Zimbabwe Losing More Than US$200 million Worth Of Grain Annually
Zimbabwe is losing more than US$200 million worth of grain annually, according to the African Continental Free Trade Area (AfCFTA).
Mr Wamkele Mene, AfCFTA secretary-general, said the loss could be prevented if the government improved the storage and export of agricultural products.
Speaking to the Ghanaian media, Mene said Zimbabwe was losing more than US$200 million worth of grain annually due to a lack of storage and processing options.
He said finding a solution to the problem is particularly urgent considering the supply chain disruptions due to COVID-19 and the Russia-Ukraine conflict, The Sunday Mail reported.
Speaking at the first-ever Africa Sustainable Supply Chain Summit held in Accra, Ghana, recently, Mr Mene said:
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We are working with the Government of Zimbabwe and we have set a target . . . Zimbabwe must be a net exporter of grains by processing the excess capacity that already exists.
We have an interest in this as the secretariat since we want to see more trade in agricultural produce across the African continent.
He also hinted that other countries like Ghana are in line for similar engagements.
In Sub-Saharan Africa, food losses amount to $4 billion per year. These losses occur due to food rotting in various stages such as fields, farms, transit, storage, selling points, or homes. The Food and Agriculture Organisation (FAO) attributes these losses to a lack of cold chain facilities, inadequate storage, and insufficient agro-processing skills among smallholder farmers. The losses occur between the harvest and the point of sale.
The estimated food waste worldwide is around one-third, leading to economic losses of $1 trillion per year. In Sub-Saharan Africa, the estimated rate is slightly higher at around 37%.
Another estimate claims that Zimbabwe loses two-thirds of fruit and vegetables, 40% of root crops, and 21% of grains each year.
Mr Mene believes that the AfCFTA and its key pillars like the protocol on the transit of goods, customs procedures, and trade facilitation policies will give a boost to trade efforts. Without these, the ability to establish sustainable supply chain networks in Africa will be limited.
Mr John Denton, the Secretary-General of the International Chamber of Commerce, also supports the AfCFTA’s initiative, which is premised on enhancing supply chain processes and expediting the AfCFTA’s forecasted $450 billion annual contribution to Africa’s gross domestic product by 2035. He said this will integrate Africa more into global value chains, not only for primary commodities but also for manufactured goods and services, which will help keep value in Africa.
