Govt Denies Owing Seed Companies US$62 Million
The Government has rejected claims by the Zimbabwe Seed Association (ZSA) that it owes seed houses a total of US$61 778 000 for seed supplied to various programmes for the 2022/23 and 2023/24 seasons.
ZSA on 18 November 2023 issued a statement in which it cited 11 association members, ARDA, Easiseeds, Farmbiz Genetics, Intaba Trading, Klein Karoo Seed Marketing, Prime Seeds/Seed Co vegetables, Quton, Reapers, Seed Co, Tocek, Zimbabwe Technology Solutions, as being owed millions by the Government for seed that they supplied under the Presidential Inputs Programme (PIP).
ZSA claimed that on average, seed houses were owed payments below 50 per cent of the seed supplied in the 2022/23 season, and nearly all the seed supplied this season, covering field, horticultural and fodder crops.
However, in an interview with The Manica Post on Thursday, Lands, Agriculture, Fisheries, Water and Rural Development’s Permanent Secretary, Obert Jiri said the Government does not contract all the 11 companies listed by ZSA.
Jiri stated that ZSA should separate what seed houses owed each other and what is owed to the company contracted by the Government. He said:
The Government does not contract all the 11 companies (listed). Ask them who has a contract for seed who has not been paid. They should indicate which companies and avoid blanket statements.
I have read that statement, and it is unfortunate because it blankets everything as if the Government is contracting all the 11 seed houses when we are not.
It needs to be contextualised — they need to state how much each company is owed; and which companies are owed by the company (contracted by the Government).
We need to avoid where they trade between themselves and ascribe that to the Government.
The correct position is that the Government does not contract 11 companies, so that statement is misleading.
If you go back to the originators of that statement, they should be able to segregate to you, first, which company is contracted by the Government, second, segregate what they trade between themselves and then ascribe what exactly is owed to the company contracted by the Government.
That should give you a clearer picture. As it is that blanket statement is misleading.
The Government is reported to be the biggest buyer of seed, which it distributes to hundreds of thousands of smallholder farmers across the country under programmes such as Pfumvudza/Intwasa.
But with no payment from their biggest customer, seed companies are defaulting on bank loans, laying off staff, and planning to scale back on production.
As a result, experienced growers are refusing to sign new contracts with seed companies because they have not been paid for 2023 deliveries.
Seed producers are unable to secure the foreign currency they need for imports such as hybrid seed of sunflower and sorghums and parental seed, which they say helps localised certified seed production.
ZSA said that a request to the government for US$15.5 million from six seed producers “so far got no response”.
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