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Presentation by Mandivamba Rukuni ZIMASSET Awareness Seminar for Members of Parliament Harare International Conference Centre 12-13 March 2014.

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Presentation on theme: "Presentation by Mandivamba Rukuni ZIMASSET Awareness Seminar for Members of Parliament Harare International Conference Centre 12-13 March 2014."— Presentation transcript:

1 Presentation by Mandivamba Rukuni ZIMASSET Awareness Seminar for Members of Parliament Harare International Conference Centre March 2014

2 ZIMBABWE NATIONAL NUTRITION SURVEY – 2010 Zimbabwe's biggest nutrition challenge: Children between 6-59 months of age are stunted Impaired brain and cognitive development Poor school performance Impaired productivity and earnings Increased risk of dying from infectious diseases (more than one-third) Associated with reduced school performance equivalent to 2-3 years of schooling Associated with reduced income earning capacity (22% average; up to 45% has been reported!) Increased risk of non-communicable diseases in adult life Stunted girl is more likely to give birth to undernourished baby Reduced GDP by 2-3% Stunting is irreversible!

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4  Why has Zimbabwe become a nation of Traders not Producers?  How did Agriculture lose its status as Autonomous sector?  Why the de-industrialisation of Zimbabwe leads to demise of Agriculture?  Can global food markets guarantee Zimbabwe’s food security?

5  Zimbabwe MOST EDUCATED and MOST HARD-WORKING people on continent BUT cannot feed itself!!  No great nation where Government and Business have no common agenda- Learn from the BRICS-  Food is national security  Business sector- grow out of ‘self-pity’, get more organised, this is war  Educational system- we don’t need thinkers who can’t DO; need more “THINKER-DOER” education  Religion- get rich quick syndrome breeding more greed, crooks and criminals

6  Water, Roads/Rail, Electricity– are the infrastructure backbone of the economy  Agriculture and Agribusiness – are the economic backbone of the economy

7 AFRICA AVERAGE 40% Urban 50% food consumed by Urban 50% food consumed by Urban 60% of all marketed food urban WEST AFRICA EAST AND SOUTHERN AFRICA

8  Beverages  Fruits and veg  Grain Millers  Grocery Manufacturers  Meat Packers  National Bakers  Pharmaceuticals

9  Tea Growers  Zimbabwe Sugar Associations  Stockfeeds Ass  Retailers  Leather and Allied Industries  Timber  Furniture

10  It is more strategic and more sustainable to promote and modernize smallholder farming Small Farms Can:  use land more efficiently  produce cheaper and more nutritious foods  increase own incomes and productivity  promote equity, hunger, and poverty reduction AND average farm size will continue to decline due to sustained rural population growth

11  A1 land, in my opinion, is where land policy should really open up to a regulated land market  A1 landowners will be the most vibrant and most diverse commercial force in Zimbabwe’s rural areas.  The farmers are already more responsive to market signals than A2 and large scale farmers.  These farmers won’t be stuck inflexibly to a few commodities as with large-scale farmers.

12  The A1 farmers will do much more if given a more conducive land rights regime.  These farmers will form the new frontline commercial suppliers of manufacturing sector,  especially raw materials for food, beverage, textile and other manufactured products.  The intermediary business sector is the source of new growth

13 THE CHALLENGE  Insecure land rights and poor liquidity in the market has compounded the challenges of farming  The banking sector has limited understanding of smallholder farmers and vice versa  State banks (Agribank) and parastatals have shrunk and that may be the case for some time.

14  What is now needed is proper financial intermediation  With dollarization, it is now feasible to increase domestic savings in rural areas  Require minimum bank savings and investment into rural sector

15 1. Short-term (seasonal) finance for inputs and working capital. 2. Medium-term finance 2-5 years (for machinery, irrigation infrastructure, etc.) 3. Long-term finance 6-25 years (for land acquisition, dams, etc.)

16  Decline in supply of raw materials both local and imported.  Locally sourced raw material supply declining  The price of sourcing raw materials has also increased significantly

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19  With the provision of a Land Commission in the new Constitution it would be strategic for the Commission embarks on establishing a Land Bank as well as a Land Acquisition Compensation Fund.   The two have to be completely independent but strategically, the success of one depends on the other.  All A2 land shpuld be on Land Bank balance sheet


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