adminConrad Mwanawashe Business Reporter
The anticipated 2013-14 good agricultural season will breathe hope into the economy, while mineral output begins to show signs of improvement, a report on the economic performance for the first quarter of this year has shown. The State of the Economy Report: March 2014 prepared by the Ministry of Finance and Economic Development and released last week showed that the economy was on a recovery path premised on agriculture and the exploitation of natural resources.
This year’s bumper harvest signals the recovery of the agriculture sector which falls under the Food Security and Nutrition cluster — one of the four strategic clusters of Government’s five-year economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset).
Zim-Asset aims at achieving sustainable development and social equity anchored on indigenisation, empowerment and employment creation on the back of judicious exploitation of the country’s abundant human and natural resources.
The four strategic clusters are Food Security and Nutrition; Social Services and Poverty Eradication; Infrastructure and Utilities; and Value Addition and Beneficiation.
“As at 28 March 2014, about US$121.3 million was realised from the sale of 38.96 million kg of tobacco at an average price of US$3.11 per kg,” said Treasury in the report.
“This is compared US$117.2 million realised from the sale of 31.7 million kg at an average price of US$3.7 during the previous season.”
The recovery of the agricultural sector has also been recorded in the dairy industry. Statistics from the Dairy Services Unit in the Ministry of Agriculture, Mechanisation and Irrigation Development show that milk production for the five months to May 2014 increased by a marginal 0,5 percent in the five months to May 2014, compared to the same period last year mainly due to an increased herd and an availability of stock feed for dairy cows.
Raw milk production stood at 22 245 942 litres, up from 22 128 847 liters in 2013.
The report by Treasury showed that gold, coal and chrome registered significant increases in the period under review. Minerals also contributed the bulk of exports during the same period.
“Gold output increased to 1 168.8 kg in March from 1 059.5 kg in February this year,” Treasury said. “This was mainly on account of improved production by both large and small scale producers.”
This was, however, weighed down by the underperformance by nickel, platinum and palladium.
The report said manufacturing sector remained under pressure with a number of companies facing acute financing challenges in March.
Sales of consumer goods fell in March reflecting intensification of the liquidity crisis in the economy but mineral output is beginning to show signs of improvement.
The state of the economy report said that the liquidity constraints affecting the economy have resulted in weak demand, with consequences of decline in sales volumes.
During the month of February, exports decreased by 31 percent to record US$192,3 million.
The decrease in exports has been attributed to the declining productivity.
“Cumulatively, the exports for the two months stood at US$470,5 million. Minerals contributed the bulk of exports in the period under review,” the report said.
Online Reporter