‘Iwe’ Clinton Nzala: stop advising HH to bring ‘nzala’ (hunger ) through consumer subsidies
By Austin Mbozi
In Tonga, ‘nzala’ means hunger.
Like his name, Clinton Nzala’s article can bring ‘nzala’ (hunger) in Zambia. His article is, ‘Hunger is HH’s biggest political opponent’( The Mast, 19 February 2024).
Imagine, he suggests that HH must subsidise BOTH mealie consumption and maize production! On consumption he says, ‘ I fully understand that given the ongoing dealings with the IMF, re-introducing mealie meal subsidies will be a very difficult… . [but HH must stop listening to advice from] some bookworms in the Ivory Towers in Washington DC.’ On production he says, ‘unfortunately the only viable method … is subsidising the cost of mealie meal production.’
My criticism of Nzala’s article does not mean I oppose his right to express himself. I therefore invite him to attack my views also. Here are my five arguments against Nzala. First, no one subsidises both the production and the consumption of the same product. Our state money already subsidises maize meal production through the Farmer Input Support Program (FISP) where farmers pay virtually nothing, except some administrative costs, and they don’t repay. Yet, ‘farmers’ still fail. Researchers Allan Magasu (World Vision ) and Oliver Magasu (Kwame Nkrumah University) published a paper entitled ‘Farmer Input Support Program (FISP) in Zambia and the State of Food Security at House Level in Chiawa District. They established that FISP, since its establishment has not eliminated hunger. What I disagree with them is their recommendation for more FISP funding. Let us even stop the FISP nonsense. This research relied on what the so-called farmers said. These ‘farmers’ never told the researchers that some of them sell FISP inputs, that they produce lower yields per hectare than the capacity of the received input or that they drink beer after selling produce and never save anything to qualify into being self-sustaining farmers.
And yet Nzala wants a second level subsidy for consumers of the already subsidised mealie meal. Imagine a FISP subsided farmer selling his maize to FRA at K280 per 50 kg, which means K140 per 25 kg. The miller buys this bag from FRA at, say, K150 per 25 kg. To make a profit, the miller sells at, say, K200. Then the retailer buys from the miller and to make a profit he sells at around K250. Now when unproductive consumers complain, Nzala wants the government again to subsidise the mealie meal so that it costs K150?
Hate me if you like, after all I hate being liked, especially by my fellow men. If you are so productively incapable that you can’t afford this mealie meal which is already subsidised at production level, go and beg for survival handouts from the Ministry of Social Welfare.
Second, the UPND government is already subsidising production by so far continuing FISP. So Nzala’s ‘advice’ adds no value.
Third, UPND has introduced 12 per cent interest loans under the Sustainable Agriculture Financing Facility (SAFF). This approach is superior to subsidies because government does not lose money. It simply lends it and gets it back. It allows farmers to get to know the real cost of producing maize, compelling them to work responsibly and knowing they have to repay or lose their property. If you do not have any piece of land, not even in your village ancestral land to use as surety, then you are not worthy government support as a farmer. Go get state support for other businesses, not farming.
Fourth, UPND created a lucrative local maize market for farmers by compelling FRA to buy a 50 kg bag at K280 instead of the PF thief-thug era of K180. This encouraged more farmers to grow maize. Of course, this is what partly has pushed prices up. And I disagree with those who think prices will go down when more farmers grow the maize. As long as FRA buys at K280, prices will not go below the current prices that you find with ZNS mealie meal. So get used to the current prices.
Fifth, UPND has found lucrative international markets. The Congolese government paid in advance USD 14.5 million in 2023. Once FRA buys at K280, a profit to farmers to grow more, FRA can only store as a reserve some 2.7 million metric tonnes needed within Zambia annually. The rest, government can export at over K560 in mealie meal form (value addition. These government foreign exchange earnings can be pumped into further maize production. This is real more money into the farmer’s pockets.
Of course, now that UPND gets involved in exporting maize, it will need to revise FRA’s mandate from being a mere food reservoir to a marketing company. FRA was revised before. The colonial Northern Rhodesia government created the institution we now call FRA around the World War II era to control agriculture, paying more to white than black farmers under the Federal Ministry of European Agriculture. After 1964, the black government of Kenneth Kaunda turned it into the National Agricultural Marketing Board (NAMBOARD). Production increased so much that even Northern Province produced 2.5 million bags in 1985. But because President Chiluba’s MMD blindly liberalised agriculture in the 1990s, it reduced NAMBOAD to mere FRA. UPND can revise it but improve its efficiency from the way it operated under Kaunda.
Fifth, UPND is funding Zambia National Service (ZNS) into growing maize and milling it. Brilliant idea! Private company mealie meal costs more (K320) because its millers pay salaries. ZNS mealie meal costs less (K230) because ZNS pays no more salary costs, since its staff were all along on salaried but producing less.
Sixth, Under UPND the new United Capital Fertiliser Company Limited will locally produce 300,000 metric tonnes of cheaper fertiliser!
All these UPND measures are economically realistic, not the ‘nzala’-bringing subsidies desired by Clinton Nzala.
Disclaimer: Being a non-office holding UPND member, some of this author’s views above do not necessarily reflect the party’s official policy.
Email: austin.mbozi2027@gmail.com. Phone: +260-978741920.
-The Mast