Military

DATE=4/24/2003

TYPE=CORRESPONDENT REPORT

TITLE=ZIMBABWE/TOBACCO (L-O)

NUMBER=2-302534

BYLINE=TENDAI MAPHOSA

DATELINE=HARARE

CONTENT=

VOICED AT:

INTRO: The annual Zimbabwe tobacco auctions, which are key to the nation's economy, are under way. But as Tendai Maphosa reports from Harare, the prospects are gloomy because of a drastic reduction in this season's crop production.

TEXT: Tobacco is Zimbabwe's main foreign currency earner, and generally whenever the selling season starts, the country's foreign currency situation changes for the better.

But this year, while some foreign currency will be generated, it shapes up as much less than previous years, due to the projected reduction of tobacco produced. The Tobacco Industry Marketing Board says that between 110-million and 120-million kilograms are expected to be delivered to the auction floors.

But Wayne Parham, a vice-president of the Zimbabwe Tobacco Association, puts the figure much lower.

/// PARHAM ACT ///

As Z-T-A, we think the crop is no more than 85-million (kilograms).

/// END ACT ///

Mr. Parham says that figure would be the lowest since 1981 when, because of the uncertainty after independence in 1980, only 67-million kilograms were produced.

He attributes the steady fall in tobacco production from 236-million kilograms in 2000 to Zimbabwe's land-reform program, which has seen white farmers losing their farms to make way for landless blacks. Because of a lack of expertise and inputs, he says, the new farmers have not been able to maintain production at the same levels.

/// PARHAM 2ND ACT ///

In Z-T-A we had 14-hundred-70 large-scale commercial framers in the 2000 era and about four-thousand small-scale. We now probably have about six-thousand small-scale and 400 large-scale producing at this time.

/// END ACT ///

Zimbabwe Finance Minister Herbert Murerwa also has attributed the slump in the annual tobacco crop to the land-reform program. Addressing journalists Tuesday, the minister said the agricultural sector was going through, what he described as, a transitional period.

Zimbabwe is facing its worst economic crisis since independence 23-years ago and is experiencing severe shortages of basic commodities, as well as fuel.

The tobacco sales started Wednesday, on the first day of a planned three-day general strike called by the Zimbabwe Congress of Trade Unions in an effort to force the government to reverse a hefty price hike on fuel.

/// OPT REST /// Economist Tony Hawkins predicts that while the tobacco sales will improve availability of foreign currency, it will be down by 40-percent on last year's figures. He says that because the country has little fuel and is in arrears on payments for its electricity imports, whatever is earned will be used as it comes in, leaving nothing for the reserves. (SIGNED)

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