Published by the government of Zimbabwe
Walter Muchinguri
19 August 2008
Harare — THE Reserve Bank of Zimbabwe has already allocated an additional US$10 million to the fertilizer industry for next month's production.
This was in line with the 2008 Mid-Term Monetary Policy Review Statement in which RBZ Governor Dr Gideon Gono announced that the central bank would be allocating US$10 million monthly to the industry for fertilizer production.
Dr Gono, who was in Bindura at the weekend to officially open the Mazowe Agricultural Show, said the central bank was already working on the next allocation.
He, however, expressed dissatisfaction with the volumes that have come through from the industry so far.
"The amounts that we have received are so low and they fall short of what the country requires," he said.
According to Chemplex Corporation's chief executive, Mr Misheck Kachere, the industry has produced 8 000 tonnes of fertilizer since they started receiving foreign currency from the RBZ.
The 8 000 tonnes are made up of 5 000 tonnes of Compound D and 3 000 tonnes of Ammonium Nitrate. The country needs at least 560 000 tonnes to satisfy demand.
The industry was expected to produce 1 250 tonnes of Ammonium Nitrate and 3 000 tonnes of Compound D per week against the monthly allocation of US$10 million.
In total, the industry was expected to roll out 25 000 tonnes of fertilizer against each allocation of US$10 million.
Prior to the injection of US$10 million the industry had been operating at 20 percent capacity and had managed to produce only 160 000 tonnes annually over the last few years.
Meanwhile, Dr Gono told farmers in the province that the central bank would seek to prioritise the allocation of inputs to those farmers that have shown the ability to produce for the nation.
He said they would use data collected by the RBZ teams who were buying grain from farmers to determine which farmers should be supported.
At 49 percent, Mashonaland Central had contributed the highest tonnage of grain to the GMB during the current season, Dr Gono said.
According to farmers in the province the lion's share of the maize came from farmers who had not received any assistance from Government, while some beneficiaries had contributed virtually nothing.
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