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Volatile exchange rate delays govt’s urban food relief program


By
Costa
Nkomo 

The
government
has
allocated
US$13
million
for
the
program,
which
is
being
implemented
through
electronic
cash
transfers.

The
amount
is
equivalent
to
ZWL$4.50
at
the
parallel
market
rate
(US$1:
ZWL$45)
or
ZWL$13.6
at
the
interbank
rate
(US$1:
ZWL$26).

Information
Minister
Jenfan
Muswere
confirmed
the
program’s
launch
at
a
recent
cabinet
media
briefing.

“Disbursement
of
funds
to
beneficiaries
with
correct
details
has
since
commenced
under
the
Urban
Cash
for
Cereal
Programme
and
a
total
of
28
726
beneficiaries
have
been
reached
with
cash
disbursements
as
of
28th
October
2024,”
Muswere
said.

Public
Services
Minister
July
Moyo
attributed
the
slow
rollout
to
changes
in
the
exchange
rate
and
challenges
in
registering
vulnerable
urban
residents.

“We
have
been
slow
in
registering
the
people
who
deserve
to
have
food.
Our
target
was
1.7
million
people
and
all
the
urban
areas
have
been
working
very
hard.
This
28
000
represents
a
very
small
number
of
what
we
are
distributing,”
Moyo
admitted.

“We
were
delayed
also
because
we
wanted
to
recalibrate.
At
first,
we
benchmarked
with
US$8
dollars
per
person.
In
a
family
of
five,
that
will
mean
US$40
dollars
translated
at
US$1:
ZiG13.6.
That
immediately
changed
and
we
had
to
rework
such
that
we
can
use
the
latest
rate
at
US$1:
ZiG24,”
Moyo
added.

Meanwhile,
the
government’s
second
blitz
food
distribution
program,
which
aims
to
deliver
139
854.94
metric
tonnes
of
cereal
across
the
country,
has
reached
62.7%
of
its
target,
moving
94,527.64
metric
tonnes
as
of
October
22nd.

Zimbabwe
is
facing
a
severe
drought,
caused
by
the
El
Niño
phenomenon,
which
has
destroyed
over
80%
of
the
harvest.
The
country
has
appealed
for
US$3
billion
in
international
aid
to
address
food
insecurity
affecting
an
estimated
nine
million
people.