Zim unveils $142m in farm aid
2009-07-10 22:28
Harare - Zimbabwe will provide $142m in aid to small-scale farmers as the country struggles to revive its shattered agricultural sector, Finance Minister Tendai Biti said on Friday.
Biti also told a foreign investor conference that the government would allow farmers to sell their harvests freely rather than to state monopolies.
"We are going to provide $142m to our small scale farmers, for the provision of this year's summer crop," he said, without explaining how the money would be spent.
"We are going to resuscitate the commodities exchange where you can sell your maize or tobacco freely," Biti told the 400 delegates at the three-day conference.
Importing maize
Zimbabwe expects to harvest 1.5 million tons of its staple grain maize this year, but will still need to import 600 000 tons to meet its food needs.
Agriculture was once the backbone of Zimbabwe's economy, but production collapsed following President Robert Mugabe's land reforms that saw white-owned farms forcibly resettled by blacks in a chaotic scheme marred by politically charged violence.
Consecutive years of drought have only worsened the situation.
Biti also insisted government will not revive the local Zimbabwe dollar which was abandoned earlier this year - despite remarks to the contrary by Mugabe last month.
'Zim dollar is dead'
For most of the year Zimbabwe has used US dollars, South African rands and other hard currencies for all of its dealings, after the local currency was left worthless by a decade of world-record hyperinflation.
"Its a very simple issue. The Zimbabwe dollar is dead and it is moribund. It is not our intention to re-issue the Zimbabwe dollar unless we can achieve at least four percent growth rate per annum," Biti said.
"Unless there is confidence, legitimacy and trust, we are not going to revive the Zimbabwe dollar. We are trying to establish trust and confidence, restore credibility and consistency. There is no reverse of policies," Biti said.
- SAPA