http://22ND POST-CABINET PRESS BRIEFING (2022) 1.pdf (veritaszim.net)

July 26, 2022

Establishment of the Innovation Centre for Dryland Agriculture in Chivi district has reached 65% of completion

Duty-free Boost for Agriculture

As the Government continues to implement a cocktail of measures to boost agricultural production, the Zimbabwe Revenue Authority (Zimra) has listed import duty and Value Added Tax (VAT)-free agricultural equipment, while the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development has introduced a crop insurance product for Pfumvudza/Intwasa beneficiaries.

2021/2022 Farming season

As at the 24th of October 2021, Grain intake stood at 1 164 274 metric tones, comprising 83 684 metric tonnes of wheat and 1 080 590 metric tonnes of maize, soyabeans and traditional grains. On CBZ Agro-Yield/Command Agriculture Programme preparations for the summer cropping season, CBZ Agro-Yield has 18 000 metric tonnes and 15 000 metric tonnes of basal and top dressing fertilizers, respectively. Seed is adequately available. Farmers can promptly collect seed from SeedCo and K2. CBZ is in the process of finalizing inputs supply agreements with ARDA Seeds, Syngenta and Torcek. Regarding the planting of tobacco, some 105 528 farmers registered for the 2021/22 tobacco season compared to 102 098 farmers that had registered at the same time last year, representing a 3% increase. The area planted is 28% above that planted last year, because of an enlarged irrigated crop. Seed cotton marketing tailed-off with very few common buying points still to conclude transactions. Seed cotton deliveries to the six contractors have reached 132 132 384 kg compared to 83 059 898 kg last year, representing a 59.1% increase. Regarding the Presidential Climate-Proofed Cotton Pfumvudza/Intwasa Scheme for the 2021/2022 season, the trained farmers were 36% of the targeted 520 000 growers.

Upward reviews of Wheat prices

Cabinet considered and approved proposals for the upward review of the producer price of wheat. Cabinet has approved an upward review of the wheat floor producer price to ZW$55 517.69 per mt for ordinary grade wheat at a 15% return on investment, and ZW$66 621.22 per mt for premium grade wheat during the 2021 marketing season. This will enable farmers to go back into production. The upward review of the producer prices is being necessitated by changes in input prices which in turn resulted in higher production costs.

Zimbabwe seeks Z$60 Billion in private institutions through purchasing grain.

Government releases ZWL20billion to Agricultural Marketing Authority by Treasury to kickstart payments to farmers and is working to secure ZWL60 billion to purchase maize from farmers

Launch of Agricultural Finance Corporation Holdings

Government launched the Agricultural Finance Corporation (AFC) Holdings Ltd, at Hurudza House in Harare. AFC Holdings (formerly Agribank) is a parent company which holds four other companies focused on resourcing Agriculture.

170 Mash East Agritex officers receive motorcycles

At least 170 (Agriculture Extension) Agritex workers in Mashonaland East province received motorcycles and will soon get satellite-linked tablets to help them execute their duties efficiently.

Roadmap to support fertilizer industry

The Government is coming up with a strategic roadmap to significantly reduce fertiliser imports in the next five years through capacitating local companies. The Five-Year Fertiliser Import Substitution Roadmap, will be largely focused on ramping up production at Sable Chemicals, the country’s sole ammonium nitrate producer and Chemplex Phosphates. An investment of nearly US$40million would see Sable Chemicals increasing output to 240 000 tonnes of AN by 2024 and this would reduce imports from the current 220 000 to 10 000 tonnes, according to the five-year strategic roadmap.

Agriculture Marketing Authority restructured

A new board has been appointed at the Agriculture Marketing Authority (AMA); it has begun reorienting the institution’s strategic focus in order to turn the key parastatal into a driver of innovation within the agriculture sector from being primarily a collector of levies from farmers. It has plans to facilitate the structuring of innovative financial instruments to enable smallholder farmers with no collateral to access finance and investment in a new strategy aimed at modernising subsistence agriculture. 

Over 105k tonnes of wheat delivered

Farmers have harvested and delivered more than 100 000 tonnes of wheat from the 2020 winter cropping season to the Grain Marketing Board (GMB), eclipsing the 90 000 tonnes delivered for the whole of last year. GMB is receiving over 4 000 tonnes of the cereal per day, with the parastatal’s depots now operating daily. Zimbabwe is projected to harvest over 250 000 tonnes of the grain — enough to cover nine months’ supply and save the country over US$100 million through import substitution.

Support of the Agricultural Recovery Plan

The Minister of Industry and Commerce informed Cabinet that Sable Chemicals has accessed US$1.4million in foreign currency through the auction floor system which is sufficient to import Ammonia to produce 5 500 metric tonnes of AN fertilizer. The company has produced 2700 metric tonnes of AN valued at US$1.350 million. The fertilizer will be supplied to CBZ Agroyield, ZFC and Omnia. Cabinet noted that the project will support the Agricultural Recovery Plan through the provision of affordable local fertilizer, and ultimately enhance production and reduce reliance on food imports. 

One-stop permit processing , for ease of doing business

The Lands Agriculture, Water and Rural Resettlement Ministry has come up with reforms that have resulted in the establishment of one-stop permit processing at head office aimed at improving the ease of doing business in the sector and to promote competitiveness.

Provision of 5,000 motor bikes to Agricultural Extension officers across the country

The Government has also sourced 5 000 motorbikes for agricultural extension officers so that they are mobile to support farmers with proper farming methods to increase yields.