El Nino to affect economy: experts

WITH the country now expected to import more grain to supplement domestic food reserves due to the El Nino-induced drought this season, economic experts say this will adversely affect the economy.

Farmers across the country are unlikely to harvest anything after their crop succumbed to moisture stress, prompting the Government to activate its food relief programme to ensure vulnerable families do not starve.

The El Niño weather phenomenon is being experienced across Southern Africa and is characterised by high temperatures and prolonged dry spells.

Responding to written questions, Lupane State University business analyst, Ms Shynet Chivasa, said the drought experience could cripple spending on key development projects as resources will be diverted towards food security.

“Droughts are usually associated with food and water shortages and require Government intervention. This means resources will be diverted towards food security,” she said.

“This might mean increased import bill, which has a negative effect on the current account, thus we may have current account deficit.”

Ms Chivasa said employment rate is also likely to be negatively affected especially in agro-based industries as their capacity will be constrained by limited inputs.

According to the International Research Institute for Climate and Society, the El Nino weather will affect the whole of the Southern Africa in what they have called the worst-ever drought.

Ms Chivasa says sectors where production is done through importing raw material, the cost of production would go up and chew profits, which also affects industrial growth.

“Household income will drop, especially those whose income is from agriculture given that Zimbabwe has mainly a rural populace and households depend on subsistence farming,” she said.

“Inflation is likely to go up and the main drivers will be food and related items.”

Economic analysts Mr George Nhepera said there is no doubt from an economic point of view that the El Nino is likely to result in low production and output from the agriculture sector, which ordinarily is the backbone of Zimbabwean economy and the anchor of poverty reduction strategy as a country. —chronicle.co.zw