HARARE: The Ministry of Agriculture, Mechanisation and Irrigation Development has tabled a proposal for $543 million under the 2016 national budget to finance priority areas. This is an increase of 241 percent on last year. On the other hand, the Ministry of Lands and Rural Resettlement made a bid of $28,6 million for 2016, representing a 269 percent increase on 2015. Proposals from the two ministries reflect and underline the strategic importance of agriculture as an anchor of the economy.
Agriculture accounts for an average of 16 percent of the country’s gross domestic product, the bulk of employment, source of sustenance and 60 percent of raw material supply to manufacturing industry. While its central importance to the economy is beyond dispute it is also a fact that Government faces serious funding limitations; meaning the money may have to come from other sources, other than just Treasury, if the ministry is to realize its target of over half a billion dollars.
According to the Parliamentary Portfolio Committee on Lands and Agriculture’s report presented to legislators at a pre-budget seminar last week, the funds should come from Government, private sector and donors.
Chairman of the committee Mr Christopher Chitindi said the ministry has four key priority areas namely crop production development, marketing, livestock production and marketing, food and nutrition security infrastructure as well as policy, legal and regulatory environment.
The bulk of the funding, $454 million or 83 percent of resources requested, has been earmarked for crop production development and marketing. “The bulk of the financial resources under crop production will be set aside for payment to farmers $200 million, input support worth $150 million and provision of loans to farmers amounting to $100 million,” he said.
Mr Chitindi said that the ministry’s priority of livestock production development and marketing requires $4,2 million or 0,7 percent of the bid. “The Ministry of Agriculture needs to strengthen its veterinary health services, especially in the provinces which are prone to foot and mouth (disease) outbreaks, given that the Government has indicated plans to resume beef exports to the European Union,” Mr Chitindi said.
The Ministry of Agriculture has also prioritized establishment of infrastructure related to food and nutrition with a proposal for $84,6 million, representing 15,5 percent of the total vote targeted in the next budget.
It plans to develop new irrigation infrastructure and rehabilitation of old ones. Last year, the ministry managed to develop 20 new irrigation schemes and rehabilitated 228 hectares of irrigation infrastructure. The other priority is the policy and regulatory environment, which requires $430 000 or 0,07 percent of the budget to develop and update policies, monitor food imports and exports among other areas.
Mr Chitindi said the committee however noted with concern that the ministry made a request for $100 000 to monitor food imports and exports.
“This is grossly inadequate, given that the country has been flooded with cheap food imports, some which are suspected to be genetically modified organisms, which are banned in the country,” he said. The Ministry of Lands and Rural Resettlement’s priority areas include the provision of security of land tenure, management of land information, valuation and compensation of farms acquired by Government.
They also include commissioning and maintenance of international boundaries, policy formulation, pronouncements and reviews, land acquisition, rural resettlement, land commission, recruitment, retraining and performance monitoring, acquisition and auditing of assets.
As such, $6,4 million is required for provision of land security of tenure. The money will be used for issuance of 5 000 A1 permits, 99 year leases totalling 150 to A2 farmers, 30 title deeds, 50 leases for homesteads, 100 trading sites permits, 1 000 A2 farm survey diagrams and examination and approval of 5000 township survey by end of 2016.
The ministry of lands has also requested for $9,4 million for valuation and compensation of farm improvements while $2,3 million is needed for land acquisitions and rural resettlement with a target set to acquire 3 000 hectares to settle 1 800 families, Mr Chitindi said.
