by Cuthbert Nzou
HARARE – Zimbabwe on Monday issued 90-day grain bills to raise US$2,5 million to buy grain to feed the nation.
The bills were issued by the Grain Marketing Board (GMB), a traditionally incompetent and perennially loss-making government-owned company that is charged with the responsibility of maintaining the country's strategic grain reserves.
"GMB intends to raise funds through a grain bills issue to finance the purchase of grain," read the bill whose interest would be calculated on tender basis and coupon based.
"CBZ Bank Limited, as the financial advisor, hereby invites investors including, but not limited to, pension and provident funds, insurance companies, life mutuals, commercial banks and other interested institutions as well as individuals in Zimbabwe to subscribe for the grain bills amounting to US$2,5 million. Applications must be in multiples of US$1000."
GMB has failed to pay farmers for grain delivered to its depots throughout the country due to a liquidity crunch.
The parastatal's deputy general manager for marketing Zvidzai Makwenda was recently quoted admitting the GMB was broke and could not pay farmers.
He said the GMB was forced to borrow from the market although no loan has been secured.
The cash-strapped GMB has also failed to pay workers their salaries earlier in the year.
GMB recently announced a maize floor price of US$265 per tonne in a bid to lure farmers through competitive prices. Farmers now opt for private buyers since GMB cannot afford to pay them.
The government also owes farmers millions of United States dollars for grain they sold to GMB last year.
