The Chronicle
Oliver Kazunga, Senior Business Reporter
THE Grain Millers Association of Zimbabwe (GMAZ) has lauded the Government for implementing measures that have stabilised prices and facilitating adequate supply of essential products to the market.
The Reserve Bank of Zimbabwe (RBZ)’s weekly Foreign Currency Auction Trading System, which replaced the fixed exchange rate, has received wide stakeholder endorsement. As at Tuesday this week, the Zimbabwe dollar was trading at $81,67 against the United States dollar, having maintained commendable stability in previous months.
This, coupled with money supply control interventions, has empowered the productive sector to access more foreign currency and stabilised prices. GMAZ has also commended the Government for being proactive by embracing policies that promote positive economic development as the country emerges from the adverse impact of the Covid-19 pandemic.
“The grain milling industry welcomes the local currency stability, which has consequently brought about price stabilisation and adequate supply of essential commodities on the market,” said the millers in a statement.
“This positive economic development has come timely as the country slowly emerges from the Covid-19-induced lockdown and enters the festive season.
“We greatly applaud the Government and the monetary authorities for their competent interventions, which has birthed this progress.”
GMAZ said it was working closely with the Government to ensure that gains achieved so far are sustained in the interest of promoting food security at household level.
“The Pfumvudza/Intwasa programme will be the biggest maize import substitution programme that will deliver millions of low-income households from charity basket to self-sustenance,” it said.
The Government introduced the Pfumvudza/Intwasa model this year targeting to improve food production for 1,8 million households across the country.
“The multiplier effect of this initiative to our economy is sustained, and we fully rally behind this noble and production programme,” said GMAZ.
Due to low maize and wheat output levels induced by the adverse effects of climate change over the years, Zimbabwe has largely been relying on maize and bread flour imports from countries like South Africa, Brazil, Argentina and Russia. Zimbabwe requires 1,8 million tonnes of maize annually and between 400 000 and 450 000 tonnes of wheat.
The millers noted that the prices of maize and wheat on the world market have started to surge due to depleted yields in the leading producing countries.
“As expected, upward changes on the import parity prices have now started to manifest. GMAZ is now working with the Central Bank to mitigate on these increases and protect consumer spend ahead of the festive season,” said millers.
“We are glad to inform the nation that the supply of maize and wheat in the country currently dwarfs anticipated festive season demand. Maize meal, bread flour, rice, salt and others will be adequately available nationwide.” — @okazunga.
