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The government has suspended duty on fertiliser imports by approved importers with immediate effect. This is meant to ensure adequate supplies for the 2024-2025 summer cropping season.
The announcement was made by Minister of Finance, Economic Development, and Investment Promotion, Mthuli Ncube, through Statutory Instrument 178 of 2024, published in the Government Gazette on November 8.
Under the new regulations, licensed and approved importers who bring in duty-free fertiliser but then sell it at the same or higher price than those who have paid duty will be required to pay the full duty, along with penalties.
Minister Ncube also stated that the list of reputable importers authorized to benefit from the duty suspension will be approved by the Minister of Lands, Agriculture, Fisheries, Water, and Rural Development, Anxious Masuka. Said Ncube:
<blockquote>
The Minister responsible for Agriculture shall approve a list of reputable fertiliser importers for the purposes of these regulations…
The Commissioner shall grant suspension of duty to an approved importer subject to compliance with section 34C of the Revenue Authority Act [Chapter 23:11].
The Commissioner shall not grant suspension of duty to an approved fertiliser importer where the importer does not have a licence issued by the Ministry responsible for Agriculture…
Any approved fertiliser importer who sells fertilisers for which duty would have been suspended at prices equal or higher than fertilisers on which duty is ordinarily payable shall be liable to pay the duty suspended and applicable penalties.
</blockquote>
Ncube also said that approved importers will be allowed to exhaust the ring-fenced allocations of 100,000 tonnes of urea and 150,000 tonnes of ammonium nitrate.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

The government is allowing some companies to import fertiliser without paying taxes to make sure there is enough for farmers next summer. The Minister of Finance made this announcement in a document called Statutory Instrument 178 of 2024. Companies who benefit from this rule but sell the fertiliser at a high price will have to pay the full tax later. The Minister of Agriculture will decide which companies can get this tax break. The companies can import a specific amount of fertiliser without taxes, but they have to follow the rules or face penalties.

Government Suspends Duty On Fertiliser Imports For Select Importers

Zimbabwe has taken delivery of part of Russia’s 25 000 metric tonne wheat donation and an additional 10 tonnes of fertiliser, reported <a href="https://www.newzimbabwe.com/zimbabwe-takes-delivery-of-25-tonne-wheat-donation-from-russia/">NewZimbabwe.com</a>.
The donation is part of Russia’s 200 000 metric tonne aid to six African countries including Mali, Burkina Faso, Eritrea and Central African Republic (CAR) which was announced at last year’s Russia-Africa Summit.
The Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Vangelis Haritatos said President Emmerson Mnangagwa will be officially handing over the donation to his ministry and GMB once all of it has been delivered.
Haritatos was speaking at Grain Marketing Board’s (GMB) Aspindale Depot in Harare on Friday. He said:
<blockquote>
Everything is in order, we are very happy with what we are seeing today, and everything seems like it is going very well.
We are very grateful to the Russian Federation for donating such a substantial amount of wheat stock.
The donation was 25 000 metric tonnes of wheat so we are almost there but we are expecting a few more trucks to come in from Beira and once we receive the wheat we are expecting President Mnangagwa to do the official handover.
The consignment started arriving a few weeks ago and we are only left with a few hundred tonnes for this consignment to reach 25 000.
The next consignment is the MRP and the NPK, so we are almost at the end of receiving both consignments of this donation.
</blockquote>
Zimbabwe has had two record-breaking seasons in the production of winter wheat and produced more than what the nation consumes.
However, the wheat produced locally cannot be used by confectioneries without being blended with imports from countries such as Russia.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Takes Delivery Of Wheat & Fertiliser Donation From Russia

The Government says traders and individuals are still free to import fertiliser and cement to guarantee availability and affordability.
In November, the Government allowed imports of fertiliser and cement by traders and individuals until the end of 2023 after the two critical commodities became scarce, pushing up prices.
Seasonal weather forecasts ahead of the 2023/24 summer cropping season indicated a high likelihood of normal to below-normal rainfall.
The country experienced hot and dry conditions in October and November, but most parts of the country have been receiving rain since mid-December, raising hopes that the season can still be salvaged.
The Permanent Secretary in the Ministry of Industry and Commerce Thomas Wushe said fertiliser imports will continue. He said (via <a href="https://www.sundaymail.co.zw/fertiliser-cement-imports-to-continue">The Sunday Mail</a>):
<blockquote>
We are not stopping fertiliser imports as the season looks much brighter than initially projected.
</blockquote>
Wushe also said cement imports will continue as the authorised amounts under previous permits have not been exhausted. He said:
<blockquote>
The permits haven’t been fully dispensed and imports are continuing.
The cement supply situation is improving and we will continue to monitor local production in consultation with the local cement companies.
</blockquote>
Before the Government allowed fertiliser and cement imports, prices had increased by as much as 100 per cent.
The price of cement had increased to around US$20 per 50kg bag, up from an average of US$9.
A 50kg bag of cement now costs around US$12.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Fertiliser, Cement Imports To Continue

Uralchem Group, a Russian fertiliser manufacturer, has reportedly fully loaded a humanitarian shipment of over 23 000 tonnes of fertilisers for Zimbabwe.
According to <a href="https://seanews.ru/en/2023/12/15/en-uralchem-ships-humanitarian-consignment-for-zimbabwe/">Sea News</a>, the consignment was loaded onto a vessel in the ports of Riga, Latvia, and Ghent, Belgium, and has started its journey to the port of Beira in Mozambique.
From Beira, the shipment, comprising bulk loads of potash and NPKS fertilizers, will be transported to Zimbabwe by land.
The shipment is facilitated by the United Nations World Food Programme (WFP), which has chartered a vessel to transport the consignment as part of UNCTAD-led efforts.
Uralchem Group will reportedly cover the sea freight and other delivery costs.
The delivery for Zimbabwe is the Group’s fourth donation in a series of humanitarian shipments of its fertilisers to Africa.
According to Sea News, to date, Uralchem Group has dispatched over 100 000 tonnes of fertilizers to Africa free of charge.
More than 77 000 tonnes of this amount was shipped from ports and warehouses in the European Union in cooperation with WFP to Malawi, Kenya and now to Zimbabwe.
Russia has been involved in providing aid and assistance to various African countries since the days of the wars of independence from the 1960s to the 1970s.
Since then, Russian aid to Africa has been on development projects, humanitarian assistance, and collaboration in areas such as education, healthcare, infrastructure, agriculture, and natural resources.
The intention behind these initiatives is to strengthen political, economic, and cultural ties between Russia and the world’s second-most populous continent.
Critics say Africa has a leadership crisis that makes the continent rely on handouts from other countries when it is endowed with abundant natural resources.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

23 000 Tonnes Of Russian Fertiliser En Route To Zimbabwe

The Government has given companies and individuals the green light to import 100 bags of cement (5 tonnes) and 100 bags of fertiliser (5 tonnes) duty-free with immediate effect until 31 December 2023.
In a Press statement issued this Wednesday, 08 November, the Minister of Industry and Commerce, Sithembiso Nyoni, said the move is aimed at alleviating the shortage of the products in the market.
She, however, said those intending to import the products above 5 tonnes will require import licences from her Ministry. Said Nyoni:
<blockquote>
Following the Cabinet update on the supply situation of cement and fertilizer, the Ministry of Industry and Commerce will have an administrative arrangement with the Zimbabwe Revenue Authority (ZIMRA) to alleviate the shortages in the market.
The arrangement will allow the importation of 100x50kg bags (5MT) of cement and 100x50kg bags (5MT) of fertilizer.
This arrangement will be implemented with immediate effect.
Companies or individuals will be allowed to import fertiliser and cement of the quantities shown above up to 31 December 2023 without the requirement of an import licence.
Quantities above this will require import licences from the Ministry.
This does not apply to commercial imports.
</blockquote>
Zimbabwe is experiencing an acute shortage of both fertiliser and cement which has resulted in prices shooting through the roof.
The shortage of fertiliser is negatively affecting a booming construction industry while the unavailability of fertiliser threatens the success of the 2023/24 summer cropping season.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Allows Cement, Fertiliser Imports Of Up To 5 Tonnes Duty-free

The Government has allowed farmers to import fertilisers directly from suppliers outside the country as the product is in short supply locally ahead of the 2023/2024 summer cropping season.
Speaking during the post-cabinet media briefing in Harare on Tuesday, Information, Publicity and Broadcasting Services Minister Jenfan Muswere said the local fertiliser industry is facing challenges and is unable to meet demand. He said:
<blockquote>
The local fertilizer industry is having challenges and the supply gap is being covered largely by imports.
The current fertilizer stocks held by the Zimbabwe Fertilizer Manufacturers Association (ZFMA) and those under the Collateral Management Agreement (CMA) have indicated that they have challenges meeting the surging demand ahead of the imminent summer season.
Meanwhile, the Government has approved that farmers import fertilizers directly from suppliers outside the country to augment local supplies whilst the Government develops a long-term solution to the fertilizer challenges.
</blockquote>
Zimbabwe’s national demand for fertilizers is estimated at 400,000 metric tonnes of basal and 380,000 metric tonnes of top dressing per annum for both the summer and winter cropping seasons.
Last month,  <a href="https://www.sundaymail.co.zw/eu-blocks-zim-fertiliser-consignment">The Sunday Mail</a> reported that around 23,000 tonnes of fertiliser donated to Zimbabwe by Russia have been blocked by the European Union (EU) due to its agricultural export blockade on Russia.
Muswere also said that the Government was allowing the importation of cement due to shortages in the market, which have caused hikes in the product’s price.
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Zimbabwe Allows Farmers To Import Fertiliser To Plug Shortages

Capacity utilisation in Zimbabwe’s fertilisers industry has fallen drastically, with local companies only able to satisfy about 15% of the national demand.
This came out in a new report by University of Zimbabwe economics lecturer, Albert Makochekanwa which was commissioned by the Ministry of Industry and Commerce.
According to the report, the low capacity is attributable to power cuts, limited working capital, limited foreign currency to import critical raw materials and high interest rates which discourage the companies from borrowing, among other problems.
The other major problems facing the fertiliser industry include the non-availability of key raw materials in bulk quantities in the local market, smaller profit margins and the non-availability of fertiliser endowments. Part of the report reads:
<blockquote>
On average, actual annual production is about 90,000mt which only satisfies 15% of annual national demand.
Evidence shows that idle capacity is mainly due to the non-allocation of foreign currency to import ammonia gas which is one of the major ingredients in the production of fertiliser.
The average fertiliser manufacturing or production capacity utilisation for the year 2022 in the fertiliser sector was 52%, while the figure ranged between 80% on the upper bound and 38% on the lower bound.
</blockquote>
According to the report, the fertiliser companies produced about 90 000 metric tonnes in 2022 against a national demand of about 780 000mt.
Out of the 780 000mt that are required to meet national demand, 380 000mt are top dressing, and 400 000mt are basal fertilisers (compounds and blends).
The consumption of 380 000mt of top-dressing is further divided into top-dressing direct application (that is ammonium nitrate (AN)) and input into compounds (urea).
The consumption of 400 000mt of compounds is further divided into phosphate, potassium and AN.
The low capacity utilisation has resulted in Zimbabwe becoming a perennial importer of fertiliser.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Local Fertiliser Industry Producing 15% Of National Demand

Farmers in Zimbabwe say they are experiencing an acute shortage of fertilizer, <a href="https://www.newsday.co.zw/local-news/article/200006263/farmers-hit-by-an-fertiliser-shortage">NewsDay</a> reports.
One Bulilima farmer told the publication:
<blockquote>
“We risk experiencing acute food shortages due to inadequate fertilisers. Government should urgently import fertilisers to avert the disaster. If no measures are put in place, farmers risk producing poor yields,”
</blockquote>
Another farmer in from Chirumanzu said:
<blockquote>
“The crops are at wilting stage. We are appealing to government to provide us with AN fertiliser as soon as possible. We only received 43% of AN, of which it’s not enough.
</blockquote>
Zimbabwe Farmers Union commented on the issue: 
<blockquote>
There has been a shortage of AN fertiliser in the market, and this is mainly due to the supply and geopolitical issues happening in Eastern Europe. The prices are also out of reach because there is more demand. Farmers are failing to access fertiliser, but alternatively we are urging them to use urea fertiliser to avoid the disaster.
Farmers must also use organic fertilisers. With the current crisis, farmers must take this opportunity to use other alternatives which helps to recondition the soil and improve its fertility. Every season we have challenges with AN fertiliser and there is demand during this time. So farmers should learn to use other alternatives rather than wait for the key fertilisers.
</blockquote>
Lands and Agriculture minister Anxious Masuka commented:
<blockquote>
 “Government is expecting 80 000 metric tonnes of Ammonium Nitrate. We have so far received 43 000 metric tonnes and we are hurrying the importation of AN. We are also activating the local supply, and so I expect that there will be an accelerated delivery of AN here in four or five days of the additional AN that is required.” 
</blockquote>
Zimbabwe is in the middle of its maize agriculture season and the crop typically requires Ammonium Nitrate fertilizer during this time. Maize is the staple of the country and is farmed by the majority of the farmers.

AN Fertiliser Shortage Hits Zimbabwe

Police in Lupane are appealing for information that may lead to the recovery of 140 bags of fertiliser that were stolen from a hall before they could be distributed to villagers.
The bags of fertiliser, comprising 82 bags of Compound D and 58 bags of Ammonium Nitrate, were either a Presidential Inputs Scheme or Pfumvudza Programme consignment.
In a statement, police said the fertiliser was stolen from Sipepa Community Hall between 30 October 2022 and 9 November 2022. ZRP said:
<blockquote>
Police in Lupane are investigating circumstances surrounding a case of theft that occurred at Sipepa Community Hall between 30/10/22 and 09/11/22 where 82 bags of Compound D fertilizer and 58 bags of Ammonium Nitrate fertilizer were stolen.
The stolen fertilizer was part of 600 bags of Compound D fertilizer and 600 bags of Ammonium Nitrate fertilizer delivered by GMB Tsholotsho to Sipepa Community Hall for safekeeping pending distribution to villagers.
</blockquote>
In an unrelated case, Police in Lupane have arrested one Michael Donga (28) in connection with the murder Josiah Moyo (51) whose corpse was found near Malumba Primary School on November 2022. Police said:
<blockquote>
ZRP Lupane is investigating a case of murder in which the victim, Josiah Moyo (51) was found dead on 11/11/22 near Malumba Primary School. The body of the victim was found with multiple bruises and blood on the nose and mouth.
The Police have since arrested Michael Donga (28) in connection with the case. Michael Donga was allegedly seen dragging the victim toward Malumba Primary School on 10/11/22.
The two had been involved in a dispute during a beer-drinking spree at Malumba Business Centre.
</blockquote>

140 Bags Of Fertiliser Stolen Before Distribution To Lupane Villagers

The government says the sharp increase in fertiliser prices is a result of global shocks and is not affecting Zimbabwe only.
Addressing journalists on the sidelines of the Regional Strategic Analysis and Knowledge Support System (ReSAKSS) conference, Agriculture Deputy minister Vangelis Haritatos said there is a need for the country to produce the fertiliser locally. He said:
<blockquote>
The fertiliser issue is an international shock and it has got nothing to do with Zimbabwe.
We did not cause any of it, but our farmers are unfortunately being inconvenienced by the increasing price.
This is something we cannot get away from, unfortunately, because a lot of raw materials, between 55 to 60% of raw materials in any fertiliser that’s sold within our borders and even our neighbouring Zambia, Malawi and Mozambique are all dictated by international prices.
</blockquote>
Haritatos added that the government will consider the high fertiliser price when it announces the new pre-planting grain price. He said:
<blockquote>
Going forward for the summer season, what we can guarantee our farmers is yes we agree that we do not like the price of fertiliser, it’s a worldwide issue, even if you go to Zambia they are selling fertiliser at a higher cost, but as government and Agriculture ministry, we will ensure that we take into consideration all input costs.
What farmers have to understand is that the high cost of fertiliser will be compensated by a higher producer price for our summer grains.
</blockquote>
At the beginning of January this year, a 50kg bag of ammonium nitrate was pegged at around US$37 but is now being sold for at least US$55. | <a href="https://www.newsday.co.zw/agriculture/article/200002602/fertiliser-price-increase-a-result-of-global-shocks">NewsDay</a>

Fertiliser Price Increase A Result Of Global Shocks - Haritatos

A local financial service, IH Securities, has implored the government to ensure the prices of fertilisers come down to enable farmers to take advantage of the rainy season and maximise production.
This comes as prices of fertilisers have sharply increased due to the current Ukraine/Russia conflict, with the two East European countries the main global producers of fertiliser.
According to market watchers, the price of a 50kg bag of fertiliser increased to an average of US$94 by the end of June 2022 compared to US$55 during the previous cropping season. Said IH Securities:
<blockquote>
However, above-normal rainfall for the 2022/23 farming season is being forecasted which could potentially result in increased production.
High fertiliser prices coupled with decreasing commodity prices could discourage farmers.
We believe the government will continue implementing initiatives that reduce the cost of farming so as to encourage higher production.
Assuming this plays out, we forecast increased agriculture production and potentially reduced cereal import bill.
</blockquote>
IH securities, which offers brokerage and advisory services, noted that companies such as Hippo present investment opportunities. It added:
<blockquote>
These are companies with the ability to exercise monopoly and price leadership. We are also attracted to companies with good management and a culture of value creation for shareholders.
Given the anticipated above-normal rainfall in the coming farming season, Hippo presents an investment opportunity.
Dairibord at current levels looks oversold, speaking to an opportunistic buy.
</blockquote>
| <a href="https://www.newzimbabwe.com/govt-urged-to-deal-with-exorbitant-fertiliser-prices/">NewZimbabwe.com</a>

Govt Urged To Intervene On High Fertiliser Prices

Farmers have expressed concern over high input costs, especially fertiliser, and have implored the government to intervene and eliminate “profiteering” by businesses.
<a href="https://businesstimes.co.zw/concern-over-high-farming-input-costs/">Business Times</a> has established that a 50kg bag of top dressing fertiliser is now selling at US$60, a 33% increase from US$45 last year.
The price of basal fertiliser has also gone up by almost 50% to between US$35-45 per 50kg from around US$25-30 last season.
Zimbabwe National Farmers Union (ZNFU) secretary general, Stewart Mubonderi called for “sensible pricing”. He said:
<blockquote>
We have an excessive profiteering problem in our nation, where individuals want to earn a lot of money in one night, but there will be very few buyers due to the high prices.
So we ask the corporations doing this to be sensible and provide farmers with fair pricing, and also the government to engage them constructively and ensure that these unwarranted price increases we are seeing are stopped and avoided.
</blockquote>
The president of the Zimbabwe Commercial Farmers Union (ZCFU), Shadreck Makombe, said the high input prices would negatively affect the 2022/23 season. Makombe said:
<blockquote>
There is a need for the government to intervene in the short term through targeted and time limited input subsidies so as to alleviate the plight of vulnerable farmers and to ensure affordable and viable inputs.
It [the price of diesel] has been going down. We would have expected the prices of goods to also go down in tandem with the going down of diesel, which is one of the major inputs in prices.
Unfortunately it’s not happening that way. So at the end of the day farmers are the ones who are suffering.
</blockquote>
Makombe proposed that manufacturers of farming inputs deal directly with farmers to eliminate middlemen in order to reduce the high prices.

Farmers Bemoan High Input Prices

The Minister of Industry and Commerce Sekai Nzenza said that the government has put in place measures to ensure sufficient fertiliser for the 2022-2023 summer cropping season.
Currently, there is a global shortage of fertiliser caused by Russia’s ongoing war in Ukraine.
Speaking in an interview with <a href="https://www.sundaymail.co.zw/zim-has-enough-fertiliser">The Sunday Mail</a>, Nzenza said the government will provide foreign currency to producers to import raw materials for fertiliser production. Said Nzenza:
<blockquote>
Local fertiliser producers in Zimbabwe have a production capacity of about 1.7 million tonnes per annum of NPK basal and top-dressing fertiliser.
In relation to NPK basal fertiliser, the requirement is 400 000 tonnes and for top-dressing, it’s 380 000 tonnes to ensure the availability of fertiliser for the forthcoming season.
The aforementioned figures are a clear indicator that the nation is prepared for the forthcoming season.
… focus is on capacitating manufacturers in order to ensure increased production.
Some members of the Zimbabwe Fertiliser Manufacturers Association (ZFMA) have invested in fertiliser granulation equipment, and this move is very likely to witness growth in affordable local phosphates in both granulated NPK basal fertilisers and NPK blends.
The plant is expected to be running in the fourth quarter of 2022 with a capacity of 120 000 tonnes per annum.
A similar plant with a capacity of 300 000 tonnes per annum is expected to be functional in the first quarter of 2023 and will guarantee a full supply of local NPK basal raw materials.
</blockquote>
Zimbabwe Commercial Farmers Union (ZCFU) president Shadreck Makombe welcomed the development but bemoaned current fertiliser prices which he said are too high. He said:
<blockquote>
Given the promises made by Government, we are anticipating that there will be no shortages this year.
However, prices are a bit exorbitant, so we encourage fertiliser suppliers to reduce their prices so that farmers are able to go about planting with no problems.
</blockquote>

Plans Underway To Boost Local Fertiliser Production - Minister Nzenza

Villagers in Murewa South constituency have accused the local MP, Nyasha Masoka (ZANU PF), of diverting bags of fertiliser to traditional leaders that were meant for them.
Reports suggest that more than 55 village heads were given 8 bags each to use next season for the Zunde RaMambo programme.
The fertiliser was distributed to the village heads on 24 March two days before the by-elections.
Villagers took to social media platforms, saying they expected the fertiliser to benefit communal farmers in Wards 19, 20 and 21. Said one of the villagers:
<blockquote>
There is a consignment of fertiliser that was delivered at Dombwe and we do not know how it was distributed. There was no transparency.
We hear the village heads were given the bags of fertiliser, and the question is why. Are these village heads the only ones who vote for ZANU PF?
</blockquote>
Masoka on Friday confirmed distributing the fertiliser only to the traditional leaders but denied vote-buying allegations. He said:
<blockquote>
This was not the presidential input or the command agriculture. It was for Zunde Ramambo, not for the other villagers.
If it was meant for the wards it could have been given to the sitting councillors, not an MP.
Chiefs are not the only ones who vote. Voting is done secretly and people decide who they want.
</blockquote>
Masoka replaced the late Joel Biggie Matiza who succumbed to COVID-19 in 2021.
<h4>More: <a href="https://www.newsday.co.zw/2022/05/villagers-attack-mp-over-fertilizer-allocation/">NewsDay</a></h4>

Villagers Criticise MP Over Fertiliser Allocation

The price of fertiliser has gone up again, with a 50kg bag of ammonium nitrate now priced at between US$55 and US$70, up from US$37.
The price hike comes at a time when the product is in huge demand following incessant rains that have been pounding most parts of the country, resulting in heavy leaching of soil nutrients.
In a statement on Friday, the Zimbabwe Farmers Union (ZFU) bemoaned the increase in the price of fertilisers, saying it has increased the cost of production. The statement read in part:
<blockquote>
There has been a significant rise in agricultural input prices, especially fertilizers to be more specific, nitrogenous fertilizers.
This has greatly increased the cost of production of most agricultural enterprises if not all.
Persistent rain the country is currently experiencing even increases the requirements of nitrogenous fertilizers as leaching increases.
</blockquote>
In April last year, local fertiliser manufacturers said the shortage of foreign currency had hampered production.
They said the Reserve Bank of Zimbabwe (RBZ)’s foreign currency auction system was failing to meet their needs.
<h4>More: <a href="https://www.newsday.co.zw/2022/01/fertilizer-prices-go-up-again/">NewsDay</a></h4>

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