Maize import bill set to balloon

economy, as the rate of inflation could rise beyond the 5 percent target year this year.
Official statistics released last month indicated a drop in maize output compared with the previous season as some parts of the country experienced poor rains.
At 968 000 tonnes, the estimated maize output for this year is 33 percent below last year’s level and marks a reversal of an upward trend since 2009.
“The looming food shortages as a result of lower than expected maize output means the country will be faced with a huge import bill,” BancABC economist Mr James Wadi said in an interview.
“This deficit will have to be met partly from remaining stocks from last season.
“Looking ahead, upside risks to inflation remain strong and Zimbabwe’s inflation is thus bound to gradually rise with a possibility of breaking through the 5 percent mark by year end,” he said.
The anticipated increase of the import bill will also worsen Zimbabwe’s balance of payments position, which, in 2010, was US$1,3 billion in the negative.
The country’s import bill for 2011 stood at to US$5,6 billion, compared to export earnings at US$4,3 billion. Food shortages result in higher food prices, which in turn fuel inflation.
According to the United Nations Food and Agriculture Organisation since the beginning of the year, Zimbabwe has been experiencing maize price increases.