News Update as @ 1530 hours, Friday 11 July 2014Feedback: bh24admin@zimpapers.co.zwEmail: bh24feedback@zimpapers.co.zw

By Lynn Murahwa

The National Economic Consultative Forum (NECF) has streamlined its task-forces in line with ZimAsset to improve its policy-making processes.

NECF's taskforces have been reduced from 14 to five. The NECF was created to ensure the attainment of socio-eco-nomic goals based on the concept of smart partnership between the public and private sectors and one of its key mandate is the provision of a broad participating framework in the formula-tion of national economic policy.

In an interview with BH24, NECF exec-utive secretary Norman Chakanetsa said the organisation has already revised its structures from 14 to five taskforces to be in line with the clus-ters in Zim Asset. “We used to have 14

taskforces then, we have reconfigured them to remain with five, four of which mirror the clusters in Zim Asset so as to make it easier and to avoid confusion,” he said.

According to Chakanetsa, the fifth taskforce encompasses the rest as it deals with the finances and funding across the board.

“So now we have the four in ZimAs-set, and the macro-economic task-force because that is the financing and monetary side which cuts across all the clusters so we felt that we needed that one,” he said.

Chakanetsa said the new structures are fully operational and during the course of next week their action plans will be presented to the steering committee.

“We have restructured and all the task-

forces are working, they did their terms of reference and action plans which we are actually going to present to the steering committee,” said Chakanetsa.

He added that a joint review commit-tee has been put in place to give a report of the implementation progres-sion to the Deputy Chief Secretary in

the Office of the President and Cabinet Justin Mupamhanga.

“There is a joint review committee which gets co-chairs to report to Dep-uty Chief Secretary in the Office of the President and Cabinet Justin Mupam-hanga on how far they have gone with the implementation,” he said.

The role of the co-chairs is working quite efficiently as they have been tasked to review challenges within the implementation processes and find solutions swiftly.

“Look at any problems they are facing in implementation issues and then they try and sort them out. It works quite well, we do the implementation and then they review so that any problems can be quickly dealt with,” he said. •

Policymaking to improve as NECF gets streamlined

By Rumbidzayi Zinyuke

Zimbabwe’s engineering and metals industry is not globally competitive and needs an investment of $14 billion to start contributing meaningfully to the economy, a study has shown.

The study commissioned by the Zim-babwe Economic Policy Analysis and Research Unit (ZEPARU) on the engi-neering and metals value chain showed that the sector has not performed well since 2008 and is in need of an over-haul.

The sector has the potential to contrib-

ute at least $800 million in fiscal rev-enue, create employment as well as make significant contributions to the GDP.

“The engineering and metals sector could become the backbone of the Zimbabwean economy if supported by export oriented policies and adequate financial mechanisms.

A combination of sound policies, injec-tion of funds for re-capitalisation and a sound business operating environment will be prerequisites for the revival of the engineering and metals sectors, else the country could become an end

market for all engineering and metal products from all over the world,” the report said.

According to the report, the sector had an overall trade deficit of about $3,3 billion for the period 2008 to 2012, translating into an average deficit of about $660 million per year. While the engineering sector has almost col-lapsed, the study showed that primary production is flourishing and the coun-try can leverage on it to access export markets.

The engineering and metals sector is severely distressed with a very low

average capacity utilisation of about 28 percent while the automotive sector’s capacity utilisation is below 5 percent.

The study said Zimbabwe should work on reviving exports for metal products although there are difficulties in access-ing the markets due to the high num-ber of countries supplying engineering products.

“Penetration of such markets was impossible without strategic collabora-tion with the huge markets in Asia and Europe. Zimbabwe could bargain on the strength of abundant primary prod-ucts and an educated workforce whilst the targeted end markets in the region, Asia, India, China and the EU leverage on their closeness to huge markets, advanced technologies and access to value chain finance,” the report read.

ZEPARU recommended in-depth fea-sibility studies for the revival of the automotive cluster as well as further study on the electrical and electronic equipment value chain considering its significant trade volumes over the past five years. ― The Herald •

2 NEWS

Metal industry can contribute more to fiscus, says ZEPARU

BH24

4 NEWS

By Lloyd Gumbo

Ziscosteel’s foreign creditors wanted to attach Air Zimbabwe planes to force Government to settle the steelmaker’s debt that has ballooned to more than $300 million, Parliamentarians heard on Thursday.

Government assumed the Ziscosteel now NewZim Steel debt when it sold 54 percent shares in the steelmak-ing company to an Indian firm, Essar Holdings in 2011.

The investor took over the foreign debt with the two parties agreeing to share the domestic debt, which stood at $72 million, but now at more than $200 million, based on 40 percent and 60 percent to Government and Essar respectively.

Some of the foreign firms owed by Zisco Steel include KFW of Germany and Sino Sure of China, but it could not be established which one between them was after Air Zimbabwe planes.

Industry and Commerce Deputy Min-ister Chiratidzo Mabuwa said foreign creditors wanted to attach the national

airliner’s property because Govern-ment had a share in New Zimsteel.

She was responding to Zanu-PF sen-ator for Mashonaland Central Cde Damian Mumvuri who wanted to know what Government was doing to ensure resumption of operations at NewZim Steel would see employees being paid.

“Foreign creditors wanted to attach Air Zimbabwe planes because Gov-ernment has shares in NewZim Steel but we are happy that that has been sorted because Essar has taken over the debt,” said Deputy Minister Mabuwa.

“It is the foreign debt that was now encroaching to the other Zimbabwe assets that we celebrate today that

has been solved and taken over by Essar.” She said the investor was com-mitted to seeing the deal succeed and was already engaging local creditors to settle the debts.

The local liabilities are related to employee benefits, pension fund and local authorities' obligations.

At the signing of the agreement, the local debt stood at $72 million but soared to more than $200 million because the Inclusive Government did not pay anything towards liquidating the debt.

Deputy Minister Mabuwa said the NewZim Steel would in the meantime import steel billets from India and South Africa to ensure resumption of operations.

NewZim Steel employees have gone for more than three years without full pay as bickering over operational modalities stalled operations.

Government and Essar have since agreed to immediately implement interim measures that include inject-ing fresh funds into NewZim Steel to kickstart revival and offer relief to workers. •

Zisco creditors wanted to attach AirZim

BH24

6 TECHNOLOGY

By Lynn Murahwa

Government has said broadband prices remain too high relative to income levels, with subscription charges said to average in excess of $100 per month on the African con-tinent.

Officially opening the African Tele-communications Union (ATU) Confer-ence of Plenipotentiaries yesterday, Vice President Joice Mujuru said the charges associated with broadband subscriptions in the continent are too high as they pass the average per capita income received by most countries.

“Research in most African countries reveals that broadband prices remain too high relative to income levels. I am informed that the average price of an entry level monthly broadband subscription is over $100, exceeding average per capita income obtained in most of our African countries,” she said.

She said the availability and accessi-bility of information and knowledge are key instruments in success as it has become the determining factor

in the lives of people. “It is becom-ing increasingly apparent that avail-ability of information and knowledge has become the key to competitive advantage. The certainty of commu-nication in people’s lives is such that it governs the way people interact, do business and engage their govern-ments,” she said.

According to VP Mujuru, the growth potential of the communications sector is an exciting one as many developing countries are currently experiencing it, with Zimbabwe hav-ing recorded a 400 percent growth in the telecoms sector over the past five years. “One of the exciting facts about the communications sector is its growth potential. Over the past five years, in Zimbabwe, the sector

has grown from less than two million mobile lines to over thirteen million, a growth of over 400 percent. No other sector in the country has recorded that kind of growth over the same period."

VP Mujuru said this potential should not be wasted but rather used to for-ward economies and standards of liv-ing in developing countries.

“Similar growth is experienced by most developing countries in our region with the telecommunication industry growth rate being about double that of the rest of the econ-omy. This growth in ICTs must be har-nessed so as to enhance socio-eco-nomic development in our countries,” she said.

She also said African countries should learn to deal with cyber threats against civilians, corporations and nations. “African countries need to boost their preparedness and response capaci-ties to address growing cyber threats. Our response requires enhanced coordination amongst ourselves to effectively implement cyber security strategies to protect consumers," she said. •

Govt laments high cost of connectivity

BH24

8 MOTORING

John Love Motors in Bulawayo yes-terday closed shop after operating in the city for about 40 years amid indi-cations the company has been facing financial difficulties.

When a Chronicle news crew visited the garage yesterday, some of the equipment was being dismantled.

It was not immediately clear where the equipment was being taken to.

An employee who declined to be named for fear of victimisation, said company owner Ashton Ndlovu addressed them in the morning and informed them of the closure.

"We were addressed in the morning and were told that the company was

not performing well and was closing down," he said. Ndlovu declined to comment. "Who told you that? Go to that person for details," he said curtly.

Dejected workers were seen filling in pension claim forms. They said Ndlovu, who is based in Harare, had been relocating some of the compa-ny's assets to the capital for some time.

"Some company assets like vehicles were moved to Harare last month.

"We thought the company was moving to Harare," said one of the workers. The number of affected employees could not be immedi-ately established. John Love Motors was once the sole Isuzu dealer in the

southern region servicing the Mid-lands,

Masvingo and the two Matabeleland provinces. The company reportedly lost the Isuzu franchise in 2008 and has been facing financial

challenges. A number of companies have closed in the city in recent years leaving thousands of people unem-ployed.

Affirmative Action Group founder member, Sam Ncube, said it was worrying that Bulawayo companies were continuing to close down and proposed an urgent business indaba to come up with ways of stopping the trend.

"People with problems should come up with solutions. We must take action. Business people must not just give up," said Ncube.

In a bid to save ailing industries, the Government has come up with the Distressed Industries and Margin-alised Areas Fund (Dimaf) which, however, is not enough to meet the financial needs of companies. ― Chronicle •

John Love Motors shuts down

9 AGRICULTURE

By Elita Chikwati

The District Development Fund requires $400 000 to offer free tillage services to A1 farmers and other vul-nerable people across the country.

DDF has since submitted its budget to the Treasury.

In an interview, Permanent Secretary for DDF and Related Infrastructural Development in the Office of the Pres-ident and Cabinet, James Jonga said DDF targets to till an aggregate of 35 000 hectares of land across all the farming sectors.

“Government through DDF had tradi-tionally been offering tillage services targeting the vulnerable groups in society like the poor, the aged, child-headed families and heroes of widows who do not have animal draught power for their own.

“We aim to till two hectares for A1 farmers under the disadvantaged area programme. We consider them disad-vantaged because most of them do not have tillage facilities,” he said. Jonga said the $400 000 will be used to repair the tillage machinery and immediately assist vulnerable groups before the

peak demand period for the 2014/15 summer season.

The programme is dependent on time-ous release of seed money from Treas-ury to repair and maintain the machin-ery. Out of the 530 ploughs DDF has, only 102 are working while 192 have minor breakdowns and 236 are major breakdowns. He said DDF was yet to

start offering its free tillage services to farmers but a limited fleet of tractors were available for cash paying farmers.

“We have not yet started offering free tillage services to A1 farmers as we await Treasury resources to finance operations. A limited fleet of tractors are available for cash paying farmers who are making early land prepara-tions for the impending 2014/15 sum-mer season.

“However at the launch of the A1 per-mits programme at Chifundi Farm in Chinhoyi, DDF deliberately subsidised two hectares per farmer among the 79 families to excite the demonstration of an ideal model,” he said. DDF has on several occasions been accused of providing tillage services to commercial farmers and high office bearers. Jonga

said the tillage service was available to all paying farmers irrespective of sta-tus.

“When resources have been availed to address the concerns of the vulnerable groups, the operational modality how-ever immediately shifts in favour of the disadvantaged as a priority target,” he said.

DDF offers services such as boom spraying, discing, land rolling, lime dis-tribution, planting, ploughing, ridging, fertiliser spreading and ripping. The authority charges between $5 and $88 per hectare depending with the oper-ation. Apart from tillage services, DDF constructs schools, clinics and houses in resettlement and communal areas. It also drills boreholes and constructs roads and bridges in these areas. •

DDF seeks $400 000 for tillage services

AdM-DI156506-

BH24

Stocks on the local bourse made a quick bounce-back from yesterday's retreat as the industrial index gained 0.15 points close the week on 186.78 points.

The gain was pushed by several coun-ters that traded in the positive.

News media and printing giant Zimpa-pers led the top risers, moving up 25 percent to close at 1c

Seedco was up 1.01 cents to close at 74.01 points whilst bankers NMB and Zimplow both traded 0.50 cents higher to close at 6 cents and 8.50 cents, respectively. Turnall added 0.35 cents to close the week at 3.50 cents and Colcom increased by 0.30 cents to trade at 22.30 cents. On the downside, African Sun and Mash holdings lost

0.10 cents each to close at 2.60 cents and 2.40 cents respectively. Dawn Properties eased 0.05 cents to trade at 0.95 cents.

Despite today’s gain the industrial index lost 0.66 points compared to last week, comparing on a week-on-week basis. Turnover was improved today at $1.2 million compared to yesterday's

$686 755, boosted by trades in Econet, Seedco and Padenga.

Market turnover was much lower than in the past two days at $686 755.

The mining index shed 1.80 points to close at 55.17 points this week as Bindura slipped 0.20 cents to close at 4.30 cents. Performance of the nickel producer's stock was depressed despite BNC posting an impressive set of financials for the year ended March 31, 2014, in which it posted record revenues of $65 million pushing it to profitability.

Falgold, Hwange and RioZim main-tained previous trading levels.

Week-on-week the mining index rose by 0.61 points. — BH24 Reporter •

11 ZSE REVIEW

Bourse gains marginally to close week on high

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BH24

Even amid all the numerous reports of company closures and extensive retrenchments there are still a number of positive outcomes.

One of these was Bindura Nickel Cor-poration's incredible comeback - after being mothballed for five years - to register an unprecedented turnaround in profitability of $36 million year-on-year, thus re-entering the "ranks of nickel producers with significant pro-duction and profit performances."

It is such an impressive turnaround in fortunes for the company, which shows that if a company puts in place the right strategies - even in the current

operating environment - it can become profitable. It has been noted on a few occasions that the Zimbabwean indus-try's main problem is not necessarily economic, but has to do with effective management (or rather, lack thereof) and poor corporate governance.

But for a significant portion of the time, the majority have chosen to lend their ears to the usual complaints of lack of funding and a 'difficult operating envi-ronment'.

Why is it that multi-national corpora-tions operating in the country tend to fare much better than the local firms when both are operating in a similar

environment? It probably points to deficiencies in strategy on someone's part.

The Minister of Industry and Com-merce Mike Bimha told a Parliamen-tary Portfolio Committee on Industry and Commerce last week that some of the key challenges facing industry was that of deficient and defective manage-ment.

"Other companies do need to be resus-citated anymore. Keep them dead because some of them are out of sync with modern trends....what is of inter-est is that they are a number that are under judicial management who were bound to close or had closed, but who are now back on line...it's more of management focusing on what is stra-tegic.

An example is Cairns, only a few weeks ago I went to officiate at Cairns. The company is contemplating exporting. It shows that it's possible for companies to be resuscitated," said the Minister.

A couple of weeks earlier, Confeder-ation of Zimbabwe Industries (CZI)

president Charles Msipa made similar comments at an Africa Leadership and Management Academy (ALMA) break-fast meeting, also citing the example of Cairns Foods which he said was now viable after being placed under judicial management.

Research shows show that there is a significant correlation between a high level of human skills and economic growth.

A study done by Heiner Rindermann and James Thompson (2011) of Chemnitz University of Technology and University College London points to “an increase of one intelligence quotient point in the intellectual class raises the average Gross Domestic Product by $468.”

That may be a bit too scientific for some of us, but if a company under a certain management crumbles and then is revived a year or so later under judi-cial management, that should tell us a story. Of course the operating envi-ronment can be better, but it is more important that we simply improve our management practices. •

13 BH24 COMMENT

Not all is lost...

BH24

De Beers completed its black empow-erment mandate under the South African Mining Charter for both its dia-mond mining and its diamond trading businesses.

Black empowerment partner Ponahalo Holdings, which has held a 26% stake in the mining operations of De Beers Consolidated Mines since 2006, now also holds a 26% stake in De Beers

sightholder sales division of South Africa, located in Kimberley, Northern Cape Province.

All of De Beers South Africa diamond production, roughly 5 million carats per

year, is sorted and valued in Kimberley, where the company holds 10 diamond sales a year supplying South Africa’s leading diamond cutting factories. ―Rapaport •

New U.S. pipelines and a revival in Libyan supply are increasing the likeli-hood that oil prices will slump through year-end after climbing in the first six months.

Wall Street analysts tracked by Bloomberg predict West Texas Inter-mediate oil will average $100 a barrel in the fourth quarter, down 5.1 percent from June 30, while Brent drops 4.8 percent to $107.

Violence in Iraq sent Brent to $115.71 in June, its highest level since Sep-tember, on concern supplies would be disrupted. Brent is poised to decline in part on increased output in Libya as key export terminals were reopened. In the U.S., traders are focused on sup-plies at Cushing, Oklahoma, the deliv-

ery point for the WTI futures contract.

Tallgrass Energy Partners LP plans to complete the conversion of the Pony Express pipeline to carry crude to Cushing from Wyoming. Enbridge Inc.’s Flanagan South will connect to the hub

from Illinois.

“Cushing is an island of scarcity in a sea of plenty,” Harry Tchilinguirian, the head of commodity markets strategy at BNP Paribas SA in London, said by phone on July 2.

“In the third quarter we’re looking at two new pipelines, the Flanagan and Pony Express, that will supply Cushing. There will then be a new equilibrium.” ― Bloomberg •

15 REGIONAL NEWS

De Beers completes empowerment mandate

Prepare for oil to keep falling on Libya to U.S. supply

BH24

17 DIARY OF EVENTS

The black arrow indicate level of load shedding across the country.

POWER GENERATION STATSGen Station

11 July 2014

Energy

(Megawatts)

Hwange 421 MW

Kariba 750 MW

Harare 45 MW

Munyati 29 MW

Bulawayo 0 MW

Imports 0 MW

Total 1245 MW

14 July - BNC Results Presentation update, Place: Chapman Golf Club, Time: 9.30 to 11.30 am.

16 July - Mobile Markets & Telecoms Forum Con-ference & Exhibition, Place: Holiday Inn (Harare), Time: 8:00am

23 -25 July - Mine Entra, Place: Zimbabwe Inter-national Exhibition Centre, Bulawayo

24 July - OK Zimbabwe Thirteenth Annual Gen-eral Meeting Place: OKMart Functions Room, First Floor, OKMart, 30 Chiremba Road, Hillside, Time: 15:00 hours.

1 August - Sixteenth Annual General Meeting of the members of Econet Wireless Zimbabwe Limited, Place: Econet Park, 2 Old Mutare Road, Msasa, Harare, Time; 10.00am

THE BH24 DIARY

BH24

19 ZSE

ZSEMOvERS CHANGE TODAY PRICE USC SHAKERS CHANGE TODAY PRICE USC

ZIMPAPERS 25.00% 1.00 DAWN -5.00% 0.95

TURNALL 11.11% 3.50 BNC -4.44% 4.30

ZPI 11.11% 1.00 MASH -4.00% 2.40

NMBZ 9.09% 6.00 AFRICANSUN -3.70% 2.60

ZIMPLOW 6.25% 8.50

SEEDCO 1.38% 74.01

COLCOM 1.36% 22.30

IndicesINDEx PREvIOUS TODAY MOvE CHANGE

INDUSTRIAL 186.63 186.78 +0.15 POINTS +0.08%

MINING 56.97 55.17 -1.80 POINTS -3.16%

Stocks Exchange

BH24

21 AFRICA STOCkS

Botswana 8,664.65 -11.96 -0.14% 12July

Cote dIvoire 246.37 +2.18 +0.89% 07Mar

Egypt 7,949.60 -75.68 -0.94% 06Mar

Ghana 2,352.45 +6.43 +0.27% 27June

Kenya 4,885.09 +51.07 +1.06% 30June

Malawi 12,662.47 +0.00 +0.00% 07Mar

Mauritius 2,074.51 -3.51 -0.17% 07Mar

Morocco 9,544.10 +21.01 +0.22% 07Mar

Nigeria 42,482.49 +714.93 +1.71% 30June

Rwanda 131.27 +0.00 +0.00% 24Oct

Tanzania 2,018.97 +25.40 +1.27% 07Mar

Tunisia 4,624.39 -39.32 -0.84% 07Mar

Uganda 1,503.90 +0.81 +0.05% 10Sep

Zambia 4,242.74 +14.95 +0.35% 10April

Zimbabwe 186.56 -0.52 -0.28% 30June

African stock round up Commodity Prices

Name Price

Crude Oil 1,300.91 -0.21%

Spot Gold USD/oz 1,292.63 -0.26%

Spot Silver USD/oz 19.38 -0.46%

Spot Platinum USD/oz 1,421.25 -0.33%

Spot Palladium USD/oz 798.50 -0.64%

LME Copper USD/t 6,770 -0.18%

LME Aluminium USD/t 1,780 -1.17%

LME Nickel USD/t 18,230 -1.73%

LME Lead USD/t 2,095 -1.41%

Quote of the day — "Be who you are and say what you feel, Because those who mind don't matterand those who matter don't mind." ― dr. suess

Globalshareholder.com

BH24

Gold retained sharp overnight gains to trade near a 16-week high on Friday and was poised to post its sixth weekly rise in a row, as troubles at a Portuguese bank hammered equities and stoked safe-haven demand for bullion.

FUNDAMENTALS

Spot gold inched up 0.1 percent to $1,336.36 an ounce by 0028 GMT, after

closing up 0.7 percent on Thursday, when it rose to a peak of $1,345 - the metal's highest since March 19.

Gold has gained over 1 percent this week. The sixth weekly gain is gold's longest winning streak since Feb-March when it had a similar run.

European and U.S. stock markets fell, and bond yields of Europe's southern

nations rose on Thursday as investor fears over financial troubles at the fam-ily-owned holding companies behind Banco Espirito Santo spilled across mar-kets and borders.

Meanwhile, India surprised bullion mar-kets by keeping the import duty on gold and silver unchanged at 10 percent in its fiscal budget, a move likely to limit over-seas purchases by the second-biggest

bullion consumer and further encourage smuggling. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.23 tonnes to 800.05 tonnes on Thursday.

Among other precious metals, platinum and palladium were both headed for their fourth straight weekly gain, while silver was on track for a sixth weekly gain tracking gold. ― Reuters •

23 INTERNATIONAL NEWS

Gold extends winning streak to 6th week on safe-haven demand

By Sifelani Tsiko

...continued from yesterday

They further suggest that with the pro-portion of Africans living in urban areas expected to increase from the current 38 percent to 48 percent by 2013, according to a 2013 AfricaRice report, rice consumption in Africa is expected to surge into the foreseeable future. Only two percent of rice is grown locally with the bulk being imported from Asian countries.

“We are dealing with a world authority on food security matters (Prof Long-pin),” said Ambassador Mutsvangwa. “If 70 percent of rice produced in the US was developed using Prof Long-pin’s hybrid varieties, then we can’t be an exception. Prof Longpin is a food security legend and embracing his rice development strategies can help to transform the country’s agricultural landscape.” In the 1970s, Prof Long-ping developed a high-yield hybrid rice and is said to have once remarked that: "I dreamed of rice plants as high as sorghum, with spikes as long as

broom bristles and grains the size of peanuts, and my assistants and I sit-ting in their shade."

He received the 2004 World Food Prize for his breakthrough achievement in developing the genetic materials and technologies essential for breeding high-yielding hybrid rice varieties. His pioneering research has helped trans-form China from food deficiency to food security within three decades. Revered

as the “Father of Hybrid Rice,” Yuan, at the age of 90, continues his inno-vative scientific work as director-gen-eral of the China National Hybrid Rice Research and Development Center.

He shared the 2004 World Food Prize with Dr Monty Jones, an African rice breeder who conducted his research at the West African Rice Development Center. According to media reports, Professor Longpin is widely acknowl-

edged as the first person to discover how to achieve heterosis in rice — a phenomenon in which the progeny of two distinctly different parents grow faster, yield more, and resist stress better than either parent.

Rice is a self-pollinating plant. Because of this trait, it was long assumed that developing a hybrid variety was not possible. Yuan’s work reversed this assumption. According to a 2013 report

24 ANALYSIS

Realising Zimbabwe’s rice promise

by the China National Grain and Oils Information Center, a state grain-policy think tank, projected rice output was projected to dip 0,7 percent to 202,8 million metric tons — the first time since 2003 that China would harvest less than the year before. China, the world's largest consumer of rice, is also the world's largest producer, account-ing for a quarter of global output.

"China can solve its food shortages and also help others," Prof Longpin was quoted saying proudly. "The total area of rice paddies globally is 2,2 billion mu (147 million hectares), and at least half of that is applicable to hybrid species. If the hybrid rice area were expanded by

100 million mu, 15 million more tons of rice could reach the world's tables, feeding 10 billion people – assuming everyone needs 150 kg every year."

Since 1996, the Chinese government has dispatched more than 700 agricul-tural experts and technicians to Mauri-tania, Ghana and five other countries under the framework of the South-South Cooperation – a program for developing countries to work together on solutions to their common develop-ment challenges. The Chinese govern-ment has trained more than 2000 new specialists in hybrid rice for over 50 countries while at the Beijing Summit of the China-Africa Cooperation Forum

in November 2006, President Hu Jintao committed to the construction of 10 agricultural demonstration centres and the dispatch of 100 senior agricultural experts for Africa.

The goal is to help reduce hunger and boost food security in Africa by devel-oping high-yielding varieties of crops

But there is a downside to all this, some analysts say. The gradually abandoning of growing the staple maize crop and other indigenous crops such as cow pea, millet, sorghum, yam, cassava, and other wild crop relatives such as amaranth, black nightshade and net-tles which once met the nutritional

needs of Africans for many ages, but have long been shunned in favour of staples such rice, cash crops like tobacco and others is leaving the coun-try and Africa as a whole vulnerable to serious food shortages.

Although varieties of the African rice are still grown in small pockets in Zim-babwe and elsewhere on the continent, the species were abandoned by most African farmers, who preferred to grow Asian rice varieties which were brought in by traders about 450 years ago. Agricultural experts fear this could lead to the extinction of Africa’s crop genetic resources. What is needed now, they suggest, was to reverse the gene flow, extracting desirable traits from the Asian rice and transferring them into the African rice.

Says Tewolde Egziabher, head of Ethio-pia's Environment Protection Authority and a global campaigner for protecting biodiversity: "It makes sense to start with work on the local (species), which are already adapted to local conditions.

"The introduction of foreign species was only justified if work on local species had been exhausted, without result.” •

25 ANALYSIS