Zimbabwe: Command Agriculture left Zimbabwe in USD2 billion debt: Business Expert
By Admire Machiwenyika – The Zimbabwean Agricultural scheme (Command Agriculture) aimed at ensuring food self-sufficiency that was introduced at the start of the 2016 – 2017 farming season following the drought of the previous season has left Zimbabwe in a USD2 billion debt according to business consultant/ Journalist Munyaradzi Mugowo.
Addressing journalists at a media training workshop on debt discourse hosted by Zimbabwe Coalition on Debt and Development (ZIMCODD), Mugowo indicated that Zimbabwe in a short period accumulated a USD2 billion debt contributing to the already recorded Zimbabwe’s National debt (domestic and external) of 18,4 billion according to Zimfact.
“Until 2014, domestic liabilities had not been a significant component of public debt in Zimbabwe as all public domestic debt had been cleared by the time the economy dollarized in 2009.
“Over a short period the Command Agriculture had left the government in a USD2 billion debt, after borrowing the money to boost the agriculture sector,” said Muguwo.
ZIMCODD director Janet Zhou added that Zimbabwe used to be the bread basket of Africa.
“Zimbabwe was known for being the bread basket of Africa but if we look at our nation’s current socio-economic situation, one wonders if the Southern African nation ever become the breadbasket of Africa having fallen from envy to pity and from fullness.
“Zimbabwe has fallen from being the breadbasket of Africa to being an empty basket moving around the world with a begging bowl for loans, aid and unfavourable investments,” she recalled.
The Command Agriculture scheme was introduced at a time Zimbabwe struggled with economic problems in an effort to try to revive the agricultural sector and the scheme targeted farmers near water bodies who could put a minimum of 200 hectares under maize per individual.
These were found to be 2,000 in total and each farmer was required to produce at least produce 1,000 tonnes of maize.
Each participating farmer was required to commit 5 tonnes per hectare towards repayment of advanced loans in the form of irrigation equipment, inputs, and chemicals, mechanized equipment, electricity and water charges, which most of these inputs was never payed back leaving the country in serious debt.
Farmers would retain a surplus product produced in excess of the 1,000 tonnes. The programme will cost $500 million. Each farmer will be earmarked to receive US$250,00.
