Private sector in Us$1bn drought move
A Harare-headquartered business organisation with a footprint across Southern Africa has announced plans to invest US$1 billion in expanding food imports in Zimbabwe.
is move comes amidst a severe El Niño-induced drought, which has placed approximately 2,7 million people to the brink of starvation in the country.
Africa South Business Group (ASBG), which is chaired by Eddie Cross, a former advisor to President Emmerson Mnangagwa, who once led the Cold Storage Commission, said it planned to import basic commodities, including maize for 14 months to fight the devastating impact of the drought.
Last month, Mnangagwa declared the drought a disaster, emphasising that Zimbabwe urgently needed US$2 billion to address the crisis.
e situation has been marked by diminished yields and soaring temperatures. Official data indicate that the drought has decimated 80% of Zimbabwe's crop this year.
State media reported last month that drought conditions had led to the deaths of 9 000 cattle.
At least five other Southern African countries have also been impacted by the drought. However, they anticipate relief through imports from the regional powerhouse, South Africa, which has not experienced the same level of impact.
In a five-page document submitted to Mnangagwa titled e El Niño drought
2023/2024 and the impact on food security and how to mitigate this situation sent to stakeholders on March 14, ASBG said in its package, it will import 1,4 million tonnes of maize.
At least US$518 million would be required to import maize.
“Apart from wheat, all basic foods will be under pressure in the 2024/2025 year because of the character of the current wet season,” ASBG said in the paper, which was availed to the Independent.
“This will require large imports, which will put pressure on both financial and logistical resources. But in addition, it is going to be necessary to supplement the food needs of the great majority of the rural population and this will involve many hundreds of thousands of families.
“How this is going to be achieved depends on how we manage the supply and distribution of basic foods and provide for access by vulnerable families, especially in rural areas.
“This paper seeks to provide some answers to these questions for consideration by the relevant authorities. The private sector is already importing these products at this level of activity and demand and do not require any support from government.
“The firms involved say that they have to capacity to manage these imports and purchases and to provide logistics using both rail and road,” it added.
ASBG said small scale and commercial farmers were expected to produce 600 000 tonnes of maize this season, with the deficit to be imported from South Africa.
“Based on the most recent estimates supported by satellite imaging, we expect the current maize crop to yield the following tonnages: - small scale for subsistence 420 000 tonnes, large scale commercial farmers 180 000 tonnes,” the paper reads in part.
“This is the equivalent of 100 000 tonnes of maize imports per month at approximately 40 000 tonnes of yellow maize for stock feed and 60 000 tonnes for human consumption.
“All supplies are expected to come from South Africa and current imports are running at this level already. The private sector will undertake this for the next 14 months and is expected to be able to meet domestic demand in full, from this programme,” it added.
ASBG said the state-run Grain Marketing Board has estimated grain reserves of about 145 000 tonnes when the paper was prepared.
However, the reserves, according to the paper are “not all usable”.
But yields in South Africa will also be reduced, the paper further states.
“Traditionally Zimbabwe imports maize from Zambia, and Malawi, with occasional imports from Mozambique. All of these states are expected to import from South Africa to meet demand,” the paper highlights.
“The South African crop, which is traditionally 50% yellow, is likely to be smaller than recent years (in 2023, it was 16,23 million tonnes with five million tonnes surplus) but is still likely to be over 14 million tonnes, in total, both yellow and white.”
GMB’S wheat stocks, according to the document, stood at 240 000 tonnes when it was presented to government, with demand expected to soar to 670 000 until October 25.
According to its website, ASBG was established by a group of leading Zimbabwean business people in 2021.
“ASBG was formed with the mission of advancing bilateral commercial and political relations between the states of Southern Africa and the rest of the world,” the Website states.
“By leveraging its extensive network in the Southern African Development Community, the ASBG provides unparalleled access to senior decision-makers in business and government with the aim of deepening economic and business relationships.”