Zimbabwe

Commodity Price, Agri Input and Cash Liquidity Tracking Update, 30th November, 2016

Attachments

Major Highlights

  • The average selling price of maize grain across the targeted districts remained unchanged at $0.41/kg ($7.20 per bucket or typically $7.00 per bucket) from that of midNovember 2016.

  • Informal traders/private traders and GMB continue to be the two major suppliers of grain in the targeted districts. Grain Marketing Board (GMB) main Depots continue to sell maize grain at subsidised prices. GMB satellite selling points remain closed due to transport challenges and viability issues.

  • The average price of maize meal in retail shops remained stable at $0.58/kg from that of mid-November 2016.

  • The transition towards a cashless economy in the rural areas is being embraced as 58% of the interviewed clients transacted through e-wallets (an increase from 57% from MidNovember 2016) and 42% still using cash to make their purchases. Households are learning that the transaction costs are significantly lower when one purchases goods from a merchant with the e-wallet, than if they were to cash out and then purchase the same goods. They are paying school fees, purchasing maize from itinerant vendors, and selling their chickens all through their e-wallets.

  • The average selling price of sorghum and millet is $0.53/kg and $0.73/kg respectively.
    Millet and sorghum are less sought after, especially when maize meal and maize grain are readily available.

  • Bond notes which were released into circulation by the Reserve Bank of Zimbabwe on 28 November 2016 are not yet in full circulation in the rural markets as more than 96% of interviewed traders are yet to transact with the notes. Due to the liquidity crisis faced for more than four months the rural community is anticipating bond notes to ease the liquidity crunch. No artificial shortages of commodities have been noticed on the market since the introduction of the Bond notes. The bond notes were noted to be trading on 1:1 with the United States Dollar.