Diamonds to boost US$3.4bln budget: Biti
05/11/2011 00:00:00
by Business Reporter
FINANCE Minister Tendai Biti has said initial budget projections of US$3.4 billion will have to be revised to take into account proceeds from diamond sales after the Kimberly Process approved the export of gems from Marange.
“Our budget is worth US$3.4 billion. We have based this on the anticipated revenue. We had not factored in the diamond revenue that will increase following the decision by the KP,” Biti said while discussing his 2012 national budget in Harare last Thursday.
“I will engage with the Ministry of Mines and Mining Development because I am seriously considering increasing the Budget to factor in the KP decision.”
Last week, Kimberley Process experts meeting in the Democratic Republic of Congo (DRC) agreed to allow Zimbabwe to sell diamonds from the Marange fields in the eastern Manicaland province.
Zimbabwe, which has denied allegations of human rights abuses in the area, had been under sanctions since 2009 because of "significant noncompliance."
The KP decision allows all diamonds from the area to be sold with the country understood have stockpiled some 4.5 million stones valued at around $2 billion.
Mines Minister Obert Mpofu welcomed the development and insisted Zimbabwe would no longer need to beg for international assistance.
"We are going to shock the world. We are going to unleash our worthiness," Mpofu told reporters in Harare.
"Zimbabwe will no longer be begging for anything from anybody."
Labels: 2011 BUDGET (ZIMBABWE), DIAMONDS, KIMBERLEY PROCESS, OBERT MPOFU, TENDAI BITI
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No supplementary budget this yr: Biti
Posted by By Our reporter at 14 July, at 09 : 46 AM Print
FINANCE Minister Tendai Biti says there will be no supplementary budget this year when he presents his mid-term fiscal policy statement this month. He said the country’s economy did not have the capacity to fund any extra budget since it was already struggling to raise money to finance this year’s budget.
He was responding to a question from Mbire MP Paul Mazikana (Zanu-PF) during a question-and-answer session. Mazikana had asked him whether he would present a supplementary budget to cater for the civil servants’ salary increment.
“The position is that on July 26, I will present a mid-term fiscal policy review. There will be no supplementary budget. A supplementary budget presupposes that there is a capacity to increase your budget. There is no capacity,” said Minister Biti.
He said Treasury had only recorded a significant inflow of money in March and June, while the rest of the other months, revenue inflows were subdued. He said this painted a gloomy picture in terms of financing the 2011 national budget of US$2,7 billion.
“We were able to break the US$230 million monthly revenue collection target for these two months because they are the quarterly payment dates on corporate tax,” he said.
There will be a US$500 million budget deficit arising from the January salary increment, purchase of grain to complement strategic reserves, constitution-making process and travelling costs.
“We have spent over US$30 million on travelling and this US$500 million deficit does not include the cost of the referendum the country will hold,” he said.
Minister Biti urged people to brace for a “collapse of fiscal space and gnashing of teeth as people should tighten their belts.”
Any additional expenditure outside the budgeted programmes would mean other allocations or areas would suffer, Minister Biti said.
He said Government ought to get rid of 75,000 “ghost workers” and improve transparency and accountability on diamond sale proceeds.
He slammed the International Monetary Fund, which he said did not accord small and poor nations equal treatment, yet the United Nations treated all nations equally.
Responding to another question, Prime Minister Morgan Tsvangirai, expressed concern at ministers who failed to attend the question and answer session.
Nyanga South MP, Willard Chimbetete (MDC-T) had implored the PM to take “restrictive measures” (sic) against ministers who failed to attend the sessions.
“We are seized with this issue; in fact every Cabinet meeting on Tuesday we table all questions that are on the Order Paper. I will ensure that we give focus to the business of this House. I, however, see that there has been some improvement today,” said the PM.
Industry and Commerce Deputy Minister, Mike Bimha, said Government was now in its final stage before the operationalization of the deal it signed with Indian company, Essar for the joint venture to revive Zimbabwe Iron and Steel Company.
He said the loose ends that needed to be tied related to other ministries that dealt with power generation (Ministry of Energy), railway (Ministry of Transport) and Mines Ministry.
“The hope is that by the end of this month we should see the finalisation of the agreement with these other ministries.
“We would then not only see the payment of salaries but the payment of debts, locally and externally,” said Deputy Minister Bimha.
He said there were a number of issues that ought to be discussed and some of the activities would entail Essar making extra investments in other areas such as power generation and improvement of the railways.
He had been asked when salaries for workers would be paid and whether it was true that Government had surrendered 80 percent of its iron ore reserves to Essar.
Constitutional and Parliamentary Affairs Minister Eric Matinenga said the Constituency Development Fund for this year would only be paid to those legislators that had properly accounted for the US$50 000 given to them in last year’s budget and submitted returns.
He said only 60 MPs had submitted returns.
Labels: 2011 BUDGET (ZIMBABWE)
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COMMENT - Neoliberals are never clear about who actually benefits and owns this 'growth'.
Biti reveals US$700m budget black hole
Mid-term review ... Prime Minister Morgan Tsvangirai (right) listens to Biti's budget statement
26/07/2011 00:00:00
by Reuters/AFP
ZIMBABWE could record a US$700 million budget deficit for 2011 due to wage increases to public servants and grain imports, Finance Minister Tendai Biti said in a half-year budget review on Tuesday. Last November, Biti presented a US$3.2 billion budget of which US$2.7 billion was expected to come from domestic revenues and the remainder donor assistance.
Biti said the economy is on course to expand 9.3 percent this year, while inflation would probably meet the 4 percent target although the IMF predicted on June 16 that it may reach about 7 percent by December, up from 2.9 percent last month. Agriculture will expand 19.3 percent, while mining output leaps 44 percent, Biti said in his midterm budget statement to Parliament.
The government will need an extra US$700 million in revenue by the end of the year, he said, compared with the US$500 million fiscal deficit he forecast on July 13.
To narrow the shortfall, the government needs to eliminate 75,000 so-called ghost workers, who don’t do any work and are on the payroll, Biti said. It also needs to raise more funds from diamond sales.
“It is worrying to note that there is no connection whatsoever between diamond exports made by Zimbabwe and the revenue realised,” Biti said.
“We need to put in place proper mechanisms to monitor the movement of the diamonds from the point of mining, marketing, export and trade.”
The government plans to spend US$2.7 billion and generate revenue of US$2.25 billion this year, according to the budget presented in November.
Employee wages consume more than 70 percent of the national budget, Biti said.
Labels: 2011 BUDGET (ZIMBABWE), MORGAN TSVANGIRAI, TENDAI BITI
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Legislators say Biti brainwashing them
Posted: Saturday, November 27, 2010 6:12 am
ZIMBABWE'S Finance Minister Tendai Biti has been slammed by Members of Parliament for failing to recognise the importance of the work they do, by increasing their salary and allowances.
Speaking in Parliament after the presentation of Zimbabwe's 2011 National Budget Statement by Biti, the Zanu-PF House of Assembly Member Mwenezi East, Kudakwashe Bhasikiti, slammed the finance minister for pushing legislators and other civil servants "into deep and inextricable poverty".
Zimbabwe's civil servants earn an average of US$200 per month.
Bhasikiti was seconded by MDC-T Kuwadzana House of Assembly member Mrs Lucia Matibenga.
"It is quite surprising that we continue licensing ourselves into deep and inextricable poverty in our country against all odds," said Bhasikiti.
"We are failing to pay our civil servants a decent salary and reducing them to near slaves who work for a plate of sadza (Zimbabwe's staple) per day," he added.
"Today in our country, we have relegated the duty of paying civil servants the likes of teachers to the struggling poor parents and we are not even worried or ashamed of that development."
Bhasikiti also slammed the minister for failing to recognise the dignity of the teaching profession.
"The dignity of teachers who were the most respected people in our society has been reduced to beggars, they can no longer be respected by their pupils, students and the community they serve.
"They are now taken as a thorn in the flesh where poor parents sell their chicken and goats to raise their salaries."
The MP said Zimbabwe, with all its abundant resources, should be able to develop faster than countries like Botswana that had only one major resource, diamonds.
"Botswana has only one valuable mineral on which their economy is anchored – diamonds, but our diamonds in Zimbabwe are being recorded to be in excess of the values which are in Botswana and any other country.
"So ... government should take full responsibility in managing the national resources and reward handsomely, those who are carrying its national duty."
Bhasikiti added that Finance Minister Biti had "brainwashed" Members of Parliament yet again by saying the country does not have enough reosurces to reward them handsomely.
He said it was "disrepectful and shameful" that President Mugabe was paid a meagre US$1,700 a month, when the country had abundant mineral resources.
"I find it very disrespectful and shameful to declare to other nations that we have a Head of State who is being given US$1700 as a salary for the month, a government minister earning US$800, a legislator US$400 and a civil servant US$200."
Bhasikiti said that legislators were spending too much time trying to irk out a living rather than engaging in parliamentary work.
"At the moment, Members of Parliament cannot even invest two hours of their time to look at Bills, research on them to find the merits and demerits before they debate, because we spend most of the time chasing their problems or busy pirating."
Prime Minister Morgan Tsvangirai was last week slammed by the Progressive Teachers' Union of Zimbabwe for failing to recognise the importance of teachers in the country.
Leader of PTUZ, Raymond Majongwe, said the prime minister had made lfty promises to teachers which he failed to fulfil.
Majongwe, whose organisation had previously been critical of Zanu-PF, praised President Mugabe for his steadfastness in fighting for the economic empowerment of all Zimbabweans.
Labels: 2011 BUDGET (ZIMBABWE), MPs, TENDAI BITI
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2011 Budget under threat
By Zvamaida Murwira
MEMBERS of the House of Assembly have threatened to block passage of the 2011 National Budget if Finance Minister Tendai Biti does not agree to pay legislators and ministers US$3 000 monthly salaries.
The legislators from Zanu-PF and the two MDC formations were on Thursday united in their declaration. Sitting soon after Minister Biti presented his Budget, the legislators also said the Government should buy them new vehicles.
They said should salaries be raised to US$3 000, it would cost the State US$12 million per year, a figure they described as sustainable.
MPs currently earn around US$400 and the legislators say they have not been getting their sitting allowances.
Analysts have previously indicated that should the Budget not be passed, Presi-dent Mugabe might have to call general elections because the State will not be able to function.
Mwenezi East legislator Cde Kudakwashe Bhasikiti (Zanu-PF) moved the motion calling for the improvement of their welfare as well as that of civil servants.
The House unanimously adopted the motion, saying they would not be used as a rubberstamp for Bills from the Executive without interrogating them.
They said their welfare had over the years been overlooked and the only opportunity they had to flex their muscles was at a time like this when Minister Biti wanted them to pass the Budget.
On civil servants, they said teachers were relying on parents’ incentives.
Goromonzi North MP Cde Paddy Zha-nda (Zanu-PF),said Minister Biti’s perceived 8 percent economic growth had nothing to do with poverty alleviation.
"I want to appeal to Honourable Members that opportunity knocks on your door once in your lifetime and this opportunity that is before us today — we should not miss it.
"This is the last (Budget) knowing very well that next year there will be elections; we will be walking into poverty.
"We are our own liberators," said Cde Zhanda.
"It is common cause that if you want to control people, what you do first is to impoverish them then you subject them; this is what is happening."
On vehicles, he said many MPs were now pedestrians.
Cde Zhanda said like those in the executive and judiciary, legislators should have a personal and an official vehicle.
Failing to pay civil servants, he warned, would fan corruption.
"We have pretended to put up institutions that have not delivered at all — the Anti-Corruption Commission which has never prosecuted anybody despite various allegations of corrupt practices.
"Why is it difficult to do business in Zimbabwe?
"It’s because you are knocking on the door of a permanent secretary who earns US$200 with a US$10 million project, it does not make sense.
"In actual fact our situation scares away investors."
He urged legislators to rise above party politics to push for the improvement of their welfare.
MP for Zaka Central Mr Harrison Mudzuri (MDC-T) said a government was judged by how it paid its workers.
He said the salaries they were earning were not consistent with the title "Honou-rable".
His colleague from Uzumba, Cde Simba Mudarikwa (Zanu-PF), said failing to adequately pay MPs and civil servants would promote institutionalised corruption.
"We have inherited a situation that is very difficult . . . that people who were members of this august House always used to say ‘yes’.
"They were professional rubber stampers," he added.
Buhera Central representative Mr Tangwara Matimba (MDC-T) chipped in: "We are saying this Government should look more into the plight of civil servants, MPs and everybody who works for it instead of giving priority to foreign trips and parastatals that are getting broke, that are being siphoned by others in the executive.
Mhondoro MP Cde Bright Matonga (Zanu-PF) said the title "Honourable" came with a status that he said was not consistent with their salaries.
He said legislators had nothing to show to their families for spending so much time away from home.
"It is actually leaving a trail of destruction in our family fabrics and relationships," he said.
Minister Biti’s Budget proposals included US$1,4 billion for State workers’ salaries.
This is about double the US$733 million allocated to this end in 2010.
In his US$2,7 billion Budget Statement, Minister Biti said conditions of service for MPs and the judiciary — which have traditionally guided negotiations encompassing civil servants representatives — will now be determined by Parliament’s Standing Rules and Orders Committee and provisions of the Judicial Services Act respectively.
Zimbabwean legislators say they earn far less than their colleagues from around the world, and often cite the example of Kenyan MPs who are said to have gross salaries of above US$10 000.
Labels: 2011 BUDGET (ZIMBABWE), MDC CORRUPTION, TENDAI BITI
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Full Text: Biti's 2011 National Budget
By: Our reporter
Posted: Thursday, November 25, 2010 8:29 pm
THE Minister of Finance, Tendai Biti, presented the 2011 National Budget to Parliament on 25 November 2010.
The Budget, which has the theme "Shared Economy, Shared Development, Shared Transformation - Creating the Fair Economy" seeks to consolidate on the macro-economic stabilisation measures contained in STERP I and II, according to Mr Biti.
DOWNLOAD:
Biti's 2011 Budget StatementLabels: 2011 BUDGET (ZIMBABWE), TENDAI BITI
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2011 budget: Biti 'handcuffed'
by Nelson Banya I Reuters
23/11/2010 00:00:00
FINANCE Minister Tendai Biti presents his 2011 budget on Thursday but paltry government revenues and aid flows give him little room for manoevre and a big overhaul of the economy is beyond his remit.
The 2011 budget is expected to rise to $2.5 billion from $2.25 billion this year, reflecting a rebound in growth since the fractious government of President Robert Mugabe and Prime Minister Morgan Tsvangirai dollarised the economy last year.
But donors and investors are still withholding funds and up to 70 percent of government receipts go on the state payroll, giving Biti little ammunition to fire up the economy.
Investors dislike Mugabe's policies such as land seizures and his drive to transfer control of all foreign firms to local blacks.
More telling are the frequent wrangles in the unity government over policies, senior appointments, the pace of reforms and sanctions imposed by Western governments on Mugabe and his inner circle.
"There's very, very little that he can do alone and in the framework of a budget. The fundamental issues affecting the economy are not within his responsibilities but fall under national policy. He is handcuffed," economic commentator Eric Bloch said.
"We have got to demonstrate we have political stability and that the unity government is working."
Biti has projected 8.1 percent growth this year and 10 percent in 2011 due to a revival of mining and farming, although the IMF is far less optimistic, forecasting 2.2 expansion this year.
The economy contracted by as much as 40 percent from 2000 to 2008 due to mismanagement under Mugabe that culminated in hyperinflation of 500 billion percent in 2008.
Although inflation is now in single digits, analysts believe the country needs at least $10 billion to repair its dilapidated roads, power stations and water works.
Zimbabwe's main business organisation, the Confederation of Zimbabwe Industries (CZI), says an empowerment law seeking to transfer control of all foreign-owned firms to blacks was a threat to the economy and investment.
"Business needs clarity on the indigenisation process as this is negatively impacting on both foreign and local investment," it said in a pre-budget statement. "Politics is still the biggest threat to economic recovery."
Labels: 2011 BUDGET (ZIMBABWE), TENDAI BITI
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2011 Budget should give priority to agric sector: Experts
Business Reporter
THE 2011 National Budget should give priority to the agricultural sector to enhance productivity, industry experts have said.
Finance Minister, Tendai Biti will present his budget statement on Thursday. Despite limited resources, experts say agriculture should get at least 10 percent of the total budget as agreed by African leaders at the Second Ordinary Assembly of the African Union in Maputo in 2003.
Last year, the sector was allocated 2,47 percent of the national budget. This year, Government has already committed US$51 million input facility that covers about 440 000 A1, communal and resettled farmers.
Assuming that the funds are distributed equally, each household growing maize will receive about US$115, which is only enough to buy 50kg of AN fertiliser, 50kg of compound D and a 10kg of maize seed.
"As such, agriculture is a key enabler for the economy and increasing production should be prioritised," said chairman of portfolio committee on Budget, Finance and Investment Promotion, Mr Paddy Zhanda.
"To increase agricultural productivity, a policy that incentives farmers should be formulated. Pre-planting prices are also recommended as well as rehabilitation, maintenance and development of feeder roads especially in newly resettled farming communities should also be prioritised," he added.
Minister Biti has estimated that agriculture will grow by 19,3 percent next year, mainly driven by higher projected tobacco and cotton output.
Cotton farmers are likely to be encouraged to increase production in light of higher cotton prices, which are at a 200-year record high.
Cotton prices have been soaring based on higher global economic growth projections. Cotton Company of Zimbabwe managing director Mr David Mashingaidze said 2010/11 output is likely to be between 350 000 tonnes and 400 000 tonnes.
However, some critics say such growth may not be achieved considering little financial resources that the Government has committed.
Mr Zhanda said recapitalisation of Agribank remains paramount for provision of adequate funding to farming activities.
He said it was critical if the bank is to effectively provide leasing finance to farmers for the purchase of farm equipment.
"Agribank should be used to provide credit facilities in the range of US$10 000 and US$50 000 to communal and commercial farmers.
"Where a farmer fails to pay, the farm should be re-allocated to someone else who undertakes to settle the debt and resume production."
Agriculture is the mainstay of the economy, with 65 percent of the population’s livelihood directly dependent on the sector.
The sector also has strong backward and forward linkages with other sectors of the economy.
Over half of the inputs into agriculture are sourced from the manufacturing sector, which in turn receives 44 percent of farm output.
The Confederation of Zimbabwe Industries said revival of agricultural sector was key to improved performance in manufacturing.
"There is need for clear cut policies and strategies on reviving agriculture in Zimbabwe.
"What we normally have are announcements of producer prices, expected yields, expected deficit and import requirements," said the CZI.
Labels: 2011 BUDGET (ZIMBABWE), AGRICULTURE
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Bitinomics: the art of hoodwinking the public
By: Nancy Lovedale
Posted: Tuesday, October 26, 2010 3:19 am
THE recent revelation by Finance Minister Tendai Biti that "donors have let us down" makes for grim reading because he proposed a cash budget for Zimbabwe, which he described as “What We Gather Is What We Eat”. Although this phrase has almost become a cliché, Biti has not put it into practice.
Why did he budget for a Vote of Credit of US$800 million when his budget was a cash budget, or a “hunter-gatherer Budget”? Government received “very little” of the US$800 million it had hoped to get come from donors in the 2009/10 fiscal year, said Biti, in self-contradiction.
He made a Vote of Credit provision of US$800 million in the 2009-10 Budget, about a third of his overall budget for the year 2010; although he told the country that he would adopt a ‘Cash Budget’. A Vote of Credit doesn’t sound like cash budgeting.
Biti conceded during a budget preparation meeting in Gweru that the provision had been “wishful thinking” – (read as wishful thinking on his part).
He is the one who came up with the US$800 million figure – just under a third of the total budget of US$2,25 billion he proposed for 2010; while hoodwinking the public that we "were going to eat what we gather".
Regardless of how one feels about the actions of the donor community, the MDC-T led by Prime Minister Morgan Tsvangirai, cannot bemoan the lack of support for Zimbabwe. It is responsible for killing brand Zimbabwe and should not cry foul when the international donor community fails to support Zimbabwe.
Ironically Biti also made an interesting revelation that it will take a long time to go to the pre-1996 production levels in the country. In a sense, he is agreeing that the Zimbabwean government had made major strides between 1980-1996 to uplift millions of black Zimbabweans who had lived under the vicious and evil Apartheid system of Ian Douglas Smith.
The year 1996 was a watershed for Zimbabwe. It was the last year in which the country enjoyed cordial relations with its former colony, Britain. The Labour Government of Tony Blair came into power in 1997 and started a vicious international campaign against Zimbabwe, after it reneged on its obligations under the Lancaster House agreement.
The MDC became a proxy of that Labour government three years later; and an unwitting puppet. Today that party is a conjoined twin of the MDC-T.
If there's anyone who has let Zimbabwe down, it is not the donors. The donors have simply responded to the call by the MDC-T to leave Zimbabwe to "crash and burn". The donor community, for ten years, was strangled and threatened by Britain and US over Zimbabwe. The MDC-T took part in that process as well.
Prime Minister Tsvangirai indicated recently that he would draw from his "international resources" to ensure that the MDC-T won the next election. Biti should, therefore, ask Tsvangirai to mobilise these resources for the good of the country.
The revelation by Biti is as lame as his statement that "We are alone!" in the fight against poverty in Zimbabwe. We have been alone for the better part of the last decade. This is not some new revelation. Thanks to ten years of MDC-T disinformation and vilification campaign against Zimbabwe.
The snub by NGOs does not come as any great surprise to those with direct experience of the untrammelled cruelties of the MDC-T campaign.
Some of the most painful episodes in the history of our country were championed by the MDC-T and today it cannot stand as a champion of reconstruction; without taking ownership of its role in the destruction of Zimbabwe.
The party fought against our sovereignty, our self-determination and our right to our ancestral lands calling the land redistribution programme a farce.
Some of us are glad that Biti’s intellectual arrogance has been deconstructed and he has realised that his economics is flawed. Those who thought he had some lofty ideas about running a battered economy like Zimbabwe should think again. The minister has simply made a mess of himself by saying one thing and doing the other.
Those who pronounced him “The Best Finance Minister in Africa” are probably burying their heads in shame somewhere in Europe.
_____________________
Nancy Lovedale writes from Beijing, China. She is an avid supporter of Dynamos FC and Arsenal FC and can be reached via: nancy_lovedale *** yahoo.com
Labels: 2011 BUDGET (ZIMBABWE), DONORS, SANCTIONS, TENDAI BITI, ZDERA
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$30m inputs for farmers
By Farirai Machivenyika and Elita Chikwati
Government has awarded tenders to local firms for the supply of farming inputs to 400 000 families under a US$30 million facility for the 2010/2011 farming season. An additional 560 000 farmers will get donor assistance, bringing to 960 000 the number of families expected to benefit from the two facilities.
The schemes target communal, old rese-ttlement, A1 and small-scale farmers. Large-scale and A2 farmers will be catered for by an Agribank loan facility.
Agriculture, Mechanisation and Irrigation Development Minister Joseph Made made the revelations while answering questions in the House of Assembly on the state of preparedness for the forthcoming farming season.
"I have met with industry, that is fertiliser and seed manufacturers, and have already awarded tenders for supply of inputs to over 400 000 families that will benefit from the US$30 million facility," he said.
The companies awarded tenders to supply maize seed include Seed Co Zimbabwe, Pannar (Private) Limited, Pioneer Zimbabwe, Agpy and Agri Seeds.
Prime Seeds, Agricultural and Rural Development Authority and AgriSeeds will supply sorghum seed.
Windmill and ZFC will supply fertilisers and are already importing the commodity to cater for the deficit.
Minister Made said donors would provide additional support.
"The donors will support a further 560 000 families and what is left is support for the A2 farmers.
"The Minister of Finance (Tendai Biti) has, however, assured me that he will soon put up a facility for A2 farmers through Agribank."
The minister said beneficiaries under the US$30 million facility would pay for the inputs through a voucher system.
Those without cash would access them through public works programmes.
"All inputs distributed this year are not for free. They will be distributed through GMB and will be paid for; even those distributed through donors either through a voucher system or food for work programme," Minister Made said.
Households will each get 50kg of ammonium nitrate fertiliser, 50kg of compound D fertiliser, and 10kg maize seed or 5kg of small grain seed.
In an interview afterwards, Minister Made warned farmers against abusing the input schemes.
"Government is asking for full co-operation to ensure inputs are distributed fairly and there is no double dipping," he said.
He said the Agriculture, Local Govern-ment and Social Welfare ministries would monitor distribution, with GMB and Agritex officials involved.
"No NGO shall give inputs at night or outside the structures of the local authorities.
"I want to warn that Government will not accept what happened last year where there was selective distribution, resulting in others failing to get inputs."
He urged banks to support farmers.
"As Minister of Agriculture, I feel banks must be comprehensive in supporting farmers because we are anticipating a good season," he said.
Under normal circumstances, Zimbabwe requires about 600 000 tonnes of fertilisers for a successful season.
So far, 30 000 tonnes of top-dressing fertilisers have been imported in addition to the 120 000 tonnes manufactured locally.
Of the local production, 60 000 are compound D and the remainder are top-dressing fertilisers.
There is, however, a shortfall of 200 000 tonnes of top dressing and 170 000 tonnes of compound D fertilisers.
Speaking on behalf of the fertiliser industry, Windmill chief executive officer Mr George Rondogo said they required about US$185 million to import more of the commodity.
"Funding has been the major challenge affecting fertiliser production and importation.
"There is a low uptake of the fertilisers in retail outlets and this has worsened the situation," he said.
The prices for subsidised fertilisers for this coming season have not been set but during the winter season, a 50kg bag cost US$15.
The cost on the open market is between US$29 and US$32 and farmers have complained that the prices are too high.
Fertilisers are heavily subsidised in other countries, with a 50kg bag going for less than US$10 in Malawi. This has partly seen Malawi becoming a net exporter of grain.
Labels: 2011 BUDGET (ZIMBABWE), A1 FARMERS, A2 FARMERS, JOSEPH MADE
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Biti to start consultations for 2011 Budget
By: Ralph Mutema
Posted: Sunday, July 25, 2010 9:09 am
FINANCE Minister Tendai Biti, who was criticised for failing to capture key stakeholder views in his recent Mid-Term Fiscal Policy Review Statement, says he will begin consulting on the 2011 National Budget next month.
Mr Biti said the consultations seek to gather views from a broad spectrum of the economy. The finance minister, despite claiming on his website that the budgetary process should be inclusive, has failed to consult key stakeholders.
Mr Biti has opted to consult only the Zimbabwe Congress of Trade Unions (ZCTU) and the Confederation of Zimbabwe Industries (CZI).
In an interview with the press, after a barrage of criticism over his recent review statement, the minister said his ministry has already written to key stakeholders informing them of the impending programme.
“We will start consulting on the 2011 National Budget in August.
“So far, the ministry has sent out letters to various organisations that deal with labour and business,” he said.
The minister came under heavy criticism for omitting critical stakeholders in his pre-budget consultations.
Chairman of the House of Assembly Portfolio Committee on Budget and Finance Cde Paddy Zhanda accused him of making it a habit.
Muzarabani South House of Assembly Member Cde Edward Raradza said Mr Biti should identify critical areas of the economy that require urgent attention.
The Confederation of Zimbabwe Industries (CZI) and the Zimbabwe Congress of Trade Unions (ZCTU) were among the organisations he consulted.
Labels: 2011 BUDGET (ZIMBABWE), TENDAI BITI
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