Categories: Stories

Why Zimbabwe is facing a food crisis

As the Zimbabwean economy continues to deteriorate, with rapidly-rising inflation, parallel currency rates, and declining service provision, whether electricity, fuel or water, the challenges of market exchange and trade become more acute.

Barter trade is more common, as prices fluctuate wildly and the value of physical and electronic money diverge. With poor mobile phone networks due to electricity outages, electronic exchange becomes more difficult too.

Collapsing infrastructure has an effect on production also. Fuel price hikes make transport prohibitive and irrigation pumps expensive to run. Desperate measures by government often make matters worse. The now-rescinded edict that all grain must be supplied to the state grain marketing board undermined vital informal trade.

Meanwhile, the notoriously corrupt “command agriculture” subsidy scheme directs support to some, while excluding others from the provision of favourable loans for government-supplied seed, fertiliser, fuel or equipment.

Economic and infrastructural collapse is threatening food security in Zimbabwe. Even if there is good rainfall this season, the crisis will persist. Farmers will plant, produce and market less this year. While food imports are needed for targeted areas and population groups for sure, this may not be the biggest challenge.

Stabilising Zimbabwe’s economy is the top priority, as economic chaos is causing a humanitarian crisis.- Zimbabweland

(322 VIEWS)

This post was last modified on December 9, 2019 8:23 am

Page: 1 2 3

Charles Rukuni

The Insider is a political and business bulletin about Zimbabwe, edited by Charles Rukuni. Founded in 1990, it was a printed 12-page subscription only newsletter until 2003 when Zimbabwe's hyper-inflation made it impossible to continue printing.

Recent Posts

Zimbabweans against extension of presidential term in office

Nearly 80% of Zimbabweans are against the extension of the president’s term in office, according…

October 11, 2024

Zimbabwe government biggest loser when there is a discrepancy in the exchange rate

The government is the biggest loser when there is a discrepancy between the official exchange…

October 10, 2024

What is wrong with Zimbabwe? It’s not the economy but the government and its leadership

Zimbabwe is currently in turmoil after it devalued its five-month old currency, the Zimbabwe Gold…

October 1, 2024

Zimbabwe devalues ZiG by 44%, reduces amount people can take out from $10 000 to $2 000

Zimbabwe today devalued its local currency, the Zimbabwe Gold (ZiG), by 44% to trade at…

September 27, 2024

Can today be the turning point for the ZiG?

Today is the third quarterly payment date (QPD) for the year, the second after the…

September 25, 2024

My 50 years of writing- Part Two

I left The Chronicle after nine years and returned to freelancing. I started The Insider,…

September 24, 2024