Zimbabwe has the most expensive sugar in Africa. Here is why.

HON. MAKUMIRE: Thank you very much Mr. Speaker. Tongaat Hulett Zimbabwe, the giant sugar producer in Zimbabwe, is currently in the process of retrenching 1 000 employees and to date, more than 100 have already been laid off. The company is citing some hardships that are related to cheap imports that are coming in and the high cost of production that the company is experiencing. So the follow-up question now is, what measures is the Government taking to ensure that even the cost of production remains minimum or average? Thank you very much.

THE HON. SPEAKER: Hon. Minister, I am sure it is clear now.

HON. M. NDLOVU: Thank you Mr. Speaker. It is very clear now. I want to thank the Hon. Member for the follow-up question. I am not aware of the reasons why they are retrenching. I have had discussions, extensive discussions with Tongaat Hulett Zimbabwe and the importation of cheap sugar has not been raised as one of them. Indeed, they have highlighted that they have reservations about the 20% threshold that the Government came up with but we have had discussions with them because again as a country, our sugar is the most expensive in the continent. However, exporting companies  increase their costs and it reduces their competitiveness. Mr. Speaker Sir, as I have highlighted in my original response, there are a number of issues that have to be addressed in the sector. Among these interventions will be the introduction of other players in the milling industry. We cannot continue to rely on one company.

Secondly, we need to support our farmers to be more productive because as we speak, before me is a dispute between the miller and the farmer on  purchase price agreement. The farmer wants to push the price up because they are not productive. Pushing the price up means we are less productive and our sugar cost is high. Then they would require that Government bans imports. What we remain with are high sugar prices for local consumers.

I am also responsible for consumer protection. The whole sugar strategy, as I have highlighted Mr. Speaker Sir, we are interrogating it with the Minister of Agriculture so that we come up with a comprehensive plan, starting with high productivity for our farmers. I thank you.

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