Business

Chitora farmers target regional markets – The Herald

Victor Maphosa-Mashonaland East Bureau

Beneficiaries of Chitora Irrigation Scheme in Mutoko, Mashonaland East are now eyeing international markets, as demand for Zimbabwe’s agricultural produce surges.

Chitora is a smallholder irrigation project established by Government in 1994 to improve food and nutrition security, empower youths and create employment. It was further expanded in 2011 and 2014, but failed to work properly.

The Second Republic under President Mnangagwa has since revived it and it is now fully operational.

The scheme has 36ha divided into 3 blocks, distributed to 75 beneficiary families.

Block 1 has 9ha under drag hose sprinkler irrigation system with 18 beneficiaries at 0.5ha per household.

Block 2 section A has 9.5ha under drag hose sprinkler irrigation system with 19 households at 0.5ha per household while section B has 6.5ha under piped surface system with 13 households at 0.5ha per household.

Block 3 has 11ha under drag hose sprinkler irrigation system with 22 households with each household occupying 0.5ha.

Block 1 was established in August 1994 while Blocks 2 and 3 were established in 2007 and 2011 respectively.

The scheme specialises in horticulture and the main crops are carrots, peas, cucumbers, butternuts, groundnuts and tomatoes.

The irrigation scheme is well maintained with input from beneficiary farmers and the Department of Irrigation.

Well organised routine maintenance activities have resulted in the scheme having no major rehabilitation works done since its inception.

Mashonaland East Provincial Irrigation Engineer Alfonse Gamariel said irrigation schemes have helped improve the province’s food security.

He said besides Chitora, Mashonaland East is bestowed with thriving Government established irrigation schemes dotted across the province which and they contributing immensely to food security in the province and beyond.

“Climate proofing of agriculture through irrigated crop production has helped improve food security and nutrition in Mashonaland East province.

“A number of smallholder irrigation schemes developed in the province have managed to improve household food and nutrition security, income generation as well as reduction of substance and drug abuse through increasing employment levels amongst the youths.

“The newly-established Saparanyambuya Irrigation Scheme with 100ha in Uzumba Maramba Pfungwe, Muchekeranwa in Marondera District and Chivhu in Chikomba District have seen more youths and women farmers being incorporated into farming business through irrigated crop production.

For the first time, Uzumba Maramba Pfungwe District will be delivering over 120 tonnes of wheat to the Grain Marketing Board because of the successful wheat production at Saparanyambuya Irrigation Scheme.

“The smallholder irrigation schemes mostly in these dry regions have reduced the burden of the government in provision of food assistance programmes. Most of the smallholder irrigation schemes are significantly supporting government efforts to ensure food and nutrition security in the province and the nation as a whole.

“With evidence of climate change and the effects of El Nino in Zimbabwe, the construction of new and rehabilitation of non-functional smallholder irrigation schemes will help improve food and nutrition security in the communities among other several benefits,” he said.

He said as a result, construction of more irrigation schemes has resulted in employment creation for the youths and is helping curbing drug and substance abuse which has become prevalent in the country.

“Construction of more irrigation schemes will result in employment creation for the youths and help curb drug and substance abuse which has become prevalent in the country. It is against this background that we continue to lobby for financing of smallholder irrigation development in the province.

“On the same note, we also appeal to Government to avail funds for irrigation development and rehabilitation through our local commercial banks for access to individual farmers and institutions. Through our 200ha per District programme in the ministry, we are targeting at development of over 600ha under smallholder irrigation in the province next year.”

There is more than 5 600ha in the province with minor rehabilitation requirements so as to increase our area under irrigation. Rehabilitation of the 5 600ha under irrigation will see a significant increase in both summer maize and upcoming winter wheat production in 2024 season.

In effect, this will add a minimum of 56 000MT to the 2023/24 summer maize production and an additional over 33 000MT of wheat in the coming year.

Beneficiaries of this scheme said they are smiling all the way to the bank and commended Government for the programme that continuously uplifts their livelihoods.

Chairperson of the Chitora Irrigation Scheme Mr Ernest Chamanga said besides their breakthrough in local markets, beneficiaries are now vying for regional markets.

“Chitora Irrigation has 74 beneficiaries who are into farming. We plant cucumbers, onions, peas, vegetables, tomatoes, butternuts among other crops. But our major crop that we always have is carrot. We are supplying local markets and some of produce find its way to Mbare markets.

“However, we supply big companies like Choppies, Wilsgroove, Selby and other companies. Some of these companies pay in local currency while others pay in foreign currency. Buyers from Choppies come to our scheme every week and they pay on spot.

“We are happy to be supplying our local markets. Honestly, our standards of living have been improved through this scheme. We are now sending our children to best boarding schools.

“Some of us have even built beautiful houses while others are buying cars. We can see that our lives are improving and we are happy,” Mr Chamanga said.

He said besides supplying local markets, farmers are now eyeing regional markets and modalities are now underway for the plan to be implemented.

“We always look for better markets for our fresh produce. We want to thank ZimTrade for their facilitation in terms of markets. On that note, we have a team of our members who have already travelled to Mozambique to search for markets and I am happy to say preparations are underway for Chitora Irrigation Scheme to supply markets in Mozambique. Soon we will supply to Mozambique.

“Right now what is left is a few modalities to be completed so that we can start to supply Mozambican markets. We are happy to participate in the food security of Zimbabwe. It feels good to be feeding the nation.”

Speaking on the challenges they are facing, Mr Chamanga said the issue of power shortages is affecting the quality of produce since they will not be irrigating their plants continuously as is required.

He also encouraged other companies to pay in foreign currency preferably the United States dollars so that they can be able to buy other inputs that are pegged strictly in the currency.

Mr Chamanga said with the dedication and passion they have in as far as farming is concerned, the land they have is now small and appealed to authorities to avail more land so that they can maximise their potential.

He said some of the beneficiaries are youths and this has enabled to keep them busy and desist from unorthodox behaviours.

Mr Maxwell Samanyanga who is a farmer at the scheme said indeed his life has completely changed, thanks to the stance he took to make farming as a business.

“We have buyers from Choppies who come here and pay in cash. This scheme is benefiting my family. I am sending my children to boarding schools and I built myself a beautiful home. I am happy with my business such that I do not even wish to leave it or move to any urban centre because all that I need is here. I am living a good life, thanks to Government.”

“I want to thank Government for the land and all the support we got. We have Agritex officials who constantly visit us and give us expertise so that we thrive in our business. We will continue working hard to feed the nation,” he said.

Another beneficiary, Amai Kachidza, one of the farmers at the scheme said her life has completely changed.

“We are working hard in this scheme and earning a decent living. Our Government has done a good thing for us. So, depending on the season, I do diversified agriculture in terms of my crops.

“It is true that if one takes farming as a business, one can earn a good income even from a small piece of land. As formed, I will not look back. Government gave us this land and we should now door part. I call upon other beneficiaries to work extra hard. Let us feed the nation, as we also feed our families.”

Business

Mthuli squeezes consumers, businesses – NewsDay

In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.

GOVERNMENT yesterday announced a cocktail of tax increases, pushing up the cost of living and ease of doing business after reviewing its 2024 revenue projection upwards by 22,22% to ZWL$53,9 trillion.

In his 2024 national budget presentation in Parliament, Finance minister Mthuli Ncube increased taxes to raise an additional ZWL$10 trillion to meet the new revenue targets.

Treasury initially projected revenue collections to total ZWL$44,1 trillion for the 2024 fiscal year.

“Mr Speaker Sir, in line with the projected economic growth of 3,5%, total revenue collections in 2024 are estimated at ZWL$53,9 trillion, (18,3% of GDP), broken down as ZWL$51,2 trillion tax revenue and ZWL$2,7 trillion non-tax revenue,” Ncube said.

“Guided by the expected revenue envelope and the desired fiscal path, expenditures in 2024 are projected at ZWL$58,2 trillion (19,8% of GDP).”

Ncube announced an upward review on the Strategic Reserve Levy by US$0,03 and US$0,05 per litre of diesel and petrol, respectively, with effect from January 1, 2024, pushing up the cost of fuel.

Ncube also raised tollgate and passport fees beginning next year.

“I, therefore, propose an upward review of toll fees on premium roads, that is, Harare-Beitbridge and Plumtree-Mutare and other roads, with effect from January 1, 2024. Revenue derived from the increased fees will be remitted to the Consolidated Revenue Fund,” Ncube said.

“I, further, propose that passport and selected fees charged by the Central Vehicle Registry be increased, with effect from January 1, 2024. Additional revenue generated from the above measures will be ring-fenced towards road infrastructure development.”

Ncube also introduced a US$0,02 levy per gramme of sugar contained in beverages, a development that will push up the prices of beverages.

He said the move was in response to growing concerns on the adverse effects of the consumption of sugar contained in beverages. Tax on beverages has also been implemented in a number of countries, including in the Southern African Development Community.

Ncube also introduced a new wealth tax to ensure that high-income earners pay taxes.

“In order to ensure that every person contributes to the fiscus in line with their levels of income. I propose to introduce a wealth tax levied at a rate of 1% of market values of residential properties with a minimum value of US$100 000,” he said.

“Resources derived from the levy will be ring-fenced towards urban infrastructure development, in particular roads, water, sewer and community health centres. Principal private residential properties owned by elderly persons above 70 years will, however, be exempt from the tax.”

While the minister reviewed the tax-free threshold on incomes to ZWL$750 000, from the previous ZWL$500 000, inflation has rendered the move mute because of the rising cost of living.

Ncube also targeted foreign companies by introducing the domestic minimum top-up tax (DMTT).

The tax ensures that qualifying entities located in Zimbabwe with an aggregate effective tax rate below 15% be charged a top-up amount, raising the cost of doing business.

“Under the GloBE Tax Rules, where a tax incentive results in an effective rate of less than 15%, the tax jurisdiction where the multinational is headquartered collects the difference between the effective tax under the tax incentive and the minimum effective rate of 15% (the top-up tax),” Ncube said.

“The DMTT allows the country where the low tax profits arise from the tax incentive to collect the top-up tax rather than ceding taxing rights to the headquarter jurisdiction.”

He said the calculation of the DMTT would be based on the effective tax rate charged on the jurisdictional profits, not the jurisdictions’ statutory corporate income tax.

“I, therefore, propose to enact DMTT rules to guard against ceding taxing rights to foreign jurisdictions on top-up tax arising from tax incentives that are provided to those investments,” Ncube said. The corporate tax rate was also reviewed upwards to 25% from 24%.

Ncube, however, reduced the mandatory value added tax (Vat) registration threshold to US$25 000 from US$40 000, starting next year.

Operators with a minimum annual turnover of US$25 000, or local currency equivalent thereof, are now required to register for Vat.

Failure to register will see applicable penalties invoked, Ncube said.

He said traders registered for Vat purposes and in possession of valid tax clearance certificates would be eligible to procure goods from manufacturers.

“The tax deferred will, however, be fixed at the foreign currency amount payable at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of importation, albeit, payable in local currency at the prevailing exchange rate at the time of payment.”

Business

Mthuli squeezes consumers, businesses – NewsDay