The Grain Millers Association of Zimbabwe (GMAZ) has warned that levels of wheat in the country might lead to imminent shortage of bread.
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GMAZ General Manager, in a memo to the group’s Chairperson Tafadzwa Musarara, warned that the wheat levels had fallen to their lowest since 2005 owing to failure by the Reserve Bank of Zimbabwe to allocate foreign currency for the payment of the wheat, most of which is imported from British company Holbud Limited which is already owed $12.5 million
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“The national wheat supply situation has severely deteriorated to low levels since 2005…the available stocks are 28028.116 against a required minimum national three-month stock level of 114,000 metric tonnes.
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“The current monthly national requirement is 38,000 metric tonnes,” read part of the memo.
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The memo also revealed that Reserve Bank of Zimbabwe is yet to remit the USD 12,450,000.00 to Holbud Limited (UK), and the GMAI’s Ecobank Wheat account is adequately funded.
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“No remittance has been made despite the commitment made by RBZ Governor on 28 August 2018.
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“Holbud Limited has grown impatient and threatens to divert stocks currently at Beira to Mozambique and Malawi Millers,” added the memo.
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GMAZ said wheat and fuel are both in category 1 of the Reserve Bank of Zimbabwe foreign payment remittance priority list yet fuel gets USD 21.000.000 00 per week religiously but wheat is not getting “a paltry” USD 12.450,000.00 per month for the entire national monthly requirements.
“Self-raising flour has disappeared in many shops nationwide.
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“Small bread bakers are stocked out.
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“I strongly recommend that you alert the powers that be of this predicament as the country is fast plunging into severe flour and bread stock-outs in the next few days,” said GMAZ.
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The bread shortage threat comes at a time when the country is in a position of political uncertainty as to whether the new government will bring economic recovery.
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