World Grain - August 2016 - 20

COUNTRY FOCUS

Focus on
Zimbabwe
African country more dependent on
grain imports than ever
by Chris Lyddon

ANGOLA

NAMIBIA

Agriculture is vitally important to Zimbabwe's economy,
but it struggles with challenges created by the country's wider
economic problems and has been hit hard by southern Africa's
drought. It means a traditional grain importer is an even bigger
importer now.
The International Grains Council (IGC) projects Zimbabwe's
2016-17 maize (corn) production at 400,000 tonnes, down from
700,000 the year before. It forecasts the country's total grains
imports at 1.1 million tonnes in 2016-17
The USDA attaché in Pretoria explained the drop. "Zimbabwe
experienced one of its driest seasons since the 1992-93 season,
due to a strong El-Niño-induced drought," an annual report on
the grains sector in Zimbabwe said. "As a result, corn production
in the 2016-17 market year (MY) declined by an estimated 43%."
The report sees imports higher than the IGC's forecast.
"Zimbabwe will have to import an estimated 1.4 million tonnes
of corn in the 2016-17 MY to meet the
TANZANIA
production shortfall," it said.
The attaché explained that wheat
production is on a declining trend.
MALAWI
ZAMBIA
"Prospects for wheat production in
Zimbabwe are also gloomy and production
ZIMBABWE
in the 2016-17 MY is estimated to reach only
about 16,000 tonnes. Hence, Zimbabwe's
BOTSWANA
wheat imports are forecast to reach about
280,000 tonnes in 2016-17 MY."
SWAZILAND
LESOTHO
Explaining why the maize crop is
down so sharply, the attaché said, "The
most affected areas by the drought were
parts of the Midlands, Masvingo, the southern parts
of Manicaland provinces, as well as the provinces of
Matabeleland North and South. These areas had high
rates of corn crop failure of more than 65%.
"Consequently, effective from Feb. 3, 2016, the
Zimbabwe government declared the 2015-16 farming season
a 'state of disaster,'" the report said. "The 2016-17 MY ElNiño-induced drought is the second consecutive dry season in

Key Facts
Capital: Harare
Population: 14,229,541
Religions: Protestant 75.9% (includes Apostolic 38%,
Pentecostal 21.1%, other 16.8%), Roman Catholic 8.4%,
other Christian 8.4%, other 1.2% (includes traditional,
Muslim), none 6.1% (2011 est.).
Location: Southern Africa, between South Africa and
Zambia.
Government: Semi-presidential republic. Chief of state
and head of government: Executive President Robert Gabriel
Mugabe (since Dec. 31, 1987).
Economy: Zimbabwe's economy depends heavily on its
mining and agriculture sectors. Following a decade of
contraction from 1998 to 2008, the economy recorded real
growth of more than 10% per year in the period 2010-13,
before slowing to roughly 3% in 2014. Until early 2009,
the Reserve Bank of Zimbabwe (RBZ) routinely printed
money to fund the budget deficit, causing hyperinflation.
Dollarization in early 2009, which allowed currencies such
as the Botswana pula, the South Africa rand, and the U.S.
dollar to be used locally, ended hyperinflation and reduced
inflation below 10% per year. The RBZ introduced bond
coins denominated in 1-, 5-, 10-, and 25-cent increments
on a par with the U.S. dollar in December 2014, more
than five years after the Zimbabwe dollar was taken out of
circulation. In January 2015, as part of the government's
effort to boost trade and attract foreign investment, the
RBZ announced that the Chinese renmimbi, Indian rupee,
Australian dollar, and Japanese yen would be accepted as
legal tender in Zimbabwe. Zimbabwe's government entered
a second Staff Monitored Program with the IMF in 2014 and
undertook other measures to reengage with international
financial institutions. Foreign and domestic investment
continues to be hindered by the lack of clarity regarding the
government's Indigenization and Economic Empowerment
Act. In 2015, the depreciation of the South African rand
against the U.S. dollar has led to deflation in Zimbabwe as
prices for South African imports decline while the costs of
domestic production in U.S. dollars remains stable.
GDP per capita: $2,100 (2015 est.); inflation: 0.1%
(2015 est.); unemployment: 95% (2009 est.) figures include
unemployment and underemployment; true unemployment
is unknown and, under current economic conditions,
unknowable.
Currency: Zimbabwean dollars (ZWD): the dollar was
adopted as a legal currency in 2009; since then the
Zimbabwean dollar has experienced hyperinflation and is
essentially worthless.
Exports: $3.301 billion (2015 est.): platinum, cotton,
tobacco, gold, ferroalloys, textiles/clothing.
Imports: $5.207 billion (2015 est.): machinery and
transport equipment, other manufactures, chemicals, fuels,
food products.
Major crops/agricultural products: Tobacco, corn,
cotton, wheat, coffee, sugarcane, peanuts; sheep, goats,
pigs.
Agriculture: 20% of GDP and 66% of the labor force.
Internet: Code: .zw; 6,759,032 users.
Source: CIA World Factbook

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