By Rungano Dzikira
Government has procured 10 000 metric tonnes of maize worth US$2.5million from Ameropa, a South African (S.A) based company, in a move meant to offset maize deficit from local producers.
In a bid to save Government thousands of dollars, Treasury is contemplating discarding the use of middlemen or contractors in the purchase of grain imports, choosing to deal directly with suppliers, as this has proved less costly.
“We have since realised that we were losing out money by using middle-men, as such, we decided to test our procurement and logistic systems by by-passing our usual contractors,” said one official from treasury.
Government has over the years used Holbud, Asp Marketing and Export Trading Group (ETG) among other contractors for procuring maize from S.A though they usually lamented over unfavourable payment terms as well as exorbitant mark-ups.
“Last week, treasury realised ZW$46 million for procurement of at least 6 000 tonnes, where upon Government paid US $1, 5 million to Ameropa, leaving a balance of US $1 million to be paid later.
“On the contrary, contractors would have required cash upfront or confirmed letters of credit to acquire such,” he added.
The maize was purchased on a free carrier contract implying that Government is to arrange transportation from Free State S.A on an average costs of US$100/metric tonne. As such, the grain will land in Zimbabwe at US$350/metric tonne, which is still lower than the average US$390 charged by contractors.
Currently the External Grain Mobilisation and Logistics subcommittee and Grain Marketing Board (GMB) are mobilizing transport to ferry the produce. They have since approached the Zimbabwe Transporter Association, Beitbridge-Bulawayo Railway and National Railways of Zimbabwe (NRZ) to assist with transportation of the maize.
Analysts have welcomed these cost cutting measures and also urged Government to resuscitate the Road Motor Service to further reduce on transportation costs, as well as to consider reviewing its buying price from local producers as this continues to hamper on local maize production.
The maize marketing season is scheduled for the first of April, and producer price is still pegged at ZW$6 950/metric tonne, while private buyers are offering US$300 or ZW$12 000 to farmers.
Meanwhile, Uganda has offered the Zimbabwean Government 650 000 metric tonnes at US$380/metric tonne, ex-Beira meaning that the maize will land in Harare at US$480/metric tonne.
