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Stakeholder Workshop on the food situation in Zimbabwe - October 2002
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4. Private Sector Involvement in the Food Crisis, Challenges and the Way Forward
- by Mr Bara of Zimbabwe Regional Disaster Alleviation Trust
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4.1 Introduction
Mr Bara informed the participants that in the aftermath of the cyclone Eline disaster, it became apparent that Zimbabwe, as a country had not invested adequately in disaster preparedness and management. The Civil Protection Unit, which is affiliated to the Ministry of Public Service, Labour and Social Service found itself unable to cope with the crisis. People’s homes had been destroyed, as well as roads, schools and bridges. Thousands were left homeless and hungry, and the devastation to the environment was extensive.
Due to the political and economic situation at the time, the government was unable to cope financially with the disaster. Although international donors assisted our neighbouring countries, we were not so fortunate. A few private sector companies became involved in trying to assist those that had been affected by the cyclone. These companies worked hand in hand with the UNDP, the Civil Protection Unit, some government ministries and some non-governmental organizations. At the end of this exercise, it was clear that there was need to establish long term disaster preparedness and management mechanisms. The idea to form a Trust for this purpose was born.
PG Industries Zimbabwe Limited, for which Mr Bara is an employee, facilitated the formation and registration of the Zimbabwe Regional Disaster Alleviation Trust, whose main objectives include:
- To prevent, minimize, mitigate or alleviate natural disaster and their damaging consequences and to restore normal conditions as soon as possible after the occurrence of any disaster.
To meet the reasonable needs of those whose lives have been affected as a result of disasters, including destruction or devastation caused to the environment or to man.
- To arrange conferences, exhibitions, seminars and meetings to educate persons to prevent or minimize and advise them on what course of action should be taken when disaster strikes.
- For instance the Trust, in collaboration with NANGO, held a food coordination meeting at the Holiday Inn on the 27th of March 2002. The recommendations, which came out of that meeting, were presented to the President of this country, in an effort to work together to alleviate the food crisis.
- To do all such things as are incidental or conducive to the attainment of the above objectives or any of them (including the establishment of administrative operational facilities and the raising of funds).
Mr Bara informed his audience that the Trust is sponsored mainly by PG Industries Zimbabwe Limited and Econet Wireless Limited. Private sector organizations and representatives thereof such as the Business Leaders forum, EMCOZ, CZI, and The Bankers Association have all put their full support behind the Trust, hence its claim to be private sector driven.
4.2 The food crisis
When the President declared the food crisis in Zimbabwe a national disaster, it immediately fell into the main object of the Zirdat Trust and mandated it to play a part in alleviating the disaster. The Zirdat Trust has mobilized resources from the private sector such as storage space for humanitarian food and transport. It is in the process of compiling countrywide directories of organizations that have storage space and transport available for the use of NGO's and other players in the humanitarian food aid business. The Trust is negotiating with the Ministry of Finance for tax incentives in favor of any organization that donates in cash or in kind to it.
An appeal for donations to procure food for those that face starvation was made by the Trust, and the response was quite good from banking institutions, for which the Trust is extremely grateful. A permit to import 600 000MT of maize and 100 000MT of cereal was granted to the Trust by the Ministry of Lands, with the following concessions allowed:
- The use of the Forbes border post to avoid the congestion at major border posts.
- The use of government approved inspectors
- GMB permission to store maize meal at independent warehouses
- Assurances that trucks conveying humanitarian food to distribution points shall be allocated security agent if required.
- Security during the distribution process, where requested for, guaranteed.
- Permission to sell some of the imported maize/meal provided government stipulations to ensure that price controls are complied with, and provided for humanitarian purposes.
Mr. Bara informed the participants that all the listed concessions were won after negotiations with the relevant ministries or government departments. Although the process was frustrating at times due to red tape, they were always given audience when sought and their ideas were listened to, for which they were very grateful. The biggest achievement of the Trust has been to win the concession allowing NGO's and other organizations, as long as it is for humanitarian purposes, to utilize the above mentioned permit. It is hoped that this will facilitate the quick importation of food to avert starvation.
4.3 Challenges and constraints
The current economic situation has made it very difficult to raise substantial amounts of money from the local private sector. Donations have been trickling in slowly, but the Trust still hopes that a sense of corporate social responsibility, and a sprinkling of patriotism, will work in the favor of the Trust.
Mr. Bara identified the bureaucracy and red tape involved in the process of applying for import permits as a monumental challenge. There is no booklet which sets out step by step where one should go, whom one should see and what the requirements are. The three or so ministries involved each seem unaware of the other's requirements, which adds to the frustration. The process is time consuming and likely to discourage even the most zealous donor. There is a lot of suspicion and skepticism surrounding the food crisis, from all the stakeholders (the process has been politicized). In the process of vetting organization for their suitability to be food aid players, a lot of time is lost, at the expense of the beneficiaries. There is competition, however indirect, amongst organizations trying to raise funds to alleviate the food crisis. There is also a general perception, mostly from international donors that if you are not a UN agency, or affiliated to one, you are not capable of being apolitical, transparent and accountable.
4.4 Way forward
Mr. Bara outlined a number of issues as suggestions for the way forward:
- Having faced insurmountable challenges in raising foreign currency to purchase food for distribution for humanitarian purposes as originally intended, the Zirdat Trust has now offered the use of its permit to any organization intending to import maize/meal for humanitarian purposes.
- The importation process should be streamlined and the procedures and requirements consolidated under one department.
- Zimbabweans must help themselves by donating in cash, or in kind, to a humanitarian organization of their choice, to alleviate the food crisis, before looking to outsiders to do everything for them.
- Zimbabwean corporations ought to donate sufficient funds to assist local NGO's and government to acquire and distribute food.
- Negotiations with government must continue for permission to import maize/meal for supply at cost recovery prices.
- Government should prioritize allocation of foreign currency to food aid players.
- Government should consider allowing the supply of other foodstuffs to the domestic market at cost recovery prices in order to sustain the viability of corporations that are closing down.
- There have been allegations of the politicization of the food procurement and distribution process. There is a need for all the stakeholders to abandon the combative mode, and instead focus on assisting those in need using internationally accepted modus operandi in humanitarian crisis.
- The print and electronic media in Zimbabwe must abandon their polarized approach and political stances and refrain from influencing the international community not to give food aid to Zimbabwe, through biased reporting.
4.5 Conclusion
In his concluding remarks MR. Bara reminded colleagues in the private sector that they have reaped profits at one time or other from ordinary members of the public. Many still continue to do so and they cannot afford to let existing and future consumers of their goods and services perish. He observed that to those who are facing starvation, it does not really matter whether God is to blame for the drought or whether there is no food in Zimbabwe for other reasons. Everyone has a responsibility to assist those less fortunate. Corporations, government, NGO's, opposition political parties, religious and other civic institutions, and even the individual, should join hands and help alleviate the food crisis.
4.6 Plenary Discussion
After the presentation by Mr Bara the audience realized that indeed the private sector had an important role to play in alleviating the effects of the drought. They also acknowledged that they had never thought of the local private sector as a partner when they go out and look for resources.
However the participants wanted to know what the response has been from other members of the private sector to the call to support the initiative to source for food aid. Mr Bara was quick to say that the private sector players are historians and others would want to politicize the food crisis. The response has therefore been slow and cautious.
The role of banks was also raised. The purpose to which the tax on the financial sector is being put was sought. Issues that were also raised included the kind of action that is being taken to simplify the permit issuance system, and what had happened to the Strategic Grain Reserves.
On the permit system Mr. Bara told the participants that the private sector indicated to government that they were seeking a blanket permit under which a number of organizations would import the food aid as one organization. Once the food is in the country, NGOs would use their individual channels to distribute their quota in their respective geographical areas. The permit was granted.
There is a policy on Strategic Grain Reserves, which states that 500 000 tons should be kept as grain and the other 500 000 tons as cash. However it seems in Zimbabwe, the policy was not upheld hence the effect of the drought was immediately felt. Mr. Bara acknowledged that banks' response was not as expected, but they were starting, to respond, in a much more positive way.
Forex is not enough to meet all the requirements of the country e.g. fuel, electricity etc. But once the private sector is allowed to import maize and sell it at recovery rate to those who have money to buy at such rates, it is likely that they would use the foreign currency that they already have without going to government reserves. Tax concessions should also be considered for the private sector involved in maize importation.
In acknowledging the gravity of the problem facing the country participants agreed that there was an urgent need for a meeting involving the Head of State, Directors of NGOs and Chief Executives of the private sector. The purpose of the meeting would be to frankly update each other on the extent of the problem that is confronting the nation, assess the resources needs and come up with one program that deals with the crisis in a holistic way.
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