View
3
Download
0
Category
Preview:
Citation preview
Food Agriculture and Natural Resources Policy Analysis Network
IN-COUNTRY STAKEHOLDER WORKSHOPFOR ZIMBABWE FANRPAN NODE
Funding of this publication was made possible by USAID
Harare International Conference Centre, ZimbabweSeptember 2000
Copyright FANRPAN 2002
ISBN 0-7974-2473-3
Published By: Food Agriculture and Natural Resources Policy Analysis Network of Southern AfricaP O Box CY 2765, Causeway, ZIMBABWETel: 263-4-792348/50Fax: 263-4-794311E-mail: policy@fanrpan.orgWebsite: http:// www.fanrpan.org
Proceedings report compiled by: Southern African Regional Institute for Policy Studies (SARIPS).
Editing and production: Mabel Ndakaripa Hungwe
Origination and Printing: Sable Press (Pvt) Ltd
Food Agriculture and Natural Resources Policy Analysis Network
P.O. Box CY 2765, Causeway, Harare, ZimbabweTel: 263-4-792348/50 Fax: 263-4-792411 E-mail: policy@fanrpan.org Website: http://www.fanrpan.org
Food Agriculture and Natural Resources Policy Analysis Network
(FANRPAN)
The origins of the Food, Agricultural and Natural Resources Network (FANRPAN) for Southern
Africa can be traced to the first Conference of Ministers of Agriculture of Eastern and Southern Africa
held in Harare in April 1994. At the meeting Ministers agreed to support the establishment of a
regional agricultural policy network to enhance the capacity for policy formulation and analysis in
the region.
While the original understanding of the geographic coverage of the network was the whole of Eastern
and Southern Africa, a subsequent meeting proposed to establish separate networks for Eastern and
for Southern Africa. At a follow-up of a meeting held in July 1994, SADC Ministers of Agriculture
approved the establishment of an agricultural policy network for Southern Africa. FANRPAN was
then launched in July 1997.
FANRPAN's mission is to co-ordinate, influence and facilitate policy research, analysis and dialogue
at the national, regional and global levels in order to develop the Food, Agriculture and Natural
Resources sector through networking, capacity building and generation of information for the benefit
of all stakeholders in the SADC region.
The FANRPAN objectives are to:
� Promote appropriate agricultural policies in order to reduce poverty, increase food security and
enhance sustainable agricultural development in the SADC region.
� Improve policy analysis, research and formulation of priority SADC agricultural research
themes.
� Develop human and institutional capacity for co-ordinated dialogue among stakeholders.
� Improve policy decision-making through the generation, exchange and use of policy related
information.
(i)
(ii)
TABLE OF CONTENTS
Abbreviations .......................................................................................................................................... (iii)
Foreword ................................................................................................................................................. (iv)
Introduction ................................................................................................................................................ 1
Opening SessionWelcoming Remarks Sam Moyo.............................................................................................................. 4
Opening Address Hon. Joseph Made...................................................................................................... 6
OVERVIEW OF AGRICULTURAL MARKETING AND TRADE: PROBLEMS
AND PROSPECTS
ZIMACE, Its Formation and Role in the 'Liberalised Local Market' and Trade
in the Regional Market ............................................................................................................................... 9
Input Supply: An Overview of the Fertiliser Industry ........................................................................ 12
Discussion................................................................................................................................................... 15
Stakeholder and Sector PresentationsMajor Constraints, Threats and Opportunities within the Indigenous Farming Sector ............... 17
An Overview of Agricultural Commodities Traded by Zimbabwe .................................................. 21
Agricultural Input Policy Analysis......................................................................................................... 23
Institutional and Administrative Issues on Zimbabwe's Agricultural Imports and Exports ........ 25
Report back from Thematic Group DiscussionsIntroduction ............................................................................................................................................... 27
Commodities (Group 1)............................................................................................................................ 28
Input Supply (Group 2) ............................................................................................................................ 30
Institutional and Administrative Issues (Group 3) .............................................................................. 32
Synthesis of the Issues and Closing SessionWorkshop Synthesis Reneth Mano........................................................................................................ 36
Summary of Recommendations .............................................................................................................. 36
Areas for Further Research ...................................................................................................................... 37
Closing Remarks Sam Moyo................................................................................................................... 38
Appendices1 Workshop Programme .................................................................................................................... 40
2 Participant List................................................................................................................................. 41
(iii)
Abbreviations
ACP African Caribbean and Pacific countries
CFU Commercial Farmers Union
COMESA Common Market for Eastern and Southern Africa
CSC Cold Storage Company
EPZ Export Processing Zones
ESAP Economic Structural Adjustment Programme
EU European Union
FANRPAN Food Agriculture and Natural Resources Policy Network
FAO Food Agriculture Organisation
GMB Grain Marketing Board
ICFU Indigenous Commercial Farmers Union
NFTP National Farmers Training Programme
NGO Non Governmental Organisation
SADC Southern African Development Community
SAFEX South African Futures Exchange
SAPES Trust Southern Africa Political and Economy Series Trust
SARIPS Southern African Regional Institute for Policy Studies
TRIPS Trade-Related Aspects of Intellectual Property Rights
UDI Unilateral Declaration of Independence
UNDP United National Development Programme
USA United States of America
USAID United States Agency for International Development
UZ University of Zimbabwe
WTO World Trade Organisation
YCFE Young Commercial Farmers Education
ZFC Zimbabwe Fertiliser Company
ZFU Zimbabwe Farmers Union
ZIMACE Zimbabwe Agricultural Commodities Exchange
ZIMPREST Zimbabwe Programme For Economic and Social Transformation
(iv)
Foreword
The FANRPAN network operates its program of action through in-country nodes. The country
nodes implement in-country stakeholders consultation meetings to define agenda, policy research
and analysis, advocacy and training. Specifically, the functions of the nodes are to: Coordinate the
regional network agenda at national level through organizing national stakeholder dialogue forums;
Manage action-oriented research activities in the country; Coordinate advocacy activities; Manage
training, information exchange and communication at national level. The nodes have initially been
established in eight SADC countries of Botswana, Malawi, Mozambique, Namibia, South Africa,
Tanzania, Zambia and Zimbabwe.
FANRPAN nodes held in-country stakeholder consultations to define the research agenda.
Participants to the stakeholder consultations were drawn from the Ministries of Agriculture, Non-
governmental organisations, farmer organizations, parastatals, agricultural institutions, universities,
research institutions and extension and private sector representatives. Funding of the in-country
stakeholder consultation was made possible by USAID through a World Bank facility, SPAAR.
The first in-country stakeholder consultation in Zimbabwe was held on 19 September, 2000. The
consultation was organized by the FANRPAN Zimbabwe node, Southern Africa Regional Institute
for Policy Studies (SARIPS) (now called SAPES Trust). Fifty two participants from government,
private, NGO's and farming organisations attended the session. The consultation stressed the need
for appropriate marketing strategies and relevant policies as the driving forces in the revitalisation of
the agricultural sector. Issues highlighted were:
The lack of relevant market information
The impact of the land reform policy
Shortages of raw materials in the manufacture of fertilizers
The need for a coordinated approach to marketing research
The impact of the COMESA free trade arrangement and SADC protocol
The need to strengthen indigenous players though policy, extension and technology transfer.
Mabel N. Hungwe
FANRPAN Communication Specialist
�
�
�
�
�
�
Page 1
Introduction
thThe FARNPAN Stakeholder Workshop was held on 19 September 2000 at the Harare International
Conference Centre. Participants were drawn from academia, officials of the Ministry of Lands,
Agriculture and Rural Resettlement, and representatives of non governmental organizations, farmer
organizations and stakeholder organizations in Zimbabwe.
During the opening remarks, Professor Sam Moyo, Chairperson of the Zimbabwe Node noted that, in
1994, Ministers of Agriculture from Eastern and Southern Africa had agreed on the need to bring
together competent professionals to develop policy and to provide the SADC Food Sector with
guidelines. As a result, the Food Agriculture and Natural Resources Policy Analysis Network
(FARNPAN) was launched in 1997 in accordance with the following principles:
Involvement of all stakeholders i.e. private sector, public sector, civil society or donors,
towards broad participation with responsibility;
A lean and focused administrative structure with an emphasis on accountability,
transparency and quality;
Operational flexibility.
Five themes were identified as key focus areas for the FARNPAN network:
Poverty related issues of food security and rural economic growth;
Trade arrangement and tariff and non tariff barriers;
Issues of natural resource management, including land tenure, property rights and
biodiversity;
Economic reforms, both externally conceived structural adjustment programmes and
homegrown reforms;
Institutional reforms, including those concerning intellectual property rights.
The FANRPAN Zimbabwe Node workshop was officially opened by the Minister of Lands,
Agriculture and Rural Resettlement, the Honourable Joseph Made, who stressed the need for
appropriate marketing strategies and relevant agricultural policies as the driving forces in the
revitalization of the agricultural sector in Zimbabwe. The Minister further elaborated the role of land
reform in this regard.
In order to provide an overview of the problems and prospects for agricultural marketing and trade,
two presentations were given. The first presentation was from the Zimbabwe Agricultural
Commodities Exchange (ZIMACE), while the second was on Input Supply and emphasised the role
and constraints of the fertiliser industry.
�
�
�
�
�
�
�
�
Page 2
Various stakeholder groups and sectors made presentations at the workshop as background
information for the group presentations.
The Zimbabwe node would like to acknowledge assistance from the following stakeholders in
making the workshop as success: Minister J Made, Ministry of Lands, Agriculture and Rural
Resettlement, Professor Sam Moyo, Mr Ian Goggin, Mr Baxter Mawoza, Mr Nokwazi Moyo, Mrs
Barbara Mathemera, Dr Vincent Gwarazimba, Mr David Mfote,Dr Reneth Mano, Dr Chris Sukume,
Mr Godfrey Mudimu, Mr Friday Simango and the University of Zimbabwe, Department of
Agricultural Economics and Extension for providing technical assistance in making this workshop
possible.
OPENING SESSION
Section One
Page 3
Page 4
WELCOMING REMARKS By Professor Sam Moyo, Director, SARIPS
Professor Moyo noted that this first FANRPAN stakeholder consultation represented the first major
attempt to give the network a direction.
Broadly, the FANRPAN Network seeks to inform the policy making process at all levels, including
policy analysis, implementation and monitoring and evaluation. It will operate proactively as a
mechanism for strategic thinking and policy reflection in Zimbabwe and the region. The specific
objectives of the Network are to:
Provide a forum for policy dialogue and advocacy among the scattered stakeholders;
Improve policy research analysis, formulation and monitoring around key themes and to
improve the quality and focus of such work;
Develop strengthened human and institutional capacity for policy analysis and research; and,
Develop a research agenda and strategies appropriate to the country and the region.
The objective of the first Stakeholder Workshop was to develop strategies as a group which would
guide the Network and enable the secretariat to, plan their work and raise resources. In light of this, a
number of questions were raised:
How the network could facilitate and mobilise human and financial resources;
The need to organize appropriate policy briefs and monitor and assess their impact;
The need to facilitate information sharing and the communication of results through the
development of an information culture;
How to build skills and develop institutions that would complement those already existing;
The need to monitor the development of FANRPAN, including the development of a
database information system to track the needs and activities of Network members and
international players.
FANRPAN would operate along the following themes:
Poverty related issues of food security and rural economic growth;
Trade arrangements - tariff and non tariff barriers;
Issues of natural resource management, including land tenure, property rights and
biodiversity;
�
�
�
�
�
�
�
�
�
�
�
�
Page 5
�
�
Economic reforms, both externally conceived structural adjustment programmes and
homegrown reforms;
Institutional reforms, including those concerning intellectual property rights.
The stakeholder workshop placed specific emphasis on the theme of trade arrangements and tariff
and non tariff barriers. There is tremendous opportunities for expansion and the creation of new trade
in the region and it was important for the network to mobilise resources for interaction between civil
society, the private sector and government.
Professor Moyo expressed the hope that all present would follow through with the initiative and
assist in strengthening the FANRPAN network.
Page 6
OPENING ADDRESS Honourable Joseph Made, Minister of Lands, Agriculture and Rural Resettlement
It gives me great pleasure to be invited, not only as guest of honour, but also to share my ideas and
participate as much as possible by highlighting some of the key issues of concern in the agricultural
sector in the sphere of promoting trade and expanding our exports at this juncture of our historical
development. It is most encouraging that the Zimbabwe chapter of the Food, Agriculture and Natural
Resources Policy Analysis Network (FANRPAN) is under the stewardship of SARIPS, which is
already operating in the region and promoting development through a multi-pronged approach of
sharpening analytical skills for building policy analysis and capacity building through its research,
training and dialogue activities that cover areas such as governance, peace and security, economic
policy, gender, social policy, environment and land reform in Southern Africa. This workshop is,
therefore, part of the broader SARIPS dialogue activities involving stakeholders, academics, civic
organisations and policy makers drawn from different backgrounds.
The theme of this workshop on Agricultural Trade with Specific Focus on the Region is very
appropriate as it seeks to bring together the operatives on the ground to identify the problems they
face on a daily basis and map out strategies to solve pertinent problems affecting agricultural trade in
Zimbabwe and the region. As you are all aware, the Economic Structural Adjustment Programme
(ESAP) that our government embarked upon in the early nineties has impacted both positively and
negatively on the Zimbabwean economy and regional agricultural trade. There has not been any
follow up based on stakeholder consultation to take stock or seek new strategies to invigorate and
improve on this policy framework. This consultative forum is an important step to collectively
address issues affecting agricultural trade, identify what has been done and not done, and assess
performance now and for the future.
As we undergo a rapidly changing environment we need to look at the overall regulatory framework
and the performance of key players across the board. We need to come up with an agenda that offers
us scope to move forward by addressing policy constraints, implementation mechanisms and
evaluation of agricultural trade in Zimbabwe and the region. Gone are the days when we could seek
to address our trade regime by looking at input supply only. We need to look at the demand side of the
equation and the willingness of our neighbours to cooperate with us to ensure our survival. This is,
perhaps, a strong link which FANRPAN introduced, through networking across the region and
seeking common strategies for closing the gaps and building regional capacity. I understand that the
FANRPAN project is a regional initiative that has nodes in eight SADC countries. It brings together
technocrats from the public, private and non governmental sectors involved in advocacy issues in the
agricultural sector in Zimbabwe and the region.
Page 7
The Zimbabwean economy is agro-based and, indeed, agriculture is the main foreign currency earner
for this country. Appropriate marketing strategies and relevant agricultural policies are the driving
forces in the revitalization of the agricultural sector in Zimbabwe. Zimbabwe has to remain the bread
basket for the region but this can only be sustained if we retain our competitive edge on the domestic,
regional and international markets. A number of factors have to be addressed for this situation to
obtain. The issue of land reform and increased agricultural productivity by all agricultural
participants, be they small, medium or large-scale farmers needs to be addressed as a matter of
urgency.
The land reform programme is a major issue in the definition, characterization and determination of
the performance of the agricultural sector in Zimbabwe and the whole of Southern Africa and
beyond. Government's policy on land reform takes centre stage at this point in time, as it seeks to
redress the historical land imbalances through the 'fast track' land resettlement model. It is not
surprising that this policy has its critics and opponents, some of who have vested interests in the
status quo, which are not beneficial to the disadvantaged majority. The issue, as far as we see it, is how
to best address an historical injustice that has been on the sidelines for too long and cannot be ignored
for the future peace and stability of the nation and region.
A second related problem is the fundamental issue of increasing our foreign exchange earnings, to
avoid the negative impact on trade, importation of new machinery and inputs for the agricultural
sector. The agricultural sector has always played a key role in attracting foreign currency to the nation
and this should continue into the next century. We cannot ignore the trade protocols that play a
fundamental role in regulating the trade regime in the region. As stakeholders, we need to ask
ourselves if we are sufficiently acquainted with these protocols and if they are of benefit to our
farmers. The regulatory system that is evolving has put a major squeeze on informal trade for
instance. Is this the direction we want to move in when a broad section of our communities are
involved in informal cross border trade? How can we formalize this trade to the benefit of both the
informal and formal sectors in Zimbabwe and the region?
Regional integration of the SADC states has also brought enormous challenges for agricultural trade
in Zimbabwe and the region. Issues pertaining to tariff and non tariff barriers, quotas, quality of our
agricultural products, incentives, phytosanitary regulations have tended to put in place more
controls and restrictions to promotion of trade in the region. In whose interests do these measures
work? As stakeholders, it is time for us to identify and improve on the regime of controls by directly
interfacing with our counterparts and to bring these pertinent issues to policy makers. To all intents
and purposes, we have been putting in place measures that hurt us and restrict our potential growth
to expand into international markets.
Page 8
Indeed, all other regulatory instruments pertaining to agricultural trade in Zimbabwe and the region
have to be constantly scrutinized so that they do not impact negatively upon this strategic sector of
our economy. Therefore, it is appropriate that this forum come up with concrete and relevant
recommendations for policy making, not only in Zimbabwe, but also in the entire SADC region.
This stakeholder workshop should put in place a beginning for consolidating a stakeholder
perspective of the agriculture sector at a time when we are faced by numerous problems, which we
are capable of resolving. I wish you successful deliberations and hope that you will come up with an
agenda that will positively impact on Government, stakeholders and other players. It is my sincere
hope that the ideas generated at this important forum will be synthesized and forwarded to my
Ministry as policy making guidelines for implementation. I have no doubt of this, given the diverse
wealth of experience and perspectives from various stakeholders gathered here who are capable of
generating new ideas and recommendations will assist in reviving the agricultural sector.
I urge you all to feel free to interact openly with each other as you exchange ideas that will benefit
agricultural trade in Zimbabwe and the region. With these few remarks, I would like to officially
declare this workshop open.
Page 9
ZIMACE, Its Formation and Role in The 'Liberalised Local Market' and Trade in the Regional Market By Mr Ian Goggin
Ian Goggin, Managing Director of ZIMACE gave the background to the Zimbabwe Agricultural
Commodities Exchange (ZIMACE). He explained that it originated in the 1990s when, in the context
of the Economic Structural Adjustment Programme (ESAP), Government indicated that the
agricultural marketing boards were likely to be dissolved. The general liberalisation of the
agricultural market was an adjunct to this. The need to be able to buy and sell without price controls
led to discussions with experts from various parts of the world, resulting in the creation of an
agricultural commodities exchange. The major players and financial backers at the beginning were
the Commercial Farmers' Union (CFU) and a private company, Edwards and Company.
A private company was formed employing a small number of brokers and began to trade in a manner
described as 'semi-transparent'. However, the volume of trade was too great for this type of
arrangement and the company eventually involved other players through selling of shares.
The exchange opened in March 1994 with the CFU and Edwards and Company as the major
shareholders, holding eight and seven seats respectively. CFU has since divested four of its seats and
these are now held by the major commodity associations. Edwards and Company has retained only
one seat. There are now 23 members of ZIMACE including the Grain Marketing Board (GMB), two
financial institutions, millers, traders and others.
The process of establishing the exchange determined that strict rules of guidance were needed in
order to create an orderly market that encouraged production and rewarded quality. It was necessary
to introduce an exchange that exhibited integrity, was available to all the people of Zimbabwe and
was acceptable to international traders. This was expected to benefit both producers and consumers
on the basis of free market principles.
ZIMACE was the first agricultural commodity exchange in Southern Africa. Zambia's commodity
exchange opened in June 1994 whilst South Africa opened in 1995. It was noted that South Africa's
exchange has been successful and that in East Africa, Uganda's exchange still has some potential to
succeed. The commodity exchanges in Zambia and Kenya have not been successful. In this context,
OVERVIEW OF AGRICULTURAL MARKETING
AND TRADE: PROBLEMS AND PROSPECTS
Page 10
the importance of ZIMACE continues to grow internally, regionally and internationally. This is
reflected by the number of visitors to the ZIMACE website.
However, a continued lack of relevant market information has had a significant negative impact on
the agricultural market. The information that is available is frequently inaccurate or distorting. This is
exacerbated by a lack of support from the larger market based institutions and the fact that some
ZIMACE members are concurrently active in conducting trade off the floor.
There is a need to distinguish between the roles of a broker and a trader. Traders buy in bulk at a cheap
price and on-sell the commodity while a broker does business on behalf of a client and takes a
percentage for their services. Their interest, therefore, is in gaining the best deal both for the client and
themselves. With respect to maize, for example, prices have been low in 2000. This is partly because of
market forces, influenced by an oversupply of maize in the region but it can also be attributed in part
to one major trader forcing down the price in order to on-sell at a good profit.
The ZIMACE board has recently enforced a rule making it compulsory for members to trade across its
floors and all but three members have now elected to become broking members. These three must
operate through a member broker when they wish to trade on the ZIMACE floors.
ZIMACE currently provides both a spot and a forward market but is unlikely to take up dealing in
futures. It was suggested that the most practical course would be for the South African Futures
Exchange (SAFEX) to adopt this function on behalf of the region. The suggestion that ZIMACE be
adopted as a regional spot and forward market has not really been taken up at this stage but ZIMACE
hopes that this would create great opportunities in the region. This may most likely to be picked up by
the tobacco industry. Considerable expertise has been realised and some of the ZIMACE brokers are
now operating both on SAFEX and over the Internet.
There are currently eight different contracts on the Zimbabwe exchange for specific commodities and
one representing over 60 small commodities. Each contract contains details of quantity, quality, risk,
price and packaging. Arbitration is carried out in-house and its effectiveness has resulted in a decline
in the number of cases being brought because clear precedents have been set.
The GMB, a major player, has dual roles. The first is to exploit commercial opportunities on its own
behalf. GMB also acts as a strategic grain reserve for the government. This leads to a situation in which
the price of maize is effectively set by Government and is above the natural market price. There has
been some difficulty in separating these two functions as the GMB is also the buyer of last resort.
Page 11
Trade volumes on ZIMACE have increased over the years and the value of the annual trade has risen
from US$ 1.38 million in 1994/5 to US$253.2 million in 1999/2000. ZIMACE is in the process of
introducing the ZIMACE Silo Certificate which will act as proof of ownership of a commodity and
thus offer security. This will be accepted by financial institutions as the basis for loans and it is
envisaged that a secondary money market could evolve from such a document.
In terms of regional trade, the opening up of the market was needed to create opportunities for
Commodities. To improve transparency and openness in agricultural trade, Mr Goggins suggested
the need to:
Liberalise the market entirely, as opposed to the current situation in which it is semi
liberalised and, therefore, open to abuse;
Ensure that decisions taken are adhered to so that, for example, permits are not issued and
then later withdrawn, as this is bad for the country's reputation.
�
�
Page 12
INPUT SUPPLY: AN OVERVIEW OF THE FERTILISER INDUSTRYBy Mr Baxter Mawoza
The fertiliser industry is important to Zimbabwe for a number of reasons:
60 percent of the population is engaged in agricultural production;
Agriculture provides 22 percent of the gross domestic product;
Zimbabwe is one of the top three tobacco exporters in the world.
Fertiliser therefore plays a vital role in farming production. Its use in agriculture has increased in
recognition of the need for higher yields. Zimbabwe provides a typical example of this. Since
Independence, 50 percent of the growth in agricultural output has been attributable to fertiliser use.
A number of factors affect the supply of this important product. Some of these were logistic issues
arising because many of the inputs of the fertiliser industry are imported. Other logistic problems
were:
Discharge delays at ports, noting that the natural port to use would be Beira but its low
capacity forces Zimbabwean importers to use other distant ports such as Durban;
Insufficient rolling stock;
Penalties charged when off loading from ships is slow;
High transport and time costs involved in bringing goods overland from South Africa; and,
Congestion at ports.
There have also been financial constraints in the procurement of fertilizer. When ESAP was
introduced in 1991, it was intended to alleviate the problems of the economy but the deficit faced by
Central Government has led to a rapidly increasing interest rate, from 40 percent in 1995, peaking at
60 percent in 1999 / 2000. As a result, companies have had to outlay increasing amounts for the
necessary inputs. The cost of foreign exchange has also increased sharply. Whereas the exchange rate
was Z$8 to US$1 in 1994, the rate in 2000 is Z$58 to US$1. This situation makes it hard for fertilizer to be
available readily as importers cannot obtain the foreign currency they need and this threatens their
operations viability. Customs tariffs are a further constraint. There is a 5 percent duty across the board
on all inputs as well as on the finished product.
Effective procurement of inputs depends on the capability and reliability of the supplier. Failure to
secure such a supplier has a number of interlinked implications, such as:
Stock shortages resulting in interruptions to production and sales;
Negative effect on return on investments due to high costs arising from unnecessarily high
prices; and,
�
�
�
�
�
�
�
�
�
�
Page 13
�
�
�
�
Declining market share as a result of inefficiency caused by procurement difficulties.
The major threats to input supply include that of possible sanctions, especially could affect imports
from the US and from Europe. However, some opportunities also exist. The first is in the area of
exports and could be exploited by local companies moving from only supplying the seasonal local
market, to exporting. The situation could also be alleviated through:
Direct purchase of goods from source i.e. cutting out the middle person;
Aggressive negotiation;
Conservative use of foreign exchange.
The fertiliser industry in Zimbabwe is controlled by four interdependent, local companies. The
Zimbabwe Fertiliser Company (ZFC) and Windmill are both reliant on forms of technology that
require inputs supplied by Zimphos and Sable Chemicals.
Sable Chemicals was formed in 1966, one year after Rhodesia's Unilateral Declaration of
Independence (UDI) in response to the threat of sanctions. Sable manufactures ammonia, from which
it then makes ammonium nitrate fertiliser. Sable Chemicals uses a high energy intensive process,
which makes the company the second largest user of electricity in the country after the City of Harare.
Eighty Seven percent of the energy required is used in the electrolysis process. This has proven to be a
leading cost driver as there has been a 226 percent increase in the cost of electricity between January
1999 and August 2000. There has, so far been no viable alternative to the production of ammonia
locally as imported ammonia is also very expensive. Natural gas was found in the Lupane area years
ago but the cost of getting it is too high for any one company to undertake alone. It was suggested that
Sable Chemicals could consider negotiating directly with other suppliers of electrical power in the
region.
Zimphos manufactures phosphatic fertilisers, the main inputs being sulphuric acid and phosphate
rock. Sulphuric acid is burnt to produce sulphur which then reacts with phosphate rock to make
super phosphate. The major cost involved is fuel, since it takes 25 000 litres of diesel to start the
sulphur burning plant. In addition, the plants use imported technologies that are now forty years out
of date. This means that spare parts have to be specially made at high costs and the company has to
face either long delivery times or the need to stockpile spares in case of breakdown. The major
opportunity for the company lies in the area of exports.
Page 14
Windmill and ZFC depend on Sable Chemicals and Zimphos but also have to import boron, potash
and other chemicals. The major constraints they face are:
Shortage of local raw materials arising from the production constraints of their local
suppliers, Zimphos and Sable; and,
The continual need to purchase inputs while sales only take place during two periods in the
year.
Mr Mawodza suggested that the way forward lies in addressing institutional constraints as follows:
Dialogue with the Zimbabwe Electricity Supply Authority towards more favourable
electrical rates;
Government creating a conducive atmosphere for investment by establishing a free floating
exchange rate, reducing its deficit and addressing the current tariff regime; and,
The industry itself addressing its in-house problems.
�
�
�
�
�
Page 15
Discussion on the Overview of Marketing and Trade…
Chairperson, Sam Moyo highlighted that there was a series of problems spanning the
agricultural, industrial and energy sectors.
FANRPAN needed to come up with solid policy guidelines in support of Government's
recognition of the need to review the current agrochemical production system. FANRPAN
could assist by carrying out research into the alternatives and developing guidelines for
implementation.
ZIMACE was seen to have been very proactive but it was noted that farmers were currently in
a state of limbo because of the situation with GMB, which has accepted maize from farmers
but had been unable to pay them. It was suggested that ZIMACE use its regional contacts to
find a way out of this situation. In particular, it was pointed out that Kenya had a huge deficit
of maize in the 1999/2000 season. Though a policy decision from the Government would be
required to overturn the current ban on the export of maize, this was seen to be necessary, at
least as a temporary measure.
The non-payment of farmers affected many industries. This had a bearing on their confidence
in the market, leading to shortages in the seed industry. Maize was viewed as a good
commodity for production and handling by rural communities but fear was that should
farmers lose confidence in producing maize, Zimbabwe risked becoming a net importer of
basic commodities. There was need for Government to come up with a clear way forward.
ZIMACE could assist but it was felt that it could not replace the role of the GMB.
�
�
�
�
Section Two
Page 16
STAKEHOLDERAND SECTORPRESENTATIONS
Page 17
Major Constraints, Threats And Opportunities Within The Indigenous Farming SectorBy Mr Nokwazi Moyo
The Indigenous Commercial Farmers' Union (ICFU) has a membership of 860 and a circulation of 1
500.The potential membership is around 15 000 and includes small scale and large scale commercial
farmers and those farming in peri-urban areas. Members generally range in age between 35 and 55
years and are drawn from males, females, youth and companies, usually representing a married
couple. Landholding types represented are mainly freehold or leases of various sorts. The
membership is widely scattered across the country but with clusters occurring in some areas. Major
areas of farming activity of members are maize, tobacco, cotton, horticulture, soya beans and beef.
Some members are also undertaking paprika, sugarcane, goats, pigs and dairy farming, mostly on a
small scale.
Mr Moyo identified lack of information as the major problem among indigenous farmers. The ICFU
had made the following attempts to correct this through:
Soliciting fortnightly returns from members although there had been a poor response to this;
Establishing consortiums for joint planning and implementation but this requires a high level
of trust between members and only a few such consortiums are functional;
Encouraging joint ventures between the financial sector and members, particularly those
growing paprika, to handle production, handling and marketing;
Provision of supply contracts to those members able to meet the high requirements;
Encouraging marketing cooperatives for services such as drop off and pick up points, and
collection from farms, to increase efficiency and reduce spoilage of fresh produce;
Providing market intelligence directly, through Zimtrade's 'tips' and the Internet;
Putting proposals to the United Nations Development Programme (UNDP) and the Food and
Agriculture Organisation of the United Nations (FAO) for them to provide regional and
national data respectively;
Convening several seminars in areas such as Business Success Competency and marketing;
Pushing for Export Processing Zones (EPZs), especially on the periphery of Harare where
beef and tobacco is being produced;
Encouraging addition of value on-farm among the EPZ businesses.
The general emphasis of the ICFU has been to convert non useable information into a format that is
useable by its members to enable them to begin to address constraints of technology, demand,
marketing and generally their poor standard of living.
�
�
�
�
�
�
�
�
�
�
Page 18
The constraints to the sector include:
Communications, information and knowledge and the inability, in financial and
infrastructural terms, to react to available information;
Investment capacity;
Production capacity with many members being too small to produce in the volumes required
by the market;
Quality management and control, because of lack of information, farmers sometimes devote
resources to producing to an unnecessarily high quality;
Human resources which need to be developed and retained over time;
Management skills which become more complex as the sector is further integrated;
Pricing policy and payment mechanisms which favour the buyer or contractor;
Specialized forms of transport needed for some products.
There are a number of threats to the indigenous commercial farming sector. The first relates to volatile
and dynamic planning data. Farmers need to be planners but in the current situation of currency
instability, hyperinflation and consequently unpredictable input costs, this is very difficult.
Shortages of foreign exchange has led to unreliable input supply. In addition, labour instability,
characterised by industrial actions and the 'wildfire effect', leads to escalating labour costs and
demands. Another threat is the unreliability of off shore and regional markets. The advantages to
African farmers under the Lomé agreement were diminishing and the direct agreement between the
European Union (EU) and South Africa will have repercussions for local farmers as it would
introduce cheaply priced imports while limiting exports. The removal of tariffs under SADC and
COMESA trade arrangements may be potentially damaging, particularly to the dairy industry. The
fall in Zimbabwe's credit rating will also negatively affect trade. The final threat is the current
economic crisis and level of political unrest which will slow demand for farm products. The
inadequate revenue base is likely to lead to the collapse of public infrastructure and this, combined
with social and political unrest produces an atmosphere that is not conducive to trade.
Opportunities that exist for farmers are:
Entry level investment choices for those new players who have not yet invested heavily in a
particular activity and now have access to an improved range of technology;
Education and training, including the Young Commercial Farmers Education (YCFE), the
National Farmers Training Programme (NFTP) and the Integrated Agricultural Education
Curriculum aimed at coordinating and linking education and training in the various
institutions;
The land reform and resettlement programme which would lead to a larger production base,
more efficient use of land, long term stability in the farming sector, more on farm and off farm
activities and more innovative enterprises which would increase product demand;
�
�
�
�
�
�
�
�
�
�
�
Page 19
�
�
�
�
�
�
�
�
�
�
Higher demand for Zimbabwean products as a result of the devalued currency making
export prices competitive, good quality produce with supplies becoming more reliable as
they are drawn from a broader production base, and the windows of opportunity created by
various upcoming protocols and agreements;
Better freight services provided by the new Harare International Airport and services.
A number of different advocacy strategies were suggested. Firstly, it was felt that the Ministry of
Industry and International Trade ought to negotiate for agreements relevant to the country's farmers
and to ensure that the process of indigenisation was integrated into the entire industrial sector. The
Ministry of Finance and Economic Development needed to seriously consider more innovative
economic development projects and facilitate the processing of offshore finance guarantees in the
context of understanding a greater range of projects. Both of the ministries mentioned above needed
to foster formal and informal linkages with the Ministry of Lands, Agriculture and Rural
Resettlement. Existing trade agreements and protocols had to be studied to unlock their potential
while new 'smart' partnerships should be formed with regional partners. A 'complete loop' approach
was recommended in which marketing was viewed as an integral part of the production process. The
following approach was suggested:
Local or offshore finance with a guarantee;
A local project manager who also assumed debtor status if there was borrowing involved;
A consortium of farmers and others involved in production;
Local and offshore marketing, possibly involving a consortium; and,
Local and foreign stop order facilities involving a bank offering international banking
services.
Further to advocacy strategies, it was suggested that there was a need for unity of purpose and the
adoption of an industry wide concept focusing on efficiency, productivity, value addition,
reinvestment and use of local resources. Commodity specific promotional activities were needed in
the short, medium and long term. Research and extension were necessary in the area of commodity
development and diversification. Finally, marketing systems needed to be liberalised on the basis of
diverse and reliable market information sources. However, there were some functions, including
research, that were inherently non commercial and these should remain centralised.
The following issues were suggested as part of the Zimbabwe Node the research agenda:
Futuristic products such as polyunsaturated edible oils and pharmaceuticals;
Quality trends and consumer tastes;
Supply and demand trends;
Page 20
�
�
Cost of production trends using reliable and independent data sources; and,
Traceability of origin and compliance with codes of conduct.
Mr Moyo concluded that a coordinated approach to marketing research was needed. Research by the
network should be demand driven. The conflicting needs for confidentiality and disclosure must to
be resolved at the regional level and strategic regional partnerships needed to be formed towards
improved procurement and marketing.
Page 21
An Overview Of Agricultural Commodities Traded By ZimbabweBy Mrs Barbara Mathemera, Ministry of Lands, Agriculture and Rural Resettlement.
Zimbabwe's agricultural import and export policy aims to improve the international, regional and
domestic markets for agricultural products and improve agriculture's contribution to food security
and economic growth. Foreign trade in agriculture is constantly affected by the rules of the World
Trade Organisation (WTO) and the demands of the developed countries. The focus of crop
production is to meet national food consumption requirements but excess production in maize,
wheat and soya beans allows for food exports which are a valuable source of foreign currency. The
Ministry of Lands, Agriculture and Rural Resettlement uses a permit system to monitor the import
and export of agricultural commodities.
The agricultural sector accounts for about 41 percent of Zimbabwe's export earnings with the major
market being the European Union (EU) where Zimbabwe's products currently enjoy preferential
access under the Lomé IV arrangement. The major agricultural commodity exports in 1999 were:
Tobacco at 65 percent of the total, valued at US$ 564 million;
Cotton lint at 12 percent, valued at US$ 110 million;
Horticultural products at 8 percent of the total, with a value of US$ 60 million;
Beef, being another 4 percent of the total, valued at US$ 38 million;
Sugar at 4 percent of the total, valued at US$ 36 million; and,
Coffee at 3 percent of the total, valued at US$ 28 million.
Tobacco remains Zimbabwe's major foreign currency earner with the EU, where Zimbabwe's
products have duty free entry under the EU-ACP Protocol. Zimbabwe currently has a tariff rate quota
of 12 000 tonnes to the United States but this has not been fully utilised. The viability of the industry is
threatened at the moment by low prices, the proposed World Health Organisation, Framework
Convention on Tobacco Control and the anti smoking lobby.
Most of Zimbabwe's cotton lint is exported to the EU where it enjoys duty free access. Other markets
are in Australia, the Far East, Switzerland, Portugal, some Asian countries, South Africa and
Botswana. Production costs are high and the international prices are depressed. About 80 percent of
cotton production takes place in the small scale farming sector.
Zimbabwe's horticultural exports to the EU, where 65 percent of the products have duty free access,
have grown at about five times the rate of global exports since 1990. Over the last ten years, the annual
�
�
�
�
�
�
Page 22
growth rate in agricultural exports has averaged 20 percent. As only a small portion of Zimbabwe's
farming land is devoted to horticultural export crops and there is still considerable room for
expansion.
Beef production operates in a five year cycle, is highly capital intensive and characterised by low
margins. The Cold Storage Company is the only player in beef exports to the EU under the Lomé IV
Protocol. Over the years there has been an increase in the EU market and a lot of resources have been
put in by the EU and the Government of Zimbabwe to ensure that the area meeting EU veterinary
requirements is extended. In addition, there is a high regional demand for Zimbabwean beef which
traders are exploring.
Markets for sugar are the EU, the USA and a number of countries in the SADC region. Negotiations on
the SADC Trade Protocol centre on securing a share of any expansion in regional sugar markets in
addition to the bilateral arrangements already in place.
Increases in Zimbabwe's coffee production are projected in 2001/2 as plants currently at non-bearing
stage reach maturity. Most exports are to the EU with other markets being the USA, Japan and South
Africa. Sanitary and Phytosanitary conditions are increasingly being used in international trade as
non tariff barriers to this commodity.
Zimbabwe is a net exporter of maize, to regional markets, in most years but has to import in years of
drought or excessive rain. Major constraints are the volatility of prices, production instability, low
productivity in the smallholder sector, high input costs and, in the current season, the Grain
Marketing Board's (GMB) inability to buy maize.
Although wheat is grown in Zimbabwe, the country is still a net importer of this commodity.
Production constraints include the need for irrigation facilities, and the quela bird. Anyone may
participate in trading wheat but the market is constrained by price controls on flour and bread.
In conclusion, Mrs Mathemera reiterated that most of Zimbabwe's agricultural exports were to the
EU, due to the preferential access in that market. Less than 10 percent of the exports were to the region
although Zimbabwe was a member of both SADC and COMESA. The aim of the SADC Protocol was
to promote free trade within the SADC region in a period of eight years. The Protocol was in line with
trade laws and standards stipulated under the WTO and Zimbabwe was well ahead of most SADC
and COMESA countries in terms of application of these regulations. Benefits from trade in COMESA
were currently skewed in Zimbabwe's favour. Zimbabwe had duty free trade arrangements with
Botswana, Malawi and Namibia while selected agricultural commodities also had duty free access to
South Africa.
Page 23
Agricultural Input Policy AnalysisBy Dr. Vincent Gwarazimba, Zimbabwe Seed Trade Association
Dr Gwarazimba examined the supply systems for inputs. He explained that agricultural inputs took
the form of; agrochemicals for use with crops and livestock, seeds and fertilizer seeds. There was no
local manufacture of agrochemicals in Zimbabwe and thus, all products were imported. Ten to fifteen
players were involved in the importation and were able to sustain the market. The major constraints
to the importation of such inputs related to the foreign exchange situation and fluctuations in price
caused by the instability of the local currency. Of note was the fact that when a new chemical was
introduced into Zimbabwe, it had to undergo a three year testing programme by the Plant Protection
Research Institute. Release programmes, which require extensive testing of inputs have tended to
delay the transfer of technology to farmers.
The fertiliser industry combines local production and imports. Four companies were involved in the
manufacture of fertilisers. The government was aware that the current situation contained several
constraints. The equipment being used was obsolete, production was inconsistent and the end
product very bulky. The net result was the inability of the local production system to adequately meet
local requirements.
Zimbabwe is a seed producing country and was self sufficient in seeds for local production of cereals
and oilseed crops. However, the country has always had to import vegetable seeds. About half a
dozen companies were involved in the importation and distribution of vegetable seeds. In order to
meet sanitary and phytosanitary requirements, these institutions were forced to import seed six
months ahead of the planting season. This was a problem as the local climate is not ideal for seed
storage and some loss of seed quality always results. It is therefore the farmer who eventually loses
out in this regard. There are four local, one regional and two international companies involved in the
production and distribution of seeds for cereal and oilseed crops. These are competent companies
and are able to supply sufficient seed of the correct varieties. In the past, only one company was
involved in the supply of wheat and soya bean seed but, with the involvement of Government, this
industry is gradually opening up.
Zimbabwe is a regional hub, particularly for the production and export of maize but this is tightly
controlled. The existing agricultural input policy is designed to assure farmers access to good
technology and, thereby, stimulate production. It seeks to create a sustainable supply of inputs
through research and development in both the public and the private sector although it is not clearly
what is expected of each sector and the anticipated level of collaboration. The policy currently does
Page 24
not facilitate access by smallholder farmers to the necessary technology and inputs. This is a potential
research area. Given that many of the inputs are imported, it is important to consider lowering the
current 60 percent duty on these to 5 percent.
Although the agricultural policy framework provides for a sound base for increased productivity and
food security, a number of new developments should be considered. Most critical are:
The WTO/TRIPS agreements on trade, agriculture and biodiversity;
The SADC and COMESA trade protocols which require members to gradually eliminate tariff
and non tariff barriers to trade in the region; and,
The Zimbabwe Land Policy which is expected to increase demand for agricultural inputs.
�
�
�
Page 25
Institutional and Administrative Issues on Zimbabwe's
Agricultural Imports and ExportsBy Mr. David Mfote, Ministry of Lands, Agriculture and Rural resettlement.
The presenter noted that, prior to the introduction of the Economic Structural Adjustment
Programme (ESAP), there were thirteen agricultural commodities controlled by Government. Ten of
these were controlled by the GMB while the others were controlled by the Cotton Marketing Board,
the Dairy Marketing Board and the Cold Storage Commission. Government has tried to decentralise
the system through the dismantling or privatisation of all of these boards although the Ministry of
Lands, Agriculture and Rural Resettlement still issues import and export permits.
There were a number of government ministries and other bodies that played an active role in the
institutional arrangements concerning agriculture. These are:
� The Ministry of Foreign Affairs, through its trade missions;
� The Ministry of Environment and Tourism;
� The Ministry of Industry and International Trade, which deals with promotion;
� The Ministry of Finance and Economic Development, setting up the macroeconomic basis for
production and trade, and also housing the Department of Customs and Excise;
� The Ministry of Lands, Agriculture and Rural Resettlement, which sets the agricultural policy
through its Policy Planning Division, and is also responsible for issuing import and export
certificates and phytosanitary certificates;
� Zimtrade, by promoting trade in the region;
� The Tariff Commission, under the auspices of the Ministry of Industry and International
Trade, which makes recommendations towards the reduction of Tariffs;
� The Export Processing Zones Authority which promotes the production of value-added
agricultural commodities; and the various commodity associations and advisory councils for
horticulture, coffee, meat and livestock, grains, cotton, oilseeds and dairy products;
� ZIMACE.
In terms of the legal framework, marketing is controlled by the Control of Goods Act, Ch 14.05; the
Control of Goods (Import and Export) (Agricultural) Order, 1993; Statutory Instrument 350 of 1993,
listing agricultural commodities for which an import or export permit is required; and the Animal
Health and Plant Pest and Diseases Acts. Trade is controlled under the Customs and Excise Act.
Some of the constraints to agricultural trade were :
The semi-liberalisation under the Control of Goods Act which had enabled Government to
continue to control maize and wheat prices;
The restrictions represented by the need for import and export permits and since the process
was centralised, it was inconvenient for those living outside Harare;
The monopoly of the GMB in the import and export of maize;
Inadequate sanitary and phytosanitary testing facilities, particularly at border posts.
The following areas were suggested for further research:
An agricultural and trade policy paper in preparation for the SADC Trade Protocol
negotiations;
Ways of encouraging smallholder farmers and small enterprises in regional trade;
Harmonisation of agricultural regulations and legislation in Zimbabwe.
�
�
�
�
�
�
�
Page 26
Section Three
REPORT BACK FROMTHEMATIC GROUPDISCUSSIONS
Page 27
Introduction
As an introduction to the group discussions, it was noted that agriculture was central to Zimbabwe's
economy as the majority of the people derive their livelihood from this sector. For development of the
sector to occur, it must be market driven and private sector led. This, in turn, requires a healthy
market but there are, currently, many constraints and distortions. A healthy market would require:
A healthy policy and legislative environment;
Appropriate infrastructure; and,
Functional institutions.
The three themes for discussion were:
Commodities;
Input supply;
Institutional and administrative issues.
The groups were tasked to include the following in their deliberations:
Identification of the types or categories of products and the major players involved in each;
The barriers to a healthy trading and marketing environment;
An analysis of the constraints and problems;
Recommendations for solving the problems identified;
An analysis of the cross cutting issues in agriculture;
Identification of areas for further research and dialogue.
�
�
�
�
�
�
�
�
�
�
�
�
Page 28
Commodities (Group 1)
The group listed a number of agricultural commodities then identified the major players concerned
with each, the key issues and the possible solutions as shown below.
Maize
SmallGrains
Oil-seeds
Small and large scale producers
ZIMACE
GMB
Smallholder farmers as producers
Private buyers
Private exporters
Small scale and large scale producers
Domestic traders
GMB monopoly as a barrier to tapping regional markets for maize
Lack of funds in GMB for purchase of maize in the current season
Partial liberalisation only
Poor market information
Transport and storage
General underdevelopment of the market
Poverty of producers
Poor service delivery
Legislative and policy issues such as the Control of Goods Act, ZIMPREST and ESAP
Production of usable market information
Reliability of supply
Conflict between protecting local industry and expanding export trade
Producers versus industry in influencing policy
Appropriate means of engaging farmers in policy formulation
Declining production
Resistance to producer prices by domestic big business
Erratic issuance of export permits
New players in the market leading to increased returns to farmers
Export of the 1999 maize crop
Complete liberalisation but with consideration given to food security
A market friendly food security strategy rationalising the role of the state and the GMB
Marketing information and intelligence needed
Finance for export marketing
Finance for export marketing
Stakeholder participation in policy formulation needed
MAJOR PLAYERSCOMMODITY KEY ISSUES SOLUTIONS
Horti-culture
Meat and live-stock
Importers and exporters
Large scale commercial farmers
Smallholder farmers (mainly in paprika)
Large scale farmers
CSC
Surrey Abattoirs
Private sector
Free trade versus import substitution
Appropriateness of Commodity Control Act
Impact of regional competition on local industry
Indigenisation
Domestic marketing
Permits a constraint to local exporters
Lack of access to transport for smallholder farmers' perishable crops
Erratic local and export production
CSC export monopoly
Restrictive sanitary legislation restricting the number of export abattoirs
Regional disparities in standards and health regulations
Examine ways of liberalising and privatising the market to maximise benefits to producers without jeopardising import substitution
Dialogue and research to inform MLARR policies
Strengthen policy
Transfer of appropriate technology to smallholder farmers
Research prospects for indigenisation of trade
Establish market intelligence systems
Legislation to force companies to disclose strategic information to local players
Enquiry into other options
Research required on EU standards to SADC markets
Page 29
Finance- short term- medium term- long term
Seed- field crops- horticultural and plant propagules- hybrids- trees and pasture- livestock
Agrochemicalsand fertiliser- organic- non organic
Private banks
Government
Donors
Private seed companies
Government research departments
Internationalagricultural research centres
Private companies
Government
Lack of collateral security
Cost of finance
Lack of focused and deliberate policy to channel money to smallholder farmers
Lack of financial knowledge and information
Slow disbursement of donor money
Export ant import control including lengthy documentation process, centralised import/export permit issuance, unscientific quarantine requirements and import duty
Imminent decline in hybrid seed production
Lengthy variety release process
High seed prices
Insufficient production capacity
Limited product range
Inadequate or wrong application of fertiliser due to limited or inaccessible soil testing facilities
High prices
Insufficient distribution points leading to congestion and delays at critical times
Title deeds for smallholder farmers
Change in financial policy to support communal farmers
Solar systems, electricity, biogas and tree planting as means to arrest environmental degradation
Decongesting the rural areas
Cost and time lost using the current documentation process
Means of decentralising import/export permits issuance
Establishment of a new list of quarantine diseases
Reduce testing period to not more than one year and consider data submitted by manufacturers or independent research centres
Increase extension awareness and usage and provide more literature
Use of small, cost effective packaging for smallholder farmers
Increasing production capacity by pooling regional markets and introducing new technology
Page 30
Input Supply (Group 2)
The overall objective is to make inputs available to farmers at affordable prices, for increased and
sustainable agricultural production. Recommendations for further research are shown below.
INPUT SUPPLIERS TRADE CONSTRAINTS AREAS FOR RESEARCH
Land- freehold- leasehold- communal
Government
Privatecompanies
Lack of title deeds in the communal areas
Congestion due to the limited area available
Land degradation caused by not observing prescribed conservation methods
Agricultural production in unsuitable agroecological regions
Exploration of different and cost effective alternative sources of ammonia and power
Setting up of depots in communal areas to decentralise distribution
Page 31
Ministry of Foreign Affairs
Ministry of Industry and InternationalTrade
Main diplomatic channel for foreign trade
Promotes linkages trough trade negotiating forums and signing trade protocols
In charge of domesticand foreign trade policy
Coordination of trade policy functions across ministries
Administration of Control of Goods Act
Administration of the Tariff Commission
Administration of the EPZ programme
Work with Zimtrade on research, informationdissemination, trade fairs, business liaison and export finance
Lack of financial resources leading to a reduction in the number of missions
Political instability
Lack of coordination with sister ministries
Bureaucracy leading to a delay in the trickle down effect
The Control of Goods Act was not repealed as part of liberalisation and is still widely used
The Tariff Commission reports to the Ministry of Industry and International Trade but the Ministry of Finance and Economic Development has the final say
Split responsibilities with the Ministry of Lands Agriculture and Rural Resettlement having the final say on agricultural products such as maize
Regional rather than country level representation to cut costs
Strategic placement of embassies
Trade Attachés within embassies to particularly target agricultural trade
Use of Zimtrade's services
Policies towards a stable macroeconomy
Reduce bureaucracy and increase information with ministries, informing stakeholders of agreements entered into
Bring Control of Goods Act into line with liberalisation policies
Allow the Ministry of Industry and International Trade the final say in the Tariff Commission
Balance and harmonise portfolios
Allocate a trade department within the Ministry of Lands, Agriculture and Rural Resettlement
Page 32
Institutional And Administrative Issues (Group 3)
The group addressed ways at which institutions were involved in agriculture at various levels, role(s)
each of them played, constraints faced and possible solutions. The findings are shown below:
ROLESINSTITUTION CONSTRAINTS SOLUTIONS
Ministry of Finance and EconomicDevelopment
Ministry of Lands,Agricultureand Rural Resettlement
Management of fiscal and monetary policy and the tarification process
Control of movement of goods in and out of the country through the Department of Customs and Excise
Responsible for agricultural policy
Representsstakeholders in the negotiation of trade protocols
Issues import/export permits for most agricultural products
Research
Extension
Animal health
Land redistribution and resettlement
Lack of discipline in the management of fiscal and monetary policy
Lack of commitment to the objectives of the economic reform programme
Loopholes and corruption in the control of goods
Inefficiency and delays in border clearance
Lack of finance for agricultural extension services
Centralised issuance of permits
Inflexible and cumbersome permit application processes
Informal operators avoiding permit procedures thus not captured in trade data
Lack of proper guidelines in imports and exports
Inadequate phytosanitary testing facilities at border posts which can lead to dumping e.g. of South African cheese
Poor system for monitoring permits
Maize exports monopolised by GMB
Testing time for new chemical products on the market
Full liberalisation in the long term
Clear cut exchange rate policy in the short term, either floating, managed or fixed
Simplify procedures
Improve skills of personnel
Publicise regulations
Decentralise issuance of import and export permits
Identify commodities which do not require permits
Research, negotiation and dialogue at the regional level
Improve facilities and personnel
Either deregulate or allow GMB to identify a third party to carry out import and export on a tender basis
Maintain control of grain reserves through export permit allocation
Streamline procedures for variety release and registration of new products
Page 33
Page 34
The following cross cutting issues were identified:
Policy making carried out without reference to stakeholders had resulted in lack of
ownership of policies and difficulties in implementation;
Poor linkages and coordination between ministries; and,
Lack of financial resources.
The group identified a number of issues for further research and dialogue as follows:
A policy paper on developing agricultural marketing and trade was needed;
Re-examination of crops needing to be regulated by permits, addressing the types of
commodities actually exported and imported;
Development of regulations governing export and import of agricultural commodities in the
SADC region;
Identification and definition of specific problems and constraints facing small scale and
informal traders through information dissemination, dialogue and stakeholder consultation;
Development of strategies to encourage and finance small players and help them to grow;
Cost/benefit analysis of regional trading arrangement and their likely impacts; and,
Potential for harmonisation of sanitary and phytosanitary regulations within SADC.
�
�
�
�
�
�
�
�
�
�
Section Four
Page 35
SYNTHESIS OF THEISSUES ANDCLOSING SESSION
Page 36
Workshop SynthesisBy Dr Reneth Mano, University of Zimbabwe
The participants identified the following highlights of the consultation forum:
Constraints needed to be identified as Government regulates and restricts trade;
The need for Government to provide an enabling environment and not to control everything;
The need for decentralisation of permit procedures;
Inputs should be made available at the right price and time and of the right quality to ensure
sustainable production.
Summary Of Recommendations
The following were policy recommendations raised during the Zimbabwe Stakeholder workshop:
Increase of stakeholder participation in policy formulation was needed.
Liberalise but with consideration given to food security, including rationalisation of the roles
of state and the GMB.
Greater financial commitment to export marketing was required.
Provision of marketing information and intelligence to all involved in the agricultural sector
was vital.
Strengthening of indigenous players through policy, extension and technology transfer was
necessary.
Streamlining and rationalization of procedures including issuance of permits, import
clearance and variety release were essential.
There was need to institute new or alternative technologies, particularly for energy provision
and fertiliser production.
Land reform and investigation of land tenure arrangements were vital to sustainability.
Negotiations on regional and international trade protocols must bear in mind local and
stakeholder needs and interests.
�
�
�
�
�
�
�
�
�
�
�
�
�
Page 37
Areas For Further Research By The FANRPAN Zimbabwe node:-
The workshop identified the following areas for further research:
Ways of liberalising and privatising the market to maximise benefits to producers without
jeopardising import substitution.
Appropriate technology for smallholder farmers.
Prospects for indigenisation of trade.
Market intelligence and its dissemination.
Relevance of international standards to regional markets.
Scientific establishment of a new list of quarantine diseases.
Alternative and cost effective sources of power.
Alternative and cost effective sources of fertiliser and its inputs.
Financial and exchange rate policy options in support of the agricultural sector, including
smallholder farmers.
Improve land tenure systems.
Investigation of the regulations and legislation controlling trade in agricultural commodities
and inputs.
�
�
�
�
�
�
�
�
�
�
�
Page 38
Closing Remarks - Professor Sam Moyo
Professor Moyo expressed appreciation to the FANRPAN secretariat and other stakeholders, who
had attended the workshop. It was hoped that they would continue being committed to this policy
network. There were other initiatives taking place as part of the agricultural sector and as
development initiatives but these tended to have heavy donor influence. For the FANRPAN network
to succeed, there was need for stakeholders to be committed and to maintain the momentum from this
consultation.
Finally, Professor Moyo thanked the following institutions:
The organisers from the SARIPS Policy Dialogue Programme;
The Ministry of Lands, Agriculture and Rural Resettlement;
The SADC Food Security Sector;
University of Zimbabwe for funding the workshop.
�
�
�
�
Section Five
Page 39
APPENDICES
Page 40
FANRPAN Stakeholder Workshop: 19 September 2000
THEME : AGRICULTURE TRADE WITH SPECIFIC FOCUS ON ZIMBABWE AND
THE REGION.
VENUE: HARARE INTERNATIONAL CONFERENCE CENTRE
-----------------------------------------------------------------------------------------------------------------------------------
8:00-9:00 Tea & Registration
9.00-9:10 Introduction: Chairperson - Prof S. Moyo.
9:10-9.30 Opening Address: Minister of Lands and Agriculture- Hon. Dr Joseph Made
9:30-10:00 Overview of Agricultural Marketing and Trade: Problems and Prospects
� Trade in Commodities- I.goggin
� Input Supply B.mawoza
10:00 10:15 Discussion
10:15-10:30 Tea Break
10:30-11:00 Presentations By Farming Organisations
� C.F.U - Ndoro
� Z.F.U - Tsikisayi
� I.C.F.U - N. Moyo
11:00-11:15 Discussion
11:15-13:00 Break Into Thematic Groups K. Matlosa/ A Mwanza
� Commodities B. Matemera/ R. Mano
� Input Supply- V. Gwaradzimba/ F. Simbi
� Institutional and Administrative Issues- D. Mfote/ Mudimu
13:00-14:00 Lunch
14:00-15:00 Thematic Group Discussions Continue
15:30-15:50 Tea Break
15:00-15:15 Thematic Group Report Back
15:50-16:30 Discussion
16:30-17:00 Synthesis and Way Forward- R. Mano
17:00-17:05 Vote of Thanks- Sam Moyo
RAPPORTUERS Chiriga, Allardice, Simango
ANNEX 1
Page 41
ANNEX 2
Abigal
Allan
Barbara
Baxter R.
Chipo
Chrispen
Clemence
Colin B
Collin
Danisa
David
Devious
Edington
Francisca
Freddy
Friday
Fungayi
Gerald
Ian
Ishmael
Isiah
Jennifer
Luckmore
MacDonald
Manfred
Tichareva
Mushonga
Mathemera
Mawoza
Zishiri
Sukume
Sakala
Cloete
Phiri
Matebes
Mfote
Marongwe
Muzengezah
Mutekwa
Chawasarira
Simango
Simbi
Kaombe
Goggin
Chikwenhere
Marinda
Chiriga
Chitenhe
Dzirutwe
Majoni
SAPES Trust
Gwebi College
UZ
Gwebi College
CFU
MLARR
Min. of Env & Tourism
SAPES Trust
Gwebi College
Zimtrade
SAPES Trust
Gwebi College
SAPES Trust
Gwebi College
197 Harare DriveBorrowdale
P.O Box MP 111Mt Pleasant
P.Bag 7701Causeway
57 Cecil Rd AmbyMsasa, Harare
P Bag 376B Harare
P.O Box MP 167, Mt Pleasant
P.Bag 376B Harare
Box WGT390 Westgate Harare
P.O Box HG139 Harare
719 Glen Norah AHarare
1 Borrowdale Road Harare
P. Bag 7759Causeway
4 Deary Avenue,Belgravia
P.Bag 376B Harare
7th Floor Livingstone Building
4 Deary Avenue,Belgravia
Box EH 47, Emerald Hill
P.Bag 376B Harare
P.O Box CY 2277 Causeway
Box CY610 Causeway
Box CY 859 Causeway
4 Deary Avenue,Belgravia
Box 806 Marondera
43 3rd AveWarren Park
P.Bag 376B Harare
884819
252962
706081/9
487803
304515/6
011 210129
304515/6
309800
498436-9
304515/6
706081
757851/5
252962
304670
772731
252962
011 607920
304670
734649
011 800610
091 327958
252962
079-232447
781571/9
B304515/6
252964
734646
487934
303544
309873
497066
333850
734646
748541
252964
252964
336636
792420
614012
252964
752831
333850
allan@sarips.co.zw
mathemera@agriculture.gov.zw
csukume@africaonline.co.zw
ramyot@cfu.co.zw
mfote@agriculture.gov.zw
ozone@gta.gov.zw
valeria@sarips.co.zw
Friday@sarips.co.zw
fungayis@africaonline.co.zw
zimaw@samara.co.zw
jennifer@sarips.co.zw
dzirimac@yahoo.com
gwebiagric@gta.gov.zw
FIRST NAME LAST NAME COMPANY POSTAL ADDRESS PHONE FAX E-MAIL
FANRPAN Participants List: 19 September 2000
Page 42
Martha
Megan
Mike
Mutsa
Natasha
Nokwazi
Patridge T
Reneth
Richard
Roy
Sam
Samuel
Sylvester
Taka
Tarisayi
Tawanda
Tawanda
Thompson
Tichaona
Tungamirai
Vincent
Vonesai
William
William K.
Nyika
Rumbidzayi
Chinyerere
Allardice
Mispelaar
Chasi
Mukherjee
Moyo
Sibanda
Mano
Amyot
Rukambe
Moyo
Muchena
Katema
Mutunhu
Pedzisa
Ganda
Nherera
Chemhere
Dhliwayo
Mukarati
Gwarazimba
Hove
Matizha
Maeka
Mashava
Sibanda
Gwebi College
CREATE
Agritex
C/O SADC Regional Hub
ICFU
EPZ Authority
UZ
CFU
Natural Resources
SAPES Trust
African Centre for Fertilizer Dev.
Indigenous Seeds Marketing Co.
Agribank
Gwebi College
Gwebi College
Agribank
Zimtrade
Gwebi College
Gwebi College
Gwebi College
Gwebi College
P.Bag 376B Harare
4 Devon Rd, AvondaleWest
10 Lawson Ave,Milton Park
Box Cy 639 Causeway
Social Security Centre Harare
P.O Box CY 610 Causeway
Box 661484 Kopje Harare
Agric. Economics Dept
Box WGT390 Westgate Harare
P.O Box CY 385 Causeway
4 Deary Avenue,Belgravia
P.O Box A469Avondale
Box W323 Waterfalls
Box 6600 Harare
P.Bag 376B Harare
Box 376B Harare
P.O Box 33 Shamva
Box 92 Concession
Box CY 859 Causeway
P.O Box 369 Harare
P.O Box A1906Avondale
Box 2738 Harare
P. Bag 376B, Harare
P.Bag 376B Harare
P.Bag 376B Harare
P.Bag 376B Harare
304515/6
302809
091 234300
707311
308028
614012/4
736565-9
301612
309831
705671/4
252962
860421/2
722972
304670
334515/6
2452/3
707317/9
774429/31
332017
748641-44
304522
304670
304515/6
304515/6
614012
736484
309873
252964
860423
774556
332017
771730
333850
333850
333850
333850
moonlight@africaall.net
create@internet.co.zw
rogier@africaonline.co.zw
noxmo@harare.iafrica.com
patridge@epz.co.zw
zeigmano@pci.co
ramyot@cfu.co.zw
sam@sarips.co.zw
actd@africaonline.co.zw
zsta@internet.co.zw
vhove@zimtrade.co.zw
gwebiagric@gta.gov.zw
FIRST NAME LAST NAME COMPANY POSTAL ADDRESS PHONE FAX E-MAIL
Recommended