Market update 15 August, 2016

1. Staple foods

i. Maize Grain The average selling price of maize grain across the CTP districts in the past fortnight remained at $0.40/kg ($7.00 per bucket). The price of maize has remained stable during the period of end of July up to mid – August 2016. The Grain Marketing Board (GMB) is the prominent supplier of maize grain across all the districts. Private or informal traders continue to sell the commodity. GMB is now buying grain from local farmers from wards with better harvests who have excess grain. At informal markets a bucket (17.5kg) of maize is being sold at $7 that translates to $0.40/kg. In Matebeleland North province, GMB has since closed the satellite points citing viability issues as the sales are very low. Figure 1 shows the trends on the prices of maize grain across the CTP provinces. ii. Maize Grain Price Trends at District level The selling price of maize grain remained the same in all the districts except in Gokwe North, , Nkayi and . Gokwe North and Masvingo experienced an increase in the selling price of maize grain from $0.34/kg to $0.36/kg and $0.35/kg to $0.36/kg respectively. In Gokwe North, the increase was attributed to the increase in commercial activities in the district especially the harvesting and selling of cotton by the cotton farmers in the district, thus resulting in an increase in the demand for commodities in the district. Nkayi and Insiza districts experienced a drop in the selling price $0.34/kg to $ 0.28/kg and $0.50/kg to $0.45/kg respectively. Matabeleland South had the highest average price for maize grain which was selling at $0.45/kg, in comparison to all the other provinces that had lower average prices.

In Lupane, Gwanda, Insiza and Matobo maize grain was selling at an average price of $0.45/kg, which is the highest price across the CTP districts. In Zaka, private traders indicated that they are getting their supplies in maize grain mainly from Bindura. GMB in Zaka is yet to introduce and accept Ecocash as a mode of payment by consumers when purchasing grain, a platform which they said will be available soon. However, in Gutu and Shurugwi, the GMB is accepting payments via Ecocash, making it easy on the part of the consumers to purchase the grain. Private traders are accepting payment through Ecocash as well in these two districts, i.e. Gutu and Shurugwi. iii. Maize meal The average selling price of maize meal remained unchanged at $0.58/kg from that of mid-July. The commodity is mainly supplied by retailers and informal traders. Maize meal is readily available across all the four provinces, though there is a variation in terms of the prices of the commodity, with Matebeleland North and Matebeleland South recording the highest average prices of $0.62/kg. Maize meal in Matebeleland South is available both at GMB and at retailers’ outlets. Major business centres in the provinces have stocks of mealie meal which is meeting the local demand. Retailers are the major players selling mealie meal at a price ranging from $0.50 to $0.62 per kg. Interviewed retailers in the provinces pointed out that they get mealie meal supply from wholesalers in areas that are a distance of an average of 40km from their own locality. Grain Marketing Board has stocks of mealie meal at a price of $23.22/50kg ($0.46/kg) and a 10kg is being sold at $5, therefore the average mealie meal price is 0.48/kg. iv. Maize Meal price trends at district level No price changes were noted from that of end-July across all the districts except where it rose to $0.62/kg from $0.58/kg. Overall, maize meal in all districts is readily available. The commodity is predominantly supplied by retailers’ outlets that source the commodity from outside their respective

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areas for resell. GMB is also selling maize meal at subsidised price of $0.48/kg. In Zaka, Silo continued to be the most favourable brand selling at $0.47/kg and continued to be readily available in 4 out of the 5 market sites surveyed. On the other hand in Mberengwa, the price of maize meal still remains stable at $0.55/kg despite the increase in demand and the enhanced purchasing power. In , maize meal is largely purchased from Masvingo Urban while in Shurugwi, the commodity is mainly purchased in , which is 40km away from Shurugwi. In Mberengwa, maize meal is readily available in local shops; the recent Cash Transfer has resulted in an increased uptake of maize meal by CTP beneficiaries in the recipient wards as reported by local traders in the district. In Gokwe South district, maize meal is selling at $0.60/kg of maize meal. This high price of the commodity is as a result of the drop in the number of selling points by GMB from 10 to 5 due to less activity at most points in the district, which is a 50% drop in the number of GMB selling points. v. Small Grains Sorghum: The commodity was available in the following districts; Shurugwi, Gokwe South, Gwanda, Beitbridge and Lupane. The average selling price of sorghum during the reporting period was $0.36/kg, which was a huge fall of the price from $0.61/kg which was the cost of the commodity in the end of July reporting period. This is encouraging as this will become affordable to the consumers, hence aiding to a balanced and nutritious diet as well. The commodity, even, in the districts where it is available, remains scarce, for instance in .

Millet- The product was only available in 7 out of the 15 CTP districts namely Zaka, Shurugwi, Mberengwa, Gokwe South, Gwanda, Beitbridge, Umguza and Lupane. The commodity is selling at an average price of $0.51/kg which is a reduction of $0.13 from $0.64/kg in end of July reporting period. For both sorghum and millet, the decrease in price can be attributed to low demand from the consumers. In Lupane, the commodity is mainly being sold by informal traders, while at GMB; the product is slowly running out. Rice remains available in all districts. The price of the product is $0.95/kg, which was the same cost as during the previous reporting period in end of July.

2. Non Staple Foods

Pulses: The average selling price of sugar beans was at $2.16/kg. The price went down by $0.01 from $2.17/kg which was the cost of the product during the end of July reporting period. The product is not available in Insiza district. This is so, because the traders who outsource the product are not so keen to buy it, as the demand for the product is also low. Unshelled groundnuts experienced a drop of $0.16/kg was witnessed in the selling price of unshelled groundnuts from $1.18/kg to $1.02/kg.

Other non-staple foods: The average selling price for cooking oil went up from $1.88/kg to $1.89/kg in the previous reporting period (end of July to mid - August) the commodity had been witnessing a fall in the price for a period of one month. In , most traders are limiting to one bottle per customer. This is a reflection of the situation in terms of availability of the commodity, as it is largely imported from neighbouring South Africa. The average selling price of kapenta decreased slightly by $0.03 from $0.91/kg to $0.88/kg during the reporting period of early to mid-August. Salt has been available and selling at an average of $0.51/kg since mid-July. The price of sugar went down from $1.07/kg to $1.05/kg in the month of August.

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3. Cash Liquidity Situation For this period of Mid-August, a total of 750 clients observed to be conducting cash out transactions at Mobile agents regardless of beneficiary status were interviewed in order to assess whether they had cashed money from agents. In each district, 5 wards were targeted, from which 5 major business centres (one per ward) were selected for the assessment to give a total of 75 business centres. Across the 75 business centres there are 312 (197 agents and 115 merchants) functional Ecocash agents a decrease from 328 (236 agents and 92 merchants) at end of July. Fifty (50%) percent of these were interviewed. For those who failed to get all the cash, a question was asked about the mitigation measures they were invoking.

i. Ecocash Agents The number of agents who were observed to be offering withdrawal limits increased to 52% from 35% at end-July. This was an increase by 17% as compared to the previous reporting period. The increase to cash out limits was attributed to a shortage of cash in circulation within the districts; hence, the agents had to put limits to the cash that they would give out to their clients. 48% of the agents were not offering withdrawal/cash out limits. The agents in all the provinces are still in a position to give out cash to their clients. In the period of mid – August, the highest amount being given out by an ecocash agent is $406.

ii. Clients The number of clients who managed to cash out all the money they wanted was 77%, a decrease from 82% by end-July. The reduction in the number of clients able to cash out all the money they wanted dropped mainly due to the demand for cash from the Ecocash agents. The beneficiaries also reported on the options that they had in cashing out, or in making use of the money that they had in their phones. Thirty five percent (35%) of the interviewed mentioned that they prefer to wait until the nearest agent has cash. 23% of the beneficiaries reported that they use the e – purchasing platform, hence, do not need cash at hand to purchase their needs. 20% of the beneficiaries in the districts reported that they stagger e – purchases meaning that they make their purchases at certain intervals. 18% reported that they stagger cash out, meaning that they take out their cash from their Ecocash accounts in batches. 11% reported that they travel to major towns to cash out their money. 10 % of the beneficiaries reported that they keep their money for savings.

The cash crisis in the country may not end any time soon, as there is a continued need for cash by the citizens. It is quite fortunate that in districts such as Gutu, Zaka and Gokwe South there are retailers and traders who are accepting payments to be made via Ecocash, making it much easier for the programme beneficiaries to be able to purchase their commodities. The project is encouraging the project beneficiaries to make use of e – wallet services as a way of reducing cash transactions.

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Figure 1: Price Trends for staple cereals

CTP Consortium: Prices of Staple Cereals

1.05 1.00 0.95

0.90 0.85 0.80 0.75 0.70 0.65 0.60 0.55

Prices $ in perunit 0.50 0.45 0.40 0.35 0.30 Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar April April May May June June July July Aug 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Maize grain 0.41 0.41 0.41 0.43 0.46 0.49 0.51 0.53 0.51 0.50 0.49 0.47 0.46 0.44 0.41 0.41 0.40 0.39 0.38 0.40 0.40

Maize meal 0.54 0.55 0.55 0.56 0.58 0.58 0.58 0.58 0.63 0.63 0.59 0.59 0.59 0.58 0.59 0.58 0.57 0.57 0.57 0.58 0.58 Sorghum 0.53 0.53 0.54 0.55 0.57 0.57 0.54 0.59 0.61 0.62 0.62 0.62 0.64 0.50 0.35 0.56 0.73 0.66 0.66 0.61 0.36 Millet 0.57 0.46 0.47 0.48 0.54 0.55 0.40 0.52 0.53 0.53 0.55 0.55 0.54 0.47 0.45 0.67 0.68 0.68 0.68 0.64 0.51

Rice 1.01 1.01 1.00 1.00 1.01 0.99 1.01 0.98 1.00 1.01 0.99 0.98 0.95 0.96 0.96 0.93 0.94 0.95 0.95 0.95 0.95

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Figure 2: Maize grain price trends for selected districts

Maize Grain Price Trends per Kg for Selected Districts

0.59 0.55 0.51 0.47 0.43 0.39

0.35 Price(US$) 0.31 0.27

0.23 0.19 0.15 Mid Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Aug Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar April April May May June June July July ust 15 15 15 15 15 15 16 16 16 16 16 16 16 16 16 16 16 16 16 16 16 Lupane 0.45 0.45 0.45 0.45 0.57 0.60 0.60 0.60 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 0.45 Nkayi 0.40 0.40 0.40 0.40 0.40 0.45 0.45 0.47 0.47 0.48 0.47 0.47 0.47 0.47 0.28 0.28 0.28 0.28 0.28 0.34 0.28 Beitbridge 0.45 0.45 0.45 0.45 0.30 0.30 0.30 0.30 0.30 0.43 0.43 Insiza 0.48 0.48 0.48 0.48 0.48 0.50 0.50 0.50 0.48 0.48 0.48 0.48 0.50 0.50 0.50 0.48 0.50 0.50 0.50 0.50 0.45 Masvingo Rural 0.39 0.39 0.40 0.41 0.42 0.45 0.44 0.44 0.56 0.56 0.56 0.56 0.44 0.45 0.45 0.44 0.44 0.44 0.35 0.35 0.36 Zaka 0.45 0.45 0.45 0.47 0.45 0.46 0.45 0.45 0.46 0.46 0.46 0.46 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 0.40 Gokwe North 0.34 0.34 0.34 0.34 0.40 0.46 0.46 0.51 0.45 0.51 0.51 0.44 0.40 0.31 0.31 0.31 0.32 0.32 0.32 0.34 0.36 Gokwe South 0.28 0.28 0.28 0.30 0.33 0.43 0.43 0.50 0.50 0.50 0.51 0.51 0.50 0.35 0.29 0.29 0.29 0.23 0.29 0.29 0.29

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Figure 3: Maize Meal price Trends per Kg for Selected Districts

Mealie Meal Price Trends per Kg for selected Districts 0.98 0.94 0.90 0.86 0.82

0.78

0.74 0.70 0.66 0.62 0.58 Price(US$) 0.54 0.50 0.46 0.42 0.38 0.34 0.30 Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid Jun Jun Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apri Apri Ma Ma July July Aug e e 15 15 15 15 15 15 16 16 16 16 16 16 l 16 l 16 y 16 y 16 16 16 16 16 16 Lupane 0.75 0.75 0.75 0.75 0.80 0.75 0.75 0.75 0.75 0.70 0.50 0.50 0.50 0.50 0.65 0.60 0.60 0.60 0.65 0.65 0.65 Umguza 0.49 0.49 0.49 0.49 0.49 0.56 0.56 0.56 0.56 0.55 0.55 0.55 0.55 0.55 0.50 0.50 0.50 0.55 0.55 0.55 0.55 Beitbridge 0.35 0.40 0.40 0.46 0.50 0.54 0.52 0.50 0.50 0.53 0.59 0.59 0.59 0.54 0.63 0.66 0.59 0.60 0.61 0.58 0.62 Gwanda 0.68 0.68 0.68 0.68 0.68 0.68 0.70 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0.75 Gutu 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.95 0.95 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55

Masvingo 0.55 0.55 0.55 0.55 0.55 0.50 0.60 0.60 0.70 0.70 0.70 0.70 0.70 0.70 0.70 0.60 0.60 0.60 0.60 0.58 0.58 Gokwe North 0.55 0.55 0.55 0.55 0.55 0.53 0.53 0.53 0.56 0.53 0.53 0.54 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55

Mberengwa 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.55 0.53 0.55 0.55 0.55 0.55 0.55 0.55 0.55

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Figure 4: Price Trends for Non-Cereal Foods

Consortium: Prices of Non Cereal Foods

4.00 3.50 3.00 2.50 2.00

1.50 1.00

Prices $ in perunit 0.50 0.00 Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid End Mid Jun Jun Oct Oct Nov Nov Dec Dec Jan Jan Feb Feb Mar Mar Apri Apri Ma Ma July July Aug e e 15 15 15 15 15 15 16 16 16 16 16 16 l 16 l 16 y 16 y 16 16 16 16 16 16 Sugar beans 2.07 2.07 2.07 2.09 2.09 2.17 2.15 2.16 2.22 2.21 2.13 2.13 1.97 2.03 2.00 1.97 2.18 2.20 2.18 2.17 2.16 Cowpeas 1.31 1.31 1.22 1.35 1.64 1.64 1.61 1.40 1.40 1.25 1.25 1.25 1.34 1.25 1.25 1.30 1.45 1.45 1.45 1.25 1.27

Ground nuts (unshelled) 0.92 0.92 0.97 0.97 0.97 0.97 0.96 0.94 1.23 1.24 1.29 1.29 1.18 1.02 0.98 0.94 1.14 1.30 1.50 1.18 1.02 Ground nuts (Shelled) 2.49 2.49 2.52 2.55 2.75 2.79 2.63 2.36 2.87 2.87 2.86 2.86 2.73 2.41 2.82 2.32 2.80 2.86 3.53 2.11 1.44 Cooking oil 1.72 1.73 1.72 1.73 1.75 1.74 1.84 1.79 1.79 2.45 1.84 1.82 1.83 1.84 1.82 1.83 1.91 1.91 1.91 1.88 1.89 Salt 0.49 0.49 0.49 0.49 0.49 0.49 0.47 0.47 0.54 0.54 0.57 0.57 0.58 0.57 0.53 0.52 0.54 0.56 0.56 0.51 0.51 Sugar 1.03 1.03 1.04 1.03 1.04 1.07 1.07 1.06 1.05 1.08 1.06 1.06 1.05 1.03 1.06 1.04 1.06 1.07 1.08 1.07 1.05 Kapenta (100g) 0.91 0.91 0.91 0.92 0.92 0.94 0.95 0.95 0.96 0.95 0.95 0.95 0.94 0.95 0.95 0.93 0.90 0.92 0.92 0.91 0.88

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Figure 5: Cashing out Practices by Agents and Clients

Cashing Out Practices by Agents, Merchants and Clients

90

80

70

60

50

%ageof Responses 40

30

20

10

0 Mid June End June Mid July End July Mid Aug 16 16 16 16 16 %age of Agents offering Cash Limits 30 25 27 35 52 %age of Agents giving clients 100% cash needs 70 75 73 65 48 %age of Clients cashing out all money they need 70 71 72 82 77

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