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

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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.

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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

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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;

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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.

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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.

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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.

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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.

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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

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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.

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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.

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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,

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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.

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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.

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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.

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Section Two

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STAKEHOLDERAND SECTORPRESENTATIONS

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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.

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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;

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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;

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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.

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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

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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.

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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

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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.

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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.

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Section Three

REPORT BACK FROMTHEMATIC GROUPDISCUSSIONS

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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.

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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

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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

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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

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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

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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

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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.

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Section Four

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SYNTHESIS OF THEISSUES ANDCLOSING SESSION

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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.

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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.

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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.

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Section Five

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APPENDICES

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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

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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

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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

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