Cabinet briefing: Need for enhanced power supply for continuous economic growth

ZIMBABWE CABINET THIRTY-THIRD POST-CABINET PRESS BRIEFING

15TH OCTOBER, 2024

1.0 UPDATE ON THE 2023/2024 SUMMER CROPS MARKETING, FOOD SECURITY OUTLOOK TO MARCH 2025 AND 2024 WINTER CROPS PRODUCTION

Cabinet received an update on the 2023/2024 Summer Crops Marketing, Food Security Outlook to March 2025 and 2024 Winter Crops Production, which was presented by the Minister of Lands, Agriculture, Fisheries,Water and Rural Development, Honourable Dr Anxious Jongwe Masuka.

As at 14 October 2024, a total of 237 710 metric tonnes of grains and oilseeds from the 2023/2024 summer season had been marketed, of which 48 334 metric tonnes were delivered to the Grain Marketing (GMB). The total grain and oilseeds marketed comprises 130 244 metric tonnes of maize, 28 748 metric tonnes of soyabeans, 8 156 metric tonnes of sorghum, 1 259 metric tonnes of sunflower, 51 299 metric tonnes of wheat and 18 004 metric tonnes of barley. The Government continues to put in place measures to ensure that farmers are paid on time. Current stocks of maize, wheat and traditional grains in the Strategic Grain Reserve stand at 228 712 metric tonnes, which is sufficient to last till January 2025. A total of 372 000 metric tonnes of grain is required to feed the rural people in need to March 2025 at 7.5 kilograms per person per month, while Primary school learners will require 55 408 metric tonnes to April 2025 under the Schools Feeding Programme. The shortfall of 199 432.54 metric tonnes will be met from the projected 240 000 metric tonnes winter wheat harvest surplus on annual requirements, and Government grain imports.

A` cumulative 185 132 metric tonnes of grain have been dispatched for social welfare distribution between February and October 2024. In order to expedite distribution of maize-meal to schools, given that only 13 711 metric tonnes of the expected 27 531 tonnes for the 3rd Term have been collected by schools, the Government of Zimbabwe will provide the required resources for milling, packaging and the logistics to move stocks to District GMB collection points which are closer to the schools.

Related to this, GMB is now operating 50 Agro-shops mostly in rural areas as part of price stabilisation efforts and enhancing the provision of affordable mealie-meal.

The private sector, which is expected to import all urban and stockfeed requirements to March 2025 has imported a total of 812 165 metric tonnes of grain since April 2024. The Ministry has issued 807 import permits to 420 companies to import 4 131 260 metric tonnes of maize to March 2025, against an estimated deficit of 1 million metric tonnes. The issuance of import permits, four times the estimated deficit has stabilised prices and eliminated arbitrage opportunities.

Meanwhile, the 2024 winter cereals production is estimated at 795 000 metric tonnes, which is 9,35percent above the originally planned production. A total of 114 761 metric tonnes of wheat has so far been harvested from 22 153 hectares, translating to an average yield of 5,18 metric tonnes per hectare. Wheat delivered to the GMB is 28 761 metric tonnes, out of which 26 417 metric tonnes is from ARDA-contracted farmers. In general, wheat harvesting is going on well, with 291 out of the available 391 combine harvesters deployed across the country for the exercise. Bird surveillance continues in all provinces, and the necessary manpower and equipment are in place to counter any threats identified.

Government introduced Ward Drought Mitigation Centres across all 1 620 wards. Treasury has availed the required resources for the establishment of all 1 035 Ward Centres in agro-ecological regions 4 and 5. The coordination of the various actors, including development partners, under the Drought Action Committee will ensure efficient use of scarce resources through avoidance of duplication of efforts. To date, the Government has saved 101 000 livestock from death by providing over 6 000 metric tonnes silage and water.

2.0 UPDATE ON THE 2024/2025 SUMMER CROPS PRODUCTION PLAN

The Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Honourable Dr Anxious Jongwe Masuka, also updated Cabinet on the 2024/2025 Summer Crops Production Plan, which was approved on 25 June, 2024.

The meteorological forecast has predicted a good rainfall season, with normal to above-normal rains. To further aid farmers in planning for the season, Government issues planning, pre-planting and marketing crop prices at appropriate periods of the season. Accordingly, the preplanting prices of maize, traditional grains and sunflower will be issued later this October and, for the first-time ever, a cotton pre-planting price

will also be announced.

The Summer Plan aims to increase cereal production to 3 274 200 metric tonnes. Overall production volumes of the major crops are expected to increase to 4 093 700 metric tonnes.

A total 5,9 million plots (translating to 63percent of the target) have been prepared under the Pfumvudza/Intwasa Presidential Agriculture ClimateProofing Input Support Scheme by 64% of the targeted farmers.

Technical teams have been dispatched to the provinces to expedite plot preparation. To date, over 40 000 metric tonnes of basal fertilizer out of the targeted 90 000 metric tonnes are now at GMB depots ahead of the 2024/2025 Summer Planting Season launch in Buhera tomorrow.

Meanwhile, contracting of farmers under the National Enhanced Agricultural Productivity Scheme (NEAPS) is ingoing. A total of 52 500 hectares is targeted to be contracted to produce 256 000 metric tonnes

of maize, traditional grains, soyabeans and sunflower.

The Agricultural and Rural Development Authority (ARDA) will contract 100 000 hectares in order to produce 390 000 metric tonnes of maize and 112 000 metric tonnes of sorghum. The private sector, which is mandated by policy to ensure that at least 40percent of its annual raw material requirements are met from value chain financing of farmers, has set a target of 95 046 hectares under maize, soyabean, sorghum, potatoes, sugar bean and sunflower. Furthermore, some farmers will self-finance various crops and access inputs on the open market. Pertaining to tobacco, a total of 107 836 growers have registered for the 2024/2025 season. The area planted under irrigated tobacco is 20percent above that recorded last year, while seed sales are 37percent higher.

Cabinet highlights that the 21 enablers being tracked under a “Whole of Government” and “Whole of Sector” approach for the successful implementation of the Summer Plan are Finance; Irrigation; Mechanisation; Water; Seed; Fertiliser; Chemicals; Power; Fuel; Pests and Diseases; Markets; Farmer Payments; Capacity Building; Insurance; Policy and Regulations; Coordination; Monitoring and Evaluation; Land Issues; Infrastructure; Security; and Disaster Risk Management.

3.0 MEASURES TO ENHANCE ZIMBABWE’S POWER SUPPLY SECURITY

Cabinet considered and adopted the Report on Measures to Enhance Zimbabwe’s Power Supply Security, which was presented by the Minister of Finance and Economic Development, Honourable Professor Mthuli Ncube, as Chairman of the Inter-Ministerial Committee established to analyse the issues.

In order to attain the Vision 2030 aspiration of an Upper-Middle Income Society there is need to enhance the supply of electricity to cater for the continuous growth of the economy, especially in the productive sectors.

Presently, there is a deficit of up to 400 megawatts in local generation capacity. The country currently imports 200 to 500 megawatts to cover the shortfall.

Despite now charging a cost-reflective tariff, the Zimbabwe Electricity Supply Authority (ZESA), still faces challenges which negatively impact its ability to deliver on its mandate of providing electricity to the nation.

Accordingly, Cabinet approved a raft of measures to enhance the country’s power security.

The structural challenges are being addressed by the Mutapa Investment Fund in a process involving bundling or merging of some entities under ZESA Holdings (Pvt) Ltd, as recommended by an independent consultant who was commissioned to undertake the task.

This will result in a more simplified and efficient governance and management structure.

Supply-side interventions include rehabilitation of Hwange Units 1 to 6 under a Build, Operate and Transfer arrangement which is set to commence this year. The Mutapa Investment Fund is also putting in

place measures to cater for the foreign currency requirements of Independent Power Producers. To address the low uptake of netmetering from solar-generated electricity, ZESA has been specifically directed to promote the facility and streamline the pertinent procedures and requirements in order to increase uptake. The loss of electricity during transmission is being attended to through the establishment of a joint venture between ZENT and QLV for the manufacture of cables, and in dealing with theft and corruption.

To enhance revenue collection, ZESA has been directed to speed up installation of pre-paid meters in order to effectively deal with debtors, while the Mutapa Investment Fund is establishing a foreign exchange discount facility against the ZESA debtors’ book to meet the current creditors. Investment in research and development involving ZESA,

ZENT and institutions of higher learning for the local manufacture of various parts of power generation and transmission equipment is being promoted.

Implementation of the foregoing measures will go a long way in enhancing ZESA’s capacity to deliver on its mandate of providing electricity to the nation.

4.0 PROPOSED INDUSTRIAL RECONSTRUCTION AND GROWTH PLAN

Cabinet considered and adopted the proposed Industrial Reconstruction and Growth Plan, which was presented by the Minister of Environment, Climate and Wildlife, Honourable Dr. Sithembiso G.G. Nyhoni, as Acting Chairperson Of the Cabinet Committee on Industrialisation and Export Development, Honourable Mangaliso N. Ndlovu.

Cabinet advises that the Zimbabwe Industrial Reconstruction and Growth Plan: 2024-2025 (ZIRGP) serves as a transitional framework for aligning industrial policy with National Development Strategy 2 (2026-2030), following the lapse of the Zimbabwe National Industrial Development Policy: 2019-2023 in December 2023.

The Plan will address immediate challenges faced by the manufacturing and commercial sectors, while laying a solid foundation for accelerated industrial development under Zimbabwe National Industrial Development Policy to achieve Vision 2030 aspirations.

In line with the 2025 Budget Strategy Paper theme of “Building Resilience for Sustained Economic Transformation,” the Plan will focus

on growth opportunities in the manufacturing sector by reducing costs of doing business, strengthening value chains, promoting Small to

Medium Enterprises (SMEs) linkages, improving ease of doing business, enhancing Government and private sector collaboration, while

considering developments in Bilateral and Multilateral engagements such as the African Continental Free Trade Area (AfCFTA), Southern African Development Community (SADC), and the Common Market for Eastern and Southern Africa (COMESA).

Cabinet also advises that on strategies to deal with commerce issues constraining industrial growth, the focus will be on quality assurance and trade measures, ease of doing business and formalisation of businesses.

Accordingly, on quality assurance, the Plan will enforce Consumer Protection and Trade Measures legislation as well as quality standards to safeguard against smuggled counterfeit, and substandard goods.

Regarding the ease of doing business, the Plan will ensure the cost of doing business is streamlined to enhance competitiveness.

In view of the fact that Zimbabwe’s economy has an informal sector, the Plan will introduce simplified registration and minimum mandatory licensing requirements that promote formalisation of the economy through the Shop Licensing Act. Measures will also be implemented to promote electronic transactions and the development of the Small to Medium Enterprises Formalisation Strategy. It will then be compulsory for all businesses to use Point of Sale (POS) machines.

Major focus to promote growth of the manufacturing sector will be on import substitution, manufacturing of raw materials for the manufacturing industry, utilisation of idle manufacturing assets, the local

content strategy implementation, value chain optimisation, rural industrialisation, export development, research and innovation for industrial development, and financing for manufacturing.

Stock-taking of idle infrastructure will be conducted with a view to legally and procedurally make them available to potential investors and businesses in need of operating space. The revitalisation of bus and truck manufacturing initiatives in the country will serve to unlock more funding.

Priority will be given to institutionalisation of the Buy Zimbabwe Programme, harmonisation of standards and establishment of specifications in promoting the public procurement of locally available goods. An incentive structure for companies procuring and supporting the local industry in an upward ratio of 70:30 for local versus imports will be developed and operationalised. The Plan will foster and facilitate linkages in all sectors through backward and forward linkages. Rural industrialization is at the centre of the Second Republic’s development thrust. Key enablers to the implementation of the rural industrialisation

drive includes identification of land for the development of industrial parks, identification of competitive and comparative advantage resource endowments and industrial projects in rural districts, setting up an InterMinisterial Committee on Rural Industrialisation which will periodically update Cabinet on progress. It should also be noted that rural industrialisation will take on board automation of existing industries to enhance competitiveness, and establishment of hubs across the country including within farming areas with a view of creating markets for agricultural products.

The Plan will prioritise export of value-added products, trade promotion, strengthening of regional integration, and active participation in the

African Continental Free Trade Area Guided Trade Initiatives. Furthermore, the proposal is to re-introduce export incentives to

motivate increased investments for exports. The Plan will pursue industrial transformation through research, development and innovation.

Emerging issues such as the use of Artificial Intelligence (AI), smart manufacturing and digital industrialisation will be taken on board.

To address challenges with access to affordable long-term financing, an array of options will be utilised including equity financing, private and Government funding. The Industrial Development Corporation of Zimbabwe will enhance its role as a Development Finance Institution.

Additional funding sources will also be pursued, including working with the Multilateral Finance Institutions. Efforts will be made to nurture and improve the environment for the participation of the private sector funding mechanisms.

Priority has also been given to harmonisation of the Plan with sectorspecific initiatives such as the Education 5.0 policy which seeks to move the nation forward toward an innovation-led and knowledge-driven economy. As such, plans to establish industrial parks as well as banks that will absorb and capacitate the graduates who have experience from working at university industrial hubs will be pursued.

5.0 UPDATE ON THE PREPARATIONS FOR THE HOSTING OF

THE 2024 REGIONAL WORLD CHILDREN’S DAY

CELEBRATIONS

Cabinet received and approved an Update Report on the Preparations for the Hosting of the 2024 Regional World Children’s Day Celebrations, which was presented by the Minister of Public Service, Labour and Social Welfare, Honourable July Moyo.

The 2024 Regional World Children’s Day Celebrations will be held at Baobab Primary School on 16 November, 2024. The event will be

attended by seven countries, namely: Botswana, Malawi, Mozambique, Namibia, South Africa, Zambia and Zimbabwe. The event will also be attended by approximately 5 000 to 10 000 children, with the majority of them coming from the Matabeleland Provinces, while 450 children will come from other provinces.

Local schools in Hwange are also expected to participate and attend the main event. A range of activities will be conducted across the country building up to the main event and most of them will be conducted in Matabeleland North Province and at Ndhlovu Secondary, School as a way of sensitizing Zimbabwean children on the historic Regional event. The activities will include school quiz competitions on children’s rights, sport tournament, gallery walks and school debates.

The Monumental Lighting will be done at the No Man’s Land post at the Zimbabwe-Zambia bridge. The post holds much pre-independence history which the children can learn from during their march and during the lighting ceremony. In terms of entertainment, selected traditional groups will perform during these key moments.

The Government will endeavour to have legacy projects at participating schools in the area. The schools have made proposals for these legacy projects.

6.0 PROPOSED THEME AND ACTIVITIES TO MARK THE 2024 SOUTHERN AFRICAN DEVELOPMENT COMMUNITY (SADC) ANTI-SANCTIONS DAY

Cabinet considered and adopted a Concept Paper on the Theme and Activities to Mark the 5th Anniversary of the Southern African

Development Community (SADC) Anti-Sanctions Day to be held on 25 October 2024 as presented by the Minister of Foreign Affairs and International Trade, Honourable Ambassador Fredrick M. Shava.

The Southern African Development Community Anti-Sanctions Day will coincide with the ZANU-PF 21st Annual People’s Conference, which will be held from 22 to 27 October 2024, in Bulawayo. The event will be held under the theme “Embracing Innovation towards Vision 2030: The Relentless Fight against Illegal Sanctions”. The theme is consistent with the 44th SADC Summit theme. The theme also acknowledges the efforts by the Second Republic to strengthen the economy through science, technology and innovation, which will go a long way in addressing the negative impact of illegal sanctions in the key sectors of the economy.

His Excellency the President, Cde. Dr Emmerson Dambudzo Mnangagwa will deliver a National Address. The President will also deliver a statement on Anti-Sanctions Day in his capacity as the Chairperson of SADC. Several activities have been lined-up to mark the SADC AntiSanctions Day and these include the following: SADC Anti-Sanctions Solidarity Summit which will comprise the Media Indaba, Roadshow, Cultural and Musical Events, Solidarity Marches and Public Awareness

Campaigns. Other activities include Innovation Exhibition by Primary and Secondary Schools, and Tertiary Institutions; Panel Discussions and Workshops; and a Documentary, among others.

7.0 REPORT ON THE RE-BUILDING OF THE MBARE TRADERS’ MARKET IN PARTNERSHIP WITH THE PRIVATE SECTOR

In the wake of the fire incident at Mbare Traders’ Market on 8 October 2024, Cabinet received and adopted the Report on the Re-Building of the Market in Partnership with the Private Sector, as presented by the Minister of Local Government and Public Works, Honourable Engineer Daniel Garwe.

Following the incident, which affected 4 695 traders and income generation capacity worth millions per day, His Excellency the President,

Cde Dr E.D. Mnangagwa, declared a State of Disaster at the Market. The declaration will facilitate appropriate response measures to the incident.

Pertinent to note is that similar fire incidences have been recorded at other markets in the City of Harare, with the primary causes being use of highly combustible materials and lack of fire-prevention infrastructure. The Harare City Council does not have the capacity to address the incidents.

The Government has to intervene and is promoting private sector participation to complement its efforts. Accordingly, Cabinet approved engagement of a leading engineering, construction and development  company to partner Government in re-building the Mbare Traders’ Market, under a Design, Engineering, Procurement, Construction and Finance (DEPC+F) model. This model will ensure that high-quality facilities are completed and commissioned within the shortest possible time. It will also allow traders to resume operations in an orderly environment that facilitates formalisation and payment of taxes.

The model can and will be replicated to upgrade other similar markets across the country.

Meanwhile, the Government will, under the disaster management framework, provide the necessary livelihood and social assistance support to ensure that the affected traders pull through the immediate difficulties they face. Longer-term sustainability and resilience-building mechanisms for traders will also be addressed under the framework.

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