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Volatile exchange rate delays govt’s urban food relief program

By Costa Nkomo 

Zimbabwe’s government has so far disbursed funds for the cash for cereal programme to 28 726 urban residents out of a target of 1.7 million people facing food insecurity.

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.

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