More people resort to barter trade for basic commodities

By Henry Makiwa
16 October 2007

A report by seven key organisations on Zimbabwe’s agricultural situation says most people have resorted to barter trading to acquire basic commodities, as shops continue to be empty.

Details in a paper entitled: Agricultural Coordination Working Group – September 2007, portray a dire picture of how millions of people in the countryside are trading their staple maize for casual labour and other basic needs such as laundry soap and sugar.

It also highlights the plummeting levels of wheat production on farms, underscoring the warped land reform policies of the Robert Mugabe regime that has seen 70% of commercial agriculture being destroyed in the past seven years.

Among the organisations involved in the compilation of the report are the Food and Agriculture Organisation, Environment Africa, Oxfam, the Ministry of Health and the Department of Agricultural Research and Extension (Arex).

In the report, the state-controlled Arex admits: “The prevalence of barter trade is high in all (rural) districts with a wide range of commodities being exchanged for grain (for example sugar, laundry soap, green vegetables and casual labour).

Arex adds: “An analysis of the barter trade activities indicate that the terms of trade are favouring basic commodities over grain. The observed worsening terms for trade of maize grain is the result of the acute shortages of basic commodities and high prices on the parallel market.”

The practice of barter trade has also extended into cities and towns according to journalist, Shakeman Mugari.

Mugari said: “Everyone is feeling the pinch and we are witnessing this even here in Harare. People are indeed pawning their assets for basic commodities and formal business is collapsing.

“Its all a direct result of the government’s price blitz policy and this has had an obvious domino effect on the poor showing of the economy,” Mugari said.