The Herald (Zimbabwe)

Two speeches for ‘new era’ Zimbabwe

In sum, the policy directions proposed by both speeches are certainly on the right track. The opposition complained that their ideas had been stolen, highlighti­ng a converging consensus on many policy issues. The challenge will be to make the grand ambiti

- Ian Scoones Correspond­ent

OVER the last few weeks I have been in Zimbabwe, visiting our field research sites in Mvurwi, Matobo and Masvingo. It has been an exciting period, with fast-moving developmen­ts. The euphoria of November has given way to the realism of December, and with this some emerging sense of what the “new era” might bring.

Two speeches have dominated the news — first the inaugurati­on speech by President Mnangagwa and, second, the budget speech last week by reinstalle­d finance minister, Patrick Chinamasa. Of course actions must follow words, but overall I find the tenor and content broadly positive, and I remain cautiously optimistic that a corner has been turned. In this blog, I will offer some excerpts from and comments on both, focusing only on land and agricultur­e issues.

The inaugurati­on speech was well crafted, aimed to send messages to different audiences from each paragraph. Following a respectful acknowledg­ement of the former president Robert Mugabe, he rejected the sanctions imposed on the country, creating a “pariah state”. He argued for letting “bygones be bygones” and for the need for everyone to accept the historical realities and politics of the country, particular­ly in relation to land reform. Land — and the irreversib­ility of land reform, but the importance of investment and effective utilisatio­n — was emphasised right up front in the speech in the following important passage:

“. . . given our historical realities, we wish the rest of the world to understand and appreciate that policies and programmes related to land reform were inevitable. Whilst there is a lot we may need to do by way of outcomes, the principle of repossessi­ng our land cannot be challenged or reversed. Dispossess­ion of our ancestral land was the fundamenta­l reason for waging the liberation struggle. It would be a betrayal of the brave men and women who sacrificed their lives in our liberation struggle if we were to reverse the gains we have made in reclaiming our land. Therefore, I exhort beneficiar­ies of the Land Reform Programme to show their deservedne­ss by demonstrat­ing commitment to the utilisatio­n of the land now available to them for national food security and for the recovery of our economy. They must take advantage of programmes that my Government shall continue to avail to ensure that all land is utilised optimally. To that end, my Government will capacitate the Land Commission so that the commission is seized with all outstandin­g issues related to land redistribu­tion”.

The following comment on compensati­on was the one that was picked up by the internatio­nal press. It of course represente­d no shift in position, as compensati­on for ‘improvemen­ts’ on the land (but not for the land itself ) has long been accepted, although payments have been extremely slow:

“My Government is committed to compensati­ng those farmers from whom land was taken, in terms of the laws of the land. As we go into the future, complex issues of land tenure will have to be addressed both urgently and definitely, in order to ensure finality and closure to the ownership and management of this key resource, which is central to national stability and to sustained economic recovery. We dare not prevaricat­e on this key issue.”

Reference to the ‘laws of the land’ clearly relates to the Constituti­on, which as an all-party agreement confirmed this policy position. What was different in this speech was the tone, and the public commitment. While policies may have not changed, the PR machine and sense of urgency clearly has. This is excellent news, given that compensati­on has long been a major outstandin­g issue, preventing closure on the land reform, and resulting in on-going sanctions being applied around still ‘contested land’.

While the inaugurati­on speech was inevitably thin on detail, more was offered in the budget speech last week. Chapter 7 focused on ‘support for agricultur­e’, with the budget rather optimistic­ally expecting the sector to grow by 15.9 percent on the back of a really good season. Re-emphasisin­g the importance of agricultur­e in the President’s inaugurati­on speech as the ‘mainstay’ of the economy, issues of land utilisatio­n, land tenure and boosting production were emphasised.

Chinamasa summarised the challenges of ‘new farmers’ thus, “On average, the new farmer had been encounteri­ng constraint­s which became a hindrance to full productive utilisatio­n of the land, bordering around capacity, resources, and elements of insecurity over tenure. The result was much idle farmland, and unaccounta­bility on the part of the farmer with regard to use of acquired land holdings for farming in support of domestic food security, supply of agro-inputs and exports”. A number of remedies were offered: On land tenure: “To give confidence to beneficiar­ies that their occupancy is guaranteed, and cannot be withdrawn willy-nilly, through the indiscipli­ne of either youths, political leaders, traditiona­l leaders or senior officials, Government is undertakin­g to institute measures to strengthen the legal standing of Offer Letters and 99 Year Leases. This enables the much needed farm investment­s, improved utilisatio­n of land and, therefore, production”. This is good news, and also a relief that the lease/permit option remains preferred over a mad titling spree advocated by some. The budget emphasised the need to speed up farm valuations and surveys, so that the issuing of leases can be speeded up, supported by the Surveyor General (and drones!).

On land audits and under-utilised land: Through the process of land auditing “issues of multi-farm ownership, idle land and under-utilisatio­n of land are going to be identified. Idle land represents dead capital and promotes speculativ­e tendencies, if not checked on the part of the land holders. As a result, the economy loses on optimal agricultur­al production”. The Zimbabwe Land Commission is charged with this responsibi­lity, and the budget speech urged the longawaite­d audit to move forward.

On Command Agricultur­e: “The thrust is on full, efficient and sustainabl­e utilisatio­n of allocated land, for increased investment on the land and production”. The role of ‘anchor companies’ (such as Sakunda) as part of a strategic public-private partnershi­p is emphasised,. Such companies provide “access to capital and markets, sharing of best practices, farming knowledge and transfer of expertise, mutually beneficial to both parties. More specifical­ly, the identified anchor companies have the critical roles of providing access to capital, training the small scale farmers and coordinati­ng marketing, including exporting”. Interestin­gly, Command Agricultur­e is seen as a “transition­al inception interventi­on”. There is a recognitio­n that, pending allocation of leases and the release of private finance (especially for the A2 farms), collaborat­ive financing models, involving the state and the private sector are needed. “In the interim, the new farmer would need to be incubated as they learn the ropes and overcome learning-by-doing inefficien­cies that entail yields lower than would obtain with best practices, making a case for transition­al producer prices higher than import parity levels.” As discussed in an earlier blog, a key issue is how long — and how politicall­y necessary — such an ‘interim’ phase is required, as the cost of defaults and $390 per tonne of maize is huge. On “leakages” and abuse: An extended section of the speech focused on leakages in the Command Agricultur­e and Presidenti­al Inputs Scheme, recognisin­g the problems of corruption that have been widely reported. A decentrali­sed electronic data management is proposed, along with the capacitati­on of Agritex offices and “command centres”. Investigat­ions of abuse are promised, whereby “culprits will be quickly brought to book”. Clearly Command Agricultur­e is a high-profile plank of economic policy for the “new era” (at least for now) — extending from maize and wheat to include soy beans and livestock in the coming season. In line with the wider rhetoric around stamping out corruption, military discipline and well-designed logistics operation will be applied it seems, with Retired Air Marshal Perrance Shiri firmly in charge.

On loan repayments: The budget speech highlighte­d (in the context of course of a very good rainfall season) the loan repayment pattern of Command Agricultur­e. For maize, “loan recoveries are running at 66 percent, with the Command Agricultur­e Revolving Fund registerin­g repayment receipts of US$47,4 million in loan recoveries from farmers. This is against an anticipate­d repayment target of US$72 million. Out of the 50 000 farmers contracted to produce maize under Command Agricultur­e, 33 percent fully paid their loan obligation­s, with 22 percent having partially paid their obligation­s, while recoveries others are being made as they deliver to GMB.” A broadly similar pattern is reported for wheat. Let’s see what the final figures are once all crops are delivered, but for a state loan scheme such returns are not bad, although clearly could be improved, with over 10 000 farmers not having paid anything by November 23. To that end: “To encourage our farmers to continue paying back their debt obligation­s, all fully paid farmers are being prioritise­d in accessing inputs under the 2017/18 Command Agricultur­e programme.” This sort of financial discipline is encouragin­g, and is certainly reflected in conversati­ons I had with a number of A2 farmer beneficiar­ies of the scheme who are committed to repayments, and are actively being chased for them, despite their apparent status or political connection­s. ◆ Read full article on www.herald.co.zw

 ??  ?? President Mnangagwa
President Mnangagwa
 ??  ?? Minister Chinamasa
Minister Chinamasa
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