Zimbabwe Farmers aid Zambia's Renaissance

Source from:  KAYANJE FARM, Zambia 07/16/2004

After a decade of ruin in the 1990s, Zambia's agriculture sector is enjoying a renaissance — due partly to an influx of white farmers from neighbouring Zimbabwe. From Zambia's point of view, the timing could hardly have been better. Its policy of providing land to local and foreign farmers — part of a strategy to broaden the country's economic base — coincided with a controversial land reform programme in Zimbabwe that put many commercial farmers out of business. "They have come to live here as equals . . . the new farmers have come to jump-start agriculture . . . they have boosted tobacco production in a short time," said Agriculture Minister Mundia Sikatana. Ejected from Zimbabwe, 56-year-old Chris Thorne is one of several such farmers helping to lead Zambia's agricultural recovery. In 2003, the Zambia Investment Centre said 125 farmers had settled in the country, with investments totalling US$107 million. The Tobacco Association of Zambia estimates that around 75 Zimbabwe tobacco farmers and their managers have settled in southern and central parts of the country. "Everything is pointing towards Zambia's success (in agriculture) due to good government policies," said Thorne at Kayanje farm, 50 km northeast of the capital Lusaka. "This farm is a huge expansion project . . . this coming season we will produce half a million kilos of tobacco. This year we are going to sell 220 tonnes of tobacco and we will also grow 40 hectares (100 acres) of wheat next year." Under a 10-year project pioneered by Barclays Bank Zambia, a unit of London-based Barclays, and Africa Leaf Tobacco (Zambia), a subsidiary of Universal Leaf Tobacco Co, farmers like Thorne get money to grow their businesses and pass on their skills to locals as part of the deal. The scheme is expected to spur a big jump in production. Chimwemwe Mtonga, Barclays Bank Zambia head of agriculture, said the country's total tobacco output was estimated at 16-18 million kg this year, of which 10 million kg would be contributed by the new farmers. Zambia's tobacco output in 2003 was around 7.2 million kg and 3.0 million kg the previous year. The expansion also means an increase in much-needed agricultural jobs and investment. On Kayanje alone, the current staff complement of 400 will rise to 600 in the 2004/05 season. "We will (slightly) raise the area for maize production from 240 hectares in the 2003/04 season to just about 250 hectares the coming season . . . this farm was not utilised for more than 25 years," Thorne said. In the previous three years, only 50 hectares was farmed on Kayanje. It is not all plain sailing. High inflation and continuous fluctuation of the kwacha currency worry the farmers. "Our profit margins are being reduced by high inflation as a result of a re-valued rand," said Thorne in a reference to South Africa's currency. Farmers buy the bulk of their raw materials from South Africa. Despite these concerns, Zambia is confident that agriculture will soon be a major economic driver for the country as it diversifies away from copper and cobalt mining. Thousands of hectares of virgin land are being offered free to local and foreign investors for agricultural activities. "There is no doubt agriculture is the future of Zambia and land will be given to anyone interested in growing cash crops," Lands Minister Judith Kangoma-Kapijimpanga said. As well as boosting its tobacco industry, Zambia plans to launch year-round maize growing in the country's vast wetlands and aims to increase output by around 40 percent to two million tonnes in the 2004/05 season. Sikatana has said preliminary indications suggest this year's maize harvest would exceed 1.4 million tonnes, from 1.2 million tonnes in the previous season. "Our aim is to increase maize production to two million tonnes in the coming season (2004/05) and thereafter we will be increasing our output by one million tonnes every other season," he said. The contrast with Zimbabwe's fortunes is striking. Once the breadbasket of the region, Zimbabwe is battling one of the world's highest inflation rates and widespread unemployment, a situation that many critics blame on government mismanagement, including its land reform programme. Although Zimbabwe told international donors in May it would not need emergency food aid on predictions of a bumper harvest, many analysts and Zimbabwe commercial farming groups have said the country could face a shortfall. Zambia, on the other hand, has bounced back from severe food shortages that affected more than 14 million people at their peak early last year. Enditem