development agencies.
(vi) Make provision for equipment and operating capital.
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(iv) There is a need to support research to make technologies and services accessible
to small-scale farmers, such as exposure to available technologies and the range
of products that can be manufactured to encourage uptake of this new business,
the need to enforce food safety and hygiene standards, and research on how
costs of production can be reduced, for example.
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Policy/governance
reforms
Sectoral/value chain
measures
Territorial
development
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 141
levels (from civil society and organisations related to the state and its decentralised bodies)
(FAO, 2005).
The combination of more sectoral and value chain approaches with territorial development
strategies endeavours to foster balanced development of a specific territory as a whole,
including sectors that are booming and areas in difficulty. The more sectoral approaches to
rural development will be unable to respond to the changes that have taken place in rural
Zimbabwe and that will need adapted responses, for the following reasons:
(i) They are centred on agricultural activities, despite the importance of non-farm rural
activities and other income-generating strategies in a country in transition. As shown
through the Post-Crisis Reconstruction Model, agricultural integration and other
sectoral development are as important.
(ii) They do not take account of the potential effects of the strengthening of rural-urban
linkages on transforming agricultural production patterns, as well as on the living
and working conditions of the population, particularly the poor.
(iii) They use project resources to compensate for market failures, only to see these
failures reappear once such interventions have concluded. This, as indicated on
several occasions in this report, is a major issue linked to Zimbabwes (government
and donor) assistance framework.
(iv) Actions are narrowly focused on smallholder farming, not considering that alliances
with non-poor, non-rural agents (i.e. contract farming) can be more efficient routes
out of poverty
(v) They do not take into consideration socio-political constraints or macroeconomic
restrictions, for example on the amount of resources employed, thus limiting the
development of their initiatives.
(vi) The design does not take into account the heterogeneity of the rural areas, since
centrally designed programmes are often one size fits all.
(vii) Confusion between social and economic objectives limits the development of
entrepreneurial capabilities.
Combining these approaches will enable these aspects to be taken into consideration.
It will also facilitate the development of proximity answers to the difficulties of these areas,
adapted to the spatial features and based on local dynamics. Concretely, in Zimbabwes
reconstruction, the territorial entities could offer specific aid to the most disadvantaged
rural and urban territories, supporting smallholder agriculture, encouraging the setting up
of businesses, and supporting tourist activities and land use management. They could also
enable the major urban centres and other economic sectors to develop further, through
urban development contracts and major urban development projects; broader economic
development, including industry and services; and setting up community public services.
One example would be the establishment of a network of rural centres, providing major
services and broader economic development opportunities (see Box 5.6).
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 143
modified maize, yet local farmers are not allowed to grow it. This reduces the
competitiveness of local farmers in a global market. Critical areas where policy
reform is needed include:
Land titling for collateral purposes (unlocking the market value of land),
land should be transferable and bankable;
Agriculture policy framework;
Legal reforms, including the issue of land and water rights;
Liberalisation policy; and
Capacity building
Individual and institutional capacity building is needed in the areas of research,
extension and training; the development of commercial farming skills; enhancing access
to appropriate technology (conservation agriculture, genetically modified products,
new processing technology for agribusiness, etc.); and enhancing access to information
and markets (storage to reduce post-harvest losses, access to export markets, and the
adoption of ICT in government departments).
2) Supporting agriculture and food security by investing in the non-agricultural sector
A second group reflected on the broader services, infrastructure and institutions that
enable the agricultural sector to develop. Many interventions in the agriculture and food
security sectors have focused only on the production side, and the approach was not
comprehensive. Several priorities were identified:
Infrastructure development: This should be done through capacitating local
authorities for social service provision, including health, water and sanitation, and
the development of good road, telecommunications and power/energy facilities.
Support services: This applies to whole value chains and should include research
and extension, education and the introduction of service centres in, for instance,
rural growth points.
Market development: This involves supporting the development of agro-dealers
and embracing the influence of the donor community.
Enabling policies: These include the use of genetically modified crops, a tenure
system, the mandate and operations of parastatals, and general legislation.
Availability of appropriate finance: This should cover long-term loans for
capitalisation, medium-term loans for rehabilitation, and short-term loans
for seasonal provision.
Creation of databases: Examples include land use and irrigation.
3) Interventions of different actors engaged in Zimbabwes agricultural sector
The discussion group explored several pertinent issues, such as how the activities
of local institutions, donors and development finance institutions can be redirected
and their effectiveness improved, or what the targets should be for interventions by
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 144
both state and private actors to support agricultural development and food security.
The major players involved in agriculture development and food security were
categorised into government, donors and development finance institutions, each with
a specific role to play.
G
overnment:
Government must create an enabling environment, including law and order
and individual property rights, in which all actors can perform.
Farming is a business, and the land issue needs to be resolved, moving from
mere land allocation to land ownership.
D
onors:
Develop models that eliminate handouts or subsidies to farmers.
Promote farming as a business (commercialisation).
Strengthen coordination of donor activities.
Capacitate institutions, including farmers unions and associations,
financial institutions, and research and teaching institutions.
Promote bottom-up approaches to development.
Be inclusive of all farmer categories, in recognition of the diversity
and heterogeneity of farmers in the country.
Promote appropriate technology.
D
evelopment finance institutions:
Provide tailor-made financing models for different categories of farmers.
Support infrastructure development.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Annexure 1
List of interviewed institutions
This table shows all the institutions interviewed. More than one person could have
been interviewed in each institution or category. For confidentiality reasons, names are not
disclosed.
Organisations visited
Classification
Government
1
Government department
Treasury/Ministry of Finance
Government department
Central bank
Parastatal
Parastatal
Agribank
Parastatal
Farmers unions
7
Farmers union
Farmers union
Farmers union
Private sector
10
Paperhole Investments
Private company
11
AgriSeeds
Private company
12
Surface Investments
Private company
Multilateral organisations
13
World Bank
14
15
Bilateral Organisations
16
USAID
Aid agency
17
French Embassy
Foreign mission
18
European Union
Foreign mission
NGOs
19
Concern Worldwide
International NGO
20
International NGO
21
Care International
International NGO
22
Local NGO
Research Institutions
23
24
25
26
27
Independent
28
Independents
Economic consultants
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Annexure 2
Agricultural and related legislation
Year
Act
Sector
Description
Pest control
This Act introduces a series of measures to control the spread of the African
migratory locust, the brown locust, the desert locust and the red locust
in Zimbabwe. Section 3 requires owners or occupiers of land to notify
specified authorities about the occurrence of swarms of locusts on their
land. The Minister of Agriculture may provide an occupier or owner of land
with material to fight locusts free of charge (section 4). The owner shall use
the material provided appropriately and following the directions given by
the Minister. The Minister may give orders to occupiers or owners pursuant
to section 5. Sections 8 to 10 prescribe offences and penalties and section
11 specifies the regulation-making powers of the Minister.
1988
Pest control
1989
Pest control
This Act makes provision for the control of pests and diseases affecting
plants in Zimbabwe. The Act consists of 30 sections divided into five parts:
Preliminary (I); Eradication and prevention of spread of pests (II); Control
of importation of growing media, injurious organisms, invertebrates and
plants (III); Special provisions relating to cured tobacco (IV); and General
(V). For the purposes of this Act, the Minister may, by regulation, order
or notice: (a) declare an injurious organism to be a pest either generally
or in respect of a particular type of plant, and either with a view to its
complete eradication or its control or the prevention of its spread or for
some other purpose; and (b) declare a plant to be an alternate host of a pest
(section 2) and may provide for the eradication of pests or the prevention or
control of attacks by or the spread of a pest in accordance with section 4.
Section 6 defines the duty of the landowner to eradicate pests. Provisions of
Part II specify the regulation-making powers of the Minister and the
inspection powers of inspectors in relation to the importation of growing
media and other specified material. Provisions of Part IV concern the
handling, storing and removal of cured tobacco (defined in section 2) and
the licencing of premises of certain growers. Provisions of Part V concern the
appointment of inspectors and some miscellaneous matters, and prescribe
offences.
1989
Pest control
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Year
Act
Sector
Description
1990
Standards
These Regulations prescribe standards for any poultry, i.e. any bird that is
commonly used for food and poultry products. They apply to all poultry,
poultry meat and poultry products that are sold or manufactured for sale
in Zimbabwe. No person shall sell, import for sale or manufacture for
sale any poultry, poultry meat or poultry products other than in terms of
these Regulations (Regulation 2). The standards prescribe ingredients and
use of additives and preservatives, treatment of food, intrinsic qualities
and labelling. Regulation 4 prohibits the use of exogenous oestrogenic
substances and the sale of products containing exogenous oestrogenic
substances. The same regulation defines adulterated poultry meat, poultry
meat products or preparations thereof. (Six regulations)
1990
Standards
These Regulations prescribe standards for peanut and peanut products that
are sold or manufactured for sale in Zimbabwe. No person shall sell, import
for sale or manufacture for sale peanut or peanut products other than in
terms of these Regulations (Regulation 2). They mainly prescribe standards
for the ingredients of peanut butter and a maximum limit for mycotoxins.
1990
Standards
These Regulations prescribe standards for fish and fish products, i.e. fish
parts used for human consumption, with or without salt or seasoning, and
flesh of crustaceans, molluscs, other marine invertebrates, marine mammals
and marine reptiles, with or without salt or seasoning. Regulation 2 provides
that these Regulations shall apply to all fish and fish products that are sold
or manufactured for sale in Zimbabwe and that no person shall sell, import
for sale or manufacture for sale any fish or fish products other than in terms
of these Regulations. Fish and fish products may be placed on the market
with food additives and preservatives as permitted by the Food and Food
Standards (Preservatives, Additives and Prohibited Substances) Regulations
of 1972, but shall be labelled accordingly.
1991
Standards
2001
Standards
The Act consists of 27 sections divided into six Parts: Preliminary (I);
Adulterated and falsely described food (II); Administration (III); Legal
proceedings (IV); Food Standard Advisory Board (V); and General (VI).
Section 2 outlines the application of the Act. Section 4 gives a definition of
adulterated food. Section 5 prohibits the sale, importation and manufacture
for sale of food that is adulterated or falsely described. Section 7 provides
for the control of blended foods. Part III regulates the inspection, sampling,
seizure and disposal of food and detention of food at entry ports.
The Minister may issue an order under section 15 for purposes of obtaining
information about food from importers, manufacturers, and the like. A Food
Standards Advisory Board is established under section 18. The last Part
provides for the appointment of inspectors and analysts and the delegation
of powers by the Minister to local authorities, and prescribes offences.
Section 27 outlines the regulation-making powers of the Minister.
2001
Pest control
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Year
Act
Sector
Description
Land
2002
Land
The Act states that all communal land vests in the President, who holds it
in trust for the people. It shifted authority over these lands from traditional
rulers to local authorities and changed the designation from Tribal Trust Lands
into Communal Areas. Communal land consists of land that, immediately
before 1 February 1983, was Tribal Trust Land in terms of the Tribal Trust Act
of 1979. All those with vested rights are entitled to continue to exercise their
rights on customary land. No person shall occupy communal land unless he
acquired the right to do so before 1 February 1983, has obtained a permit
to do so, or is related to a person who occupies or uses communal land.
Those without vested rights may apply to the relevant Rural District Council
to acquire occupation and user rights. However, in granting the permit to use
this land, the Council must refer to customary law, which excludes women
from acquiring land.
2002
Land
The Act provides for the acquisition of land by the state and for the alienation
of state land. Land may be leased or alienated to a single individual or to
a single corporate body but not to two or more persons jointly without
the consent of the appropriate Minister. Private land shall not be leased
for cultivation if not properly demarcated. The owner of land to which this
Act applies shall permit no cultivation based on sharecropping, unless an
agreement in writing and approved by the Minister is in place.
1992
Land
1998
Land
2005
Land
The Rules set out forms and defined procedures for specific proceedings
and applications with the Administrative Court in relation to the acquisition
of land under the Land Acquisition Act.
1996
Land
The Act provides for the establishment of deeds registries, the appointment
of registrars of deeds, and the registration of deeds and conventional
hypothecations and matters incidental to the foregoing. The Act also
provides for the making and registration of deeds regarding land and
other real rights, rights in land such as lease and servitude, and the transfer
of land.
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Year
Act
Sector
Description
2001
Land
The Act provides for the appointment of chiefs, headmen and village
heads. These local officers shall have a wide range of powers in the local
administration regarding, among other things, grazing, allocation of
communal land and communal land use, irrigation and the use of natural
resources.
2001
Land
2002
Land
The Act provides for the declaration of districts, the classification of lands
in districts by the Minister, and the establishment of Rural District Councils.
Councils shall have functions and powers related to natural resources
management, matters concerning land in a district, water, fisheries, forestry,
sewerage and protection of the environment. A District Council may, among
other things, compulsorily acquire land under this Act, establish cooperatives
and make bylaws.
2000
Land
The war veterans organised like-minded people (not necessarily other war
veterans, as many of them were too young to have fought in the Liberation
War) to march on white-owned farmlands, initially with drums, song
and dance. The programme was officially announced as the Fast Track
Resettlement Programme. The (usually white) owners were forced off the
land, frequently together with their farm workers, who were often of foreign
descent. This generally happened violently and without compensation.
In the first wave of farm invasions, 110 000 km2 of land was seized.
Much of the land was claimed through corrupt means by officials from
ZANU PF, army officers, high-ranking police officers, and the like. Several
hundred thousand farm workers were excluded from the redistribution.
Many of them lost their jobs and their homes. Officially, the land was
divided into smallholder production, so called A1 schemes, and commercial
farms, called A2 schemes. There is, however, much overlap between the
two categories.
2005
Land
Comment:
In 2006, the Agriculture Minister was considering legislation that would compel commercial banks to finance black peasants who had
been allocated formerly white-owned farmland in the land reforms. The newly resettled peasants had largely failed to secure loans from
commercial banks because they did not have title over the land on which they were resettled, and thus could not use it as collateral. With no
security of tenure on the farms, banks have been reluctant to extend loans to the new farmers, many of whom do not have much experience
in commercial farming or assets to provide alternative collateral for any borrowed money (en.wikipedia.org/wiki/Land_reform_in_Zimbabwe
-cite_note-12). This situation still prevails. The Finance Minister has asked Cabinet to give new farmers secure tenure in order for them to
access agri-finance, but this has not happened yet.
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Year
Act
Sector
Description
Dairy
This Act establishes the Dairy Marketing Board and provides rules for the
marketing of dairy produce. It consists of 47 sections divided into seven
Parts: Preliminary (I); Establishment of Dairy Marketing Board (II); Financial
provisions relating to Board (III); Functions of Board (IV); Imposition of
levies on dairy produce (V); Marketing of dairy produce (VI); and General
(VII). The Dairy Marketing Board is established as a body corporate.
The functions of the Board shall, subject to this Act and any direction given
to the Board by the Minister, be to: (a) buy at the appropriate prescribed
prices any butterfat, cream or milk that is delivered by a registered producerwholesaler of butterfat, cream or milk, as the case may be, to any depot
appointed by the Board for the purpose; (b) manufacture and prepare milk
products; and (c) market, within and outside Zimbabwe, milk and milk
products (section 28). Other provisions of this Act concern the imposition of
levies on dairy products, the registration of dairy producer-wholesalers and
producer-retailers, the disposal of dairy produce rejected by Dairy Marketing
Board, procedural matters of the Board, inspections, offences, and the like.
1991
Beef
This Act establishes the CSC. It consists of 51 sections divided into five
Parts: Preliminary (I); Establishment of the Commission (II); Financial
provisions relating to the Commission (III); Functions, powers and duties
of the Commission (IV); Special provisions relating to livestock finance
schemes (V); and General (VI). The CSC is established as a body corporate.
Its functions and powers are set out in Part IV. They include: (a) purchase
at the appropriate prescribed prices all livestock delivered by any person to
the works of the CSC; and (b) operate abattoirs and refrigerating works for
the purpose of chilling, freezing and storing beef, mutton, pork, poultry,
fish and other perishable foodstuffs of whatsoever nature, and canning
factories and livestock animals processing plants (section 31). Section
36 concerns the ownership, possession and keeping of grazers, i.e. any
livestock: (a) of the CSC in the possession of a grazier; (b) purchased by a
grazier out of an advance made by the CSC; or (c) given in security to the
CSC by a grazier for an advance made by the CSC or for a debt due to the
CSC. Grazier means any person who is in possession of grazers and who,
in terms of a contract with the CSC, has agreed to deliver them to or hold
them on behalf of the CSC. Section 46 of Part VI provides that the Minister
may, by statutory instrument, prescribe areas in Zimbabwe within which,
from and after a date specified in the statutory instrument, the carcasses of
all livestock slaughtered for sale or export in any form whatsoever shall be
graded immediately after slaughter in accordance with this Act.
2001
Sericulture Act
[Chapter 18:18]
Sericulture
This Act provides for the registration of breeders, buyers, breeders, reelers
or twisters of silkworms with the registration officer to be appointed by
the Minister. Section 5 requires all sale or otherwise disposal of cocoons
of silkworms or raw silk to be done by registered persons. The Minister
may give written authority to a person: (a) to rear a prohibited variety of
silkworm in any area; or (b) to import a prohibited variety of silkworm
into any area; and, in granting such authority, the Minister may impose
such terms and conditions as he or she deems fit. Sections 7 to 9 concern
the control of diseases. The Minister may declare any disease or symptom
affecting silkworms to be a disease for the purposes of this Act; declare
any area in which any disease exists to be a disease area; prohibit, either
absolutely or subject to conditions, the sending or bringing of silkworms
or cocoons into any disease area, or the sending or removal from a disease
area of silkworms or cocoons; and require breeders within a disease area
to register in the prescribed manner and form. Section 9 provides for the
notification of diseases by breeders. Other provisions concern inspection
and regulation- making powers of the Minister. (Twelve sections divided into
four Parts)
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Year
Act
Sector
Description
2001
Sugarcane
2001
Marketing
This Act concerns the quality of fruit produced in Zimbabwe. Fruit means
any fruit declared in terms of section 3 by the Minister of Agriculture or
another Minister to whom the President has assigned the administration
of this Act, to be fruit for the purposes of this Act. No person shall use
the national mark prescribed for a specified fruit or a mark similar to the
national mark, unless such use is permitted under this Act (section 4).
The national mark may be used by registered growers of fruit that complies
with requisite standards of quality and packing of the fruit concerned.
An application to register as a grower shall be made under section 5 to
the Secretary of the responsible ministry. No fruit shall be exported unless
it complies with the requisite standard, and containers in which the fruit is
exported comply with prescribed requirements and bear the national mark
(section 7). The Minister may appoint inspectors for purposes of this Act
under section 8. Section 12 sets out the regulatory powers of the Minister.
(Twelve sections)
2001
Dairy
This Act provides rules for dairy produce. It is divided into eight Parts:
Preliminary (I); Cream depots, creameries and factories (II); Sale of dairy
produce (II); Registration of dairies, ice cream factories and milk depots
(IV); Regulations (V); Administration (VI); Offences and penalties (VII);
and General (VIII). Section 3 provides for the compulsory registration of
premises and the issue of registration certificates. Sections 9 and following
provide for quality control of dairy produce, e.g. certificates of proficiency
in butter or cheese making, grading and testing of cream and milk and
issue of corresponding certificates, grading of cheese, and regrading of
creamery or imported butter in certain cases. Part III contains rules relating
to packing and labelling of dairy products destined for sale. The Minister
of Agriculture may appoint a Chief Dairy Officer and Dairy Officers under
section 32. Section 37 provides for cooperation between local and national
authorities. The Schedule specifies the matters that may be regulated by the
Minister under section 29.
2001
Inputs
Farm feeds, sterilising plant and remedy are defined in section 3. One or
more registering officers may be appointed for the purposes of this Act
under section 3. No person shall sell any fertiliser, farm feed or remedy
unless registered under section 4 of this Act, it is packed in the prescribed
manner, the container in which it is sold complies with labelling and packing
requirements, and it is of the composition, efficacy, and so forth as specified
in the application for registration (section 8). An appeal may be lodged
with the Minister of Agriculture against the decision of the registering
officer (section 7). No person shall use a plant for the sterilising of bones
unless such plant is registered under this Act (section 9). Section 10 places
restrictions on the importation of farm feed or fertiliser made of bones or
other substance of animal origin. Section 14 sets out powers of inspectors
appointed by the Minister, whereas section 15 provides for the detention
and sampling of imported farm feed, remedy and fertiliser. Section 21
specifies the regulation-making powers of the Minister.
1995
Sector-wide
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Year
Act
Sector
Description
2005
National Agricultural
Strategy Framework,
20052035
Sector-wide
2007
Sector-wide
1996
Agribank
Finance
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Annexure 3
List of agribusiness and agro-industrial companies in Zimbabwe.
List of private actors
Address
Description
Seed producers
Seed Co
Pioneer
Mutual Gardens
100 The Chase West
Emerald Hill, Harare
Quton
Pannar
PO Box 99
Ruwa
Progene
1A Kent Road
Chisipite, Harare
ZFC
35 Coventry Rd
Workington, Harare
Windmill
Bryanston House
George Silundika Avenue, Harare
Zimphos
Fertiliser producer
Omnia
Fertiliser manufacturing
62 Birmingham Road
Harare
Hastt
6 Nuffield Road
Workington, Harare
Farmec
36 Birmingham Road
Harare
Rarefields
98 Kelvin Rd
South Granitside, Harare
35 Douglas Road
Workington, Harare
Zimplow
39 Steelworks Rd
Heavy Industrial Estate, Bulawayo
Fertiliser producers
Agro-chemical producers
Agricura
Mechanisation enterprises
TSA Africa
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Address
Description
Farmers World
Florimash
Irrigation
Irrig 8
Water Flo
WG Kinsey and Co
Proplastics
Exposales
National Foods
13 Foundry Road
Aspindale, Harare
United Refineries
Oil processing
Olivine Industries
Oil processing
Surface Investments
Savanna
Cigarette manufacturing
BAT Zimbabwe
1 Manchester Rd
Southerton, Harare
Cairns Holdings
1 Upton Rd
Ardbennie, Harare
Agri-Foods
33 Remembrance Drive
Kopje, Harare
Victoria Foods
83 Wollwich Rd
Willowvale, Harare
Colcom Holdings
Dairiboard
Milk processing
Transformation
Donnington
Crest Breeders
Poultry production
PO Box W99
Waterfalls, Harare
Poultry breeding
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 162
Address
Description
Cottco
1 Lytton Road
Workington, Harare
Cargill Zimbabwe
Cotton processing
Grafax Cotton
Cotton processing
SE Lowveld
Rainbow Foods
15 Ironbridge Donnington,
Bulawayo
Milling
Basic Foods
78 Silver Crescent
Kelving West, Bulawayo
Milling
Ilanga Foods
18 Market Road
Kelvin North, Bulawayo
4 George Drive
Msasa, Harare
Food processing
167 Chihombe Rd
Ruwa, Harare
Milling
Makonde Industries
Milling
Simboti Millers
Milling
Farm 19
Holland, Bulawayo
Milling
Gwai Millers
Milling
Southerton,
Harare
Sugar refining
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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Annexure 4
Public consultation workshop list of participants
By alphabetic order of institution
First name
Last name
Company
Job title
City
Marty
Daniel
AFD
Johannesburg
Jean-Michel
Debrat
AFD
Director
Johannesburg
Roger
Luhalwe
AFD
Investment Officer
Johannesburg
Assia
Sidibe
AFD
Investment Officer
Johannesburg
Michael
Ndimba
Africare
Project Coordinator
Chitungwiza
Francis
Macheka
Agribank
Harare
Clemence
Mapika
Agriculture
Research Council
Projects Administrator
Harare
Marcus
Hakutangwi
Beat
Consultant
Harare
Jean
Goncalves
Belgian Consulate
Consultant
Harare
Samuel
Kodani
Harare
Steve
Rothfuchs
CIDA
Policy Analyst
Harare
Ward
Anseeuw
CIRAD-UP
Academic
Pretoria
Eric
Etter
CIRAD
Researcher
Harare
Michel
Garine-Wichatitsky
CIRAD
Researcher
Harare
Marc
Carrie-Wilson
Commercial
Farmers Union
(CFU)
Legal Affairs
Harare
Ben
Gilpin
Commercial
Farmers Union
(CFU)
Harare
Pete
Steyl
Commercial
Farmers Union
(CFU)
Vice-President
Harare
Mark
Harper
Concern
Director
Harare
Thierry
Giordano
DBSA
Senior Researcher
Johannesburg
Samson
Muradzikwa
DBSA
Chief Economist
Johannesburg
Michele
Ruiters
DBSA
Regional Specialist
Johannesburg
Monica
Chogumaira
District
Development
Fund
Harare
Joseph
Bakkeren
European Union
Delegation
Attach
Harare
Severin
Mellac
European Union
Delegation
Harare
David
Magunda
FAO
Harare
David
Mfote
FAO
Harare
Agnes
Chaonwa
FETA Consultancy
Researcher
Harare
David
Germain-Robin
French Embassy
Cooperation Attach
Harare
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
Page 164
First name
Last name
Company
Job title
City
Dietmar
Petrausch
French Embassy
First Counsellor
Harare
Francois
Ponge
French Embassy
Ambassador
Harare
Charlotte
Stergou
French Embassy
Programme Officer
Harare
Bettina
Schoop
GIZ German
Development
Cooperation
Harare
Albert
Mapanga
IDBZ
Agribusiness Manager
Harare
Verencia
Mutiro
IFAD
Country Representative
Harare
Themios
Ntasis
IRD
Country Director
Harare
Douglas
Ncube
Mandi Rukuni
Seminar
Programme Coordinator
Harare
Pardon
Njerere
MoAMID
Harare
Lynette
Tshabangu
Oxfam
Harare
Andrew
Shoniwa
Director
Harare
John
Robertson
Robert EconomicsConsultancy
Managing Director
Harare
Prosper
Matondi
Ruzivo Trust
Director
Harare
Doug
Taylor-Freeme
SACAU
President
Chinhoyi
Philippe
Dardel
SADC
Walter
Chivasa
Seed Co
Harare
Paul
Rupende
Seed Co
Harare
Theresa
Buluzi
Stanbic Bank
Relationship Manager
Harare
Israel
Muchuchu
Triple C Pigs
General Manager
Norton
Tinashe
Kapuya
University of
Pretoria
Research Assistant
Pretoria
Jacqueline
Mutambara
University of
Zimbabwe
Lecturer
Harare
Ephraim
Chabayanzara
USAID
Harare
James
Lafleur
USAID
Economist
Harare
Blessing
Butaumocho
Country Representative
Harare
John
Laurie
Valcon
Harare
James
Hochschwender
Weidmann
Associates
Gospel
Matondi
Womens
University
Lecturer/Development Consultant
Harare
Omar
Lyasse
World Bank
Harare
Kudzai
Gumunyu
ZB Bank
Head (Agribusiness)
Harare
Jacob
Nyagweta
ZFC
Harare
Rumbidzai
Sithole
Zim Acp
Policy Analyst
Harare
Stan
Goredema
Zimbabwe
National Farmers
Union (ZNFU)
Vice-President
Harare
Charles
Mataya
Zimbabwe
Commercial
Farmers Union
(ZCFU)
Economist
Harare
Zimbabwes agricultural reconstruction: Present state, ongoing projects and prospects for reinvestment
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