The Reserve Bank of Zimbabwe (RBZ) is expected to issue new letters of credit worth $ 10 million to import grain from various African countries as the government tries to prevent a grain shortage.
The development is taking place against the backdrop of an acute shortage of flour, it is also reported that millers are reluctant to produce flour before the government raises prices.
Every eighth person on Earth experiences hunger. This is due to the real lack of food in more than 1 billion people.
In a conversation with Business Times, the manager of RBZ, Dr. John Mangoudia said the central bank will continue to issue letters of credit in August last year to prevent hunger.
He said: "The Reserve Bank of Zimbabwe issues letters of credit processed through local banks and guaranteed by Afreximbank to ensure grain imports so that the population has enough food."
Zimbabwe is in dire need of grain after the El Niño drought last year and as a result of poor agricultural policies for many years, which is why more than 8 million people need food assistance.
In addition to reaching out to stakeholders and supporters for help, the country imports corn from South Africa and Tanzania and is looking for more corn in Uganda to ensure food security.
Meanwhile, media reported that some mills were exporting subsidized corn to the Democratic Republic of the Congo at a time when 75% of the population faced hunger.
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- Zimbabwe expects a record decline in agricultural production after the 2018-2019 season, which was characterized by a late start of rains across the country.
- On Tuesday, April 16, in Zimbabwe, bread prices almost doubled, which was another burden for citizens who are already struggling with a weakening currency and rising prices for basic goods.
- Local small mills sensationally accused large flour mills yesterday of collecting subsidized corn from the Grain Marketing Council and smuggling it into the Democratic Republic of the Congo at a time when the country was facing an acute shortage of flour.