The parliamentary Portfolio Committee on Lands, Agriculture, Water, Fisheries, and Rural Resettlement in Zimbabwe has expressed concerns over delayed payments to farmers and transporters by the Grain Marketing Board (GMB).
The committee summoned the GMB Finance Director, Clemence Guta, over revelations that the board was paying grain producers on the date of delivery, despite delays of payment by months at times. The late payments in Zimbabwean currency are detrimental to farmers and transporters of agricultural inputs, given the rate of depreciation the Zimbabwean dollar is going through.
The Gokwe-Nembudziya representative and chairman of the portfolio, Mayor Wadyajena, asked Guta whether it was fair to pay farmers on the delivery date despite the vulnerability of the local currency.
The issue of payment and its mode was also highlighted by David Tekeshe, the Member of Parliament for Makoni Central, who cautioned the GMB against promoting side marketing by failing to settle farmers and transporters’ arrears, as it could lead to the marketing of most GMB products outside of Zimbabwe.
Tekeshe added that he suggests giving farmers US dollars, as this would protect their investments. He explained that if a farmer is paid in Zimbabwean currency, they would not be able to purchase fertilizers at bank rates, as most of these manufacturing companies reject payments made in Zimbabwean currency.
Guta, as part of his presentation, countered that the farmers had been paid in full. He added that GMB was still waiting for funding from Treasury to pay out the forex component.
Based on the statement by Guta, as of April 2, 2023, transporters were owed ZWL 3.59 billion, and GMB had requested a float of ZWL 1 billion and USD 1.5 million to pay the total outstanding balance.
