Sugar law review a step towards trade justice
The question of trade justice continues to gain traction in Zimbabwe as it is seen as one of the effective ways of promoting social and economic equity in production, particularly in the agriculture sector.
Agriculture is regarded as the nerve center and lifeline of the Zimbabwean economy. Zimbabwe has 4,130 000 hectares of arable land with 25% being cultivated using manual draught power and animal.
This issue has been largely blamed on trade injustice within the agricultural sector which systematically relegated the masses in the value chain.
The hegemony, elitism, and monopoly in the agricultural value chains continue to exclude the ordinary citizens who on the other hand are the beneficiary of the fast-track land reform programme (FTLRP) of 2000).
The monopoly in agricultural value chains is visible in tea, banana and avocado production and more explicit in sugar production.
This monopoly is sustained by a myriad of legal, regulatory and institutional frameworks which are outdated.
The majority of these legal frameworks were enacted during the colonial administration, in pursuit of the repressive objectives of a settler-dominated, racist capitalist economy that perpetuated the repression of the black majority.
In this regard, the Sugar Production Control Amendment Act served to legitimate the channelling of wealth into the hands of the elite and ring-fence sugar production against the black majority.
Therefore, it is against this background that the Sugar Production Control Amendment Act is necessary for fostering trade justice by confronting the hegemony in the production of sugar through inclusive value chains.
Currently, Tongaat Hullets Zimbabwe (Hippo Valley and Triangle) enjoys a monopoly of sugar production in the country. The Sugar Production Control Act of 1964 prohibits other private players from investing in sugar production as it clearly states that: “No person shall grow sugar cane for the purpose of delivery to a factory unless he is licensed as a grower”.
Key informant interviews with farmers from Mkwasine, Chiredzi, Triangle and Mwenezi indicate that sugar production is a closed sector where the vested interest of multinational corporations takes precedence over national interest.
One key informant noted that “the deep politics surrounding the Tongaat Hullets Zimbabwe operations should never be underestimated, as they go beyond personal politics to national politics and can easily trigger bilateral friction”.
Nevertheless, the interests of Zimbabweans should always come first.
The amendment of the Sugar Production Control Act is a positive stride towards correcting inherited colonial imbalances ensuring the success of the National Development Strategy 1.
It is in the best interest of the country for the act to be amended to ensure that viable value chains that break Tongaat Hullets monopoly are established for effective job creation and wealth transfer.
Social and economic equity in sugar cane production is imperative in fostering trade justice.
The victory in breaking this monopoly will be guaranteed by not only declaring sugar a strategic crop but by seeing to it that robust measures that promote competition among investors are put in place.
Zimbabwe Coalition on Debt and Development