By Dorrothy Moyo| The Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has made claims that the wheat supply situation in the country is under control.
This was despite evidence showing that six millers have suspended operations due to shortages.
The Grain Millers Association of Zimbabwe (GMAZ) has warned that the country faces an imminent shortage of bread due to low levels of wheat in the country.
But Mangudya, quoted by the state media said the situation was “under control” as the central bank has put in place measures to ensure uninterrupted supplies of “essential imports.
The RBZ owes suppliers $12 million for grain supplied in 2016. But the wheat problem goes back to 2005. Since 2005, the national stocks have severely deteriorated, an impeccable memo reveals.
However in a memo from the GMAZ General manager to the group’s chairperson Tafadzwa Musarara, the GMAZ warned that the wheat levels had fallen to their lowest since 2005 owing to failure by the Reserve Bank of Zimbabwe to allocate foreign currency for the payment of the wheat.
Most of the wheat is imported from British company Holbud Limited which is already owed $12.5 million.
Reads part of the memo: “the national wheat supply situation has severely deteriorated to low levels since 2005…the available stocks are 28028.116 against a required minimum national three-month stock level of 114,000 metric tonnes. The current monthly national requirement is 38,000 metric tonnes.
Reserve Bank of Zimbabwe is yet to remit the USD 12,450,000.00 to the wheat supplier, Holbud Limited (UK), and the GMAI’s Ecobank Wheat account is adequately funded.
No remittance has been made despite the commitment made by RBZ Governor on 28 August 2018. Holbud Limited has grown impatient and threatens to divert stocks currently at Beira to Mozambique and Malawi Millers.
With respect, wheat and fuel are both in category 1 of the Reserve Bank of Zimbabwe foreign payment remittance priority list. Regrettably, fuel gets USD 21.000.000 00 per week religiously but wheat is not getting a paltry USD 12.450,000.00 per month for the entire national monthly requirements.
Self-raising flour has disappeared in many shops nationwide. Small bread bakers are stocked out. I strongly recommend that you alert the powers that be of this predicament as the country is fast plunging into severe flour and bread stock-outs in the next few days.”