Govt needs US$68m for maize purchases

grain reserves, an official said yesterday.
The Agriculture Marketing Authority, an agricultural marketing agency, will spearhead the fundraising initiative.
AMA chief executive Mr Rockie Mutenha told New Ziana the funds would be raised either through an issue of bills or bonds.
Government last year successfully raised funding for maize purchases through grain-bills.
“We want to raise US$68 750 000 to assist the Grain Marketing Board to acquire maize for strategic maize reserves,” Mr Mutenha said.
“We have already applied to the parent ministry for approval to approach financiers.”
Mr Mutenha said the money would allow the State grain procurer to pay farmers for deliveries on time.
The GMB has come under fire from farmers and farmer unions in previous seasons for failing to timeously pay for delivered grain. This, analysts argued, impacted negatively on agriculture planning.
The GMB is understood to be currently holding at least 55 percent of the country’s strategic grain reserve which is pegged at 500 000 metric tones.
Meanwhile GMB has ventured into tobacco production as a way of achieving sustainable growth.
GMB general manager, Mr Albert Mandizha, said GMB ventured into tobacco production during the current cropping season.
“A total of 79 bales have so far been delivered to the auction floors realising US$10 000 from 50 bales sold to date.
“We shall continue pursuing diversifying revenue streams to ensure GMB is self-sustaining,” said Mr Mandizha.
Mr Mandizha said GMB signed a Debt Takeover Agreement with the Government in 1996 authorising them to carry out commercial activities that earn money to sustain GMB.
“In 1996 we signed a Debt Takeover Agreement whereby the Government gave us a go ahead to carry out income-generating projects.
“We need to get money to meet operating expenses thereby tobacco production is just one of the many projects we ventured in,” he said.
Mr Mandizha added that they ventured into such projects as a way to get liquidity as well as reducing the burden on the Government.
“We shall continue pursuing diversifying revenue streams to ensure GMB is self sustaining,” he said.
GMB has called on the Ministry of Finance to help with funds needed in the projects they are carrying out to address the logistics challenge which include purchasing of vehicles, staff buses, ICT equipment and spares for rehabilitation of silos. – Business Reporter/New Ziana.