The government has admitted that trade sanctions imposed by the United States on fertilizer producers Zimbabwe Fertilizer Company and Chemplex will hurt agriculture.
Finance minister Patrick Chinamasa told parliament that the sanctions announced by Washington in February along with the renewal of targeted measures against scores of officials aligned to president Robert Mugabe’s regime would worsen the country’s economic situation.
“You might have heard that America imposed sanctions on the Zimbabwe fertilizer companies ZFC and Chemplex. It means that these are programmes that are meant to derail our agricultural projects. What it means is there will be no production. The reason why inflation is in the negative is because people have no money and there is no production,” Chinamasa said.
Zimbabwe’s growth target for 2016 has been revised downwards from seven percent prescribed in the ZimAsset document to 1.5 percent projected by the World Bank.
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