Zimbabwean govt in bid to reduce inflation
Wednesday, 13 June 2007
HARARE, June 12 (Xinhua): The Zimbabwean government is set to boost agricultural production through provision of requisite equipment to farmers in a bid to reduce the country's spiralling inflation, an official said yesterday.
Speaking at the handover ceremony of agricultural equipment sourced for the first phase of the farm mechanization program through the Reserve Bank of Zimbabwe, the central bank governor Gideon Gono said the objective was to reduce inflation through increased food supply.
"The world must now know that our new focus is on production to generate foreign currency through increased production and exports, " he said, adding that inflation, which currently stands at 3,718 per cent, remained the country's number one enemy with food contributing 33 per cent.
It was anticipated that the foreign currency to be generated from increased agricultural productivity would among others go towards repayment of the country's bilateral and multilateral debts, procure fuel and purchase drugs for hospitals, he said.
The equipment handed over to various farmers included 925 tractors, 35 combine harvesters, 586 disc ploughs, 463 disc harrows, 78 vicon fertilizer spreaders, 241 book sprayers and 71 planters.
Gono said the equipment would also replace obsolete equipment that was adversely affecting agricultural productivity. He castigated some farmers who were charging exorbitant rates for equipment hire thus contributing to the rising inflation.
Gono commended the agricultural mechanization program, which he said would also bring about efficient land utilization and consolidate the land reform program that the government embarked on in 2000.
"RBZ will champion government's development program without fear or favour," he said. He said the disbursement of equipment was done under strict conditions following thorough screening that would see farmers being constantly monitored to ensure compliance.
The governor said the central bank had the power to repossess equipment from non-performers and give it to productive farmers.
The country received more than 400 tractors from China last month as part of the first phase of the mechanization program.
Phase two of the program was expected to commence before the commencement of the forthcoming summer season, Gono said.
Speaking at the handover ceremony of agricultural equipment sourced for the first phase of the farm mechanization program through the Reserve Bank of Zimbabwe, the central bank governor Gideon Gono said the objective was to reduce inflation through increased food supply.
"The world must now know that our new focus is on production to generate foreign currency through increased production and exports, " he said, adding that inflation, which currently stands at 3,718 per cent, remained the country's number one enemy with food contributing 33 per cent.
It was anticipated that the foreign currency to be generated from increased agricultural productivity would among others go towards repayment of the country's bilateral and multilateral debts, procure fuel and purchase drugs for hospitals, he said.
The equipment handed over to various farmers included 925 tractors, 35 combine harvesters, 586 disc ploughs, 463 disc harrows, 78 vicon fertilizer spreaders, 241 book sprayers and 71 planters.
Gono said the equipment would also replace obsolete equipment that was adversely affecting agricultural productivity. He castigated some farmers who were charging exorbitant rates for equipment hire thus contributing to the rising inflation.
Gono commended the agricultural mechanization program, which he said would also bring about efficient land utilization and consolidate the land reform program that the government embarked on in 2000.
"RBZ will champion government's development program without fear or favour," he said. He said the disbursement of equipment was done under strict conditions following thorough screening that would see farmers being constantly monitored to ensure compliance.
The governor said the central bank had the power to repossess equipment from non-performers and give it to productive farmers.
The country received more than 400 tractors from China last month as part of the first phase of the mechanization program.
Phase two of the program was expected to commence before the commencement of the forthcoming summer season, Gono said.