eBusiness Weekly
Kudzanai Sharara
Zimbabwe first needs to rebuild its agriculture infrastructure and increase farm productivity if it is to achieve agro-based industrialisation as enunciated in the Zimbabwe National Industrial Development Policy.
The policy, which was approved together with the Local Content Strategy (LCP), has among its focus areas the promotion of industrialisation leveraging on the country’s “fertile agricultural land.”
“Zimbabwe is richly endowed with fertile agricultural land and a climate that is conducive for the production of many crops such as maize, cotton, tobacco, oil seeds and dairy, beef and leather products from livestock. The Zimbabwe National Industrial Development Policy (ZNIDP) will promote industrialisation that leverages on these endowments,” reads the ZNIDP.
To achieve its objective of attaining agro-based industrialisation, major activities are expected to include co-ordinating to strengthen linkages between agricultural producers and the agro-processing industry; using the Local Content Strategy to increase value addition of agricultural produce; promoting the utilisation of locally produced inputs such seed, fertiliser and agro-chemicals in agriculture; encouraging research and development targeted at the agro-processing industry; and adopting and using best agricultural practices.
Analysts, however, say all the above activities would be of no use if the farms are not put to optimal use as is the case now. The country is currently burdened with a huge food import bill, despite being endowed with fertile agricultural land and a climate that is conducive for the production of various crops.
The country spent US$724 million on agricultural and food imports in 2018 most of which are imported by agro-processors. Top imported products by value were: soya bean oil, wheat rice, maize oilcake (for animal feed), soya bean flour and peanuts (groundnuts), according to the International Trade Centre.
Key country suppliers by share were South Africa (41 percent), Zambia (11 percent), Thailand (8 percent) and Mauritius (6 percent).
This for a country that holds approximately 60 percent of water bodies (dams) in the SADC region is a reflection of underutilisation of the national resource that is land, analysts say.
Economist John Robertson hinges success of reviving agriculture on restoring property rights on the farms and unlocking funding.
The collapse of agriculture, analysts believe, led to the sharp decline in manufacturing, the fall in export revenues, and the growing dependence on imports.
“It (agro-based industrialisation) will become feasible as soon as they make it easy for banks to lend money to farmers,” says Robertson.
“All the farmers need is collateral. Nothing beats title deeds. The 99-year lease offers very little security because recoveries of loans from defaulting farmers has to be done through government. To be good collateral, land has to be marketable at market prices set by market forces without interference from anyone,” he said.
Agriculture production economist Mike Kok, puts the limited agriculture produce to “lack of knowledge” something, which was also identified by Finance and Economic Development Minister Mthuli Ncube, saying in his Transitional Stabilisation Programme:
“The attainment of food security and nutrition will be premised on strong research and development undertakings, coupled with the use of advanced technologies, including at the village level.
Kok says any competent farmer would not even blame poor crop out turn on weather.
“Any competent farmer will know how to accommodate the changes of the effects of weather,” said Kok.
He said the resources of the country’s land are mutilated and not used properly.
The land redistribution programme had gone from economically viable and sustainable units to small little units were theories of land rotation cannot be practised.
Kok said most farmers are not practising research based farming.
“Information that is available is not being sufficiently out there for farmers to learn.”
Industrialist Davison Norupiri, added saying contractors were losing out as farmers are failing to honour their contracts as a result of lack of knowledge or poor weather patterns such as drought.
This has resulted in industries slowing down or become reluctant to fund farmers.
“Some of the industries, they are actually slowing down because they are losing a lot out of the out-grower schemes with farmers producing less than they would be contracted for,” said Norupiri.
Agro focused firm, Cargill closed its local cotton business in 2014 citing depressed margins as well as high levels of breach of contractual obligations by cotton growers.
This, analysts say, has a knock down effect on the country’s quest to achieve agro-based industrialisation as throughput from the farms would be limited.
