A digital copy of the Business News 24 (10 July edition). Zimbabwe's premier business news free sheet published by the Zimpapers Newspapers Group (1980) Limited and available every week day from 1530hrs to give a summary of the day's business news.

1. News Update as @ 1530 hours,Thursday 10 July 2014
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By Rumbidzayi Zinyuke
The National Social Security Authority
says it will provide the necessary funds
to the informal sector as part of efforts
to incorporate informal businesses into
the formal sector.
Speaking on his return to Zimbabwe
from the recently held International
Labour Conference in Geneva, NSSA
general manager James Matiza said his
organisation would make funds availa-
ble to the Small Enterprises Develop-
ment Corporation (Sedco) for lending
to informal businesses, as a way of
transitioning them to the formal econ-
omy.
“The lack of protection of workers
within the informal sector was a mat-
ter of common concern. For us, as a
social security authority, our primary
concern is the fact that workers within
the informal sector are not covered by
the Workers’ Compensation Insurance
Fund and are not contributing to the
national pension scheme.
“Those in the informal sector do not
contribute to the scheme and therefore
cannot benefit from it.
Thus we, as NSSA, have an interest
in supporting the formalisation of the
informal economy, which is why we are
ready to provide funding for informal
sector businesses as a way of bringing
them into the formal sector,” he said.
He said the ministers of Public Service,
Labour and Social Welfare and of Small
and Medium Enterprises and Cooper-
ative Development were expected to
meet soon to discuss cooperation in
this exercise. He pointed out that work-
ers in the informal sector did not enjoy
many other workers’ rights espoused
by the International Labour Organisa-
tion.
The conference in Geneva came up
with proposals for formalising the infor-
malsectorsofallcountriesintheworld.
Matiza represented Zimbabwe, which
was appointed chair of the government
members of the Africa Group in the
Committee. The committee adopted
a number of conclusions intended to
form the basis for a draft recommen-
dation on transitions from the informal
to the formal economy that will be
considered by the International Labour
Conference at its next session, due to
be held next year.
Among the conclusions, was one
that stated that the denial of rights at
work, the absence of sufficient quality
employment opportunities, inadequate
social protection and the absence of
recognised social dialogue were most
pronounced in the informal economy.
One of the objectives of formalising
the informal economy was to promote
decent work for all, it said. •
NSSA to provide funds for formalising informal economy

2. BH24

3. By Tawanda Musarurwa
• Nickel producer to expedite
resumption of smelting operations
this year
Bindura Nickel Corporation (BNC)'s
Trojan mine has bounced back in style,
posting record revenues of $65 million
for the year ended March 31, 2014.
Trojan Mine - which had been under
care and maintenance since Novem-
ber 2008 - put in turnover comprising
of 7 129 tonnes of nickel at a value
of $65 million and included the sale
of by-products, namely copper and
cobalt, said the company.
Theupbeatperformancesawthenickel
producer registering an unprecedented
turnaround in its profitability of $36
million year-on-year.
BNC's operating profit for the period
under review stood at $17,3 million
compared to the prior year loss of
$13,1 million. The company said the
strong cash flows will underpin financ-
ing of future developments.
"Bindura Nickel Corporation re-en-
tered the ranks of nickel producers
with significant production and profit
performances in the financial year to
31 March 2014 – performances that
hold promise for the future and that
underpin the developments in train for
the current 2015 financial year. "The
company is now generating strongly
positive cash flows and is set to do so
even at nickel prices lower than those
currently prevailing," said BNC.
The miner said it had reaped rewards
from its new plan as grade increased to
1,38 percent. In the year’s third quar-
ter Trojan’s underground operations
were directed towards advancing the
scheduled mining of the massive parts
oftheorebodywherenickelgradesare
consistent and high and where mining
costs can be well contained.
BNC made its first delivery of nickel
in concentrate in terms of an off-take
agreement with Glencore Xstrata in
April 2013, and the miner has said
the positive operational and financial
performance has necessitated the
resumption of its smelter in the current
year.
Management expects that resumption
of smelter operations to produce nickel
leach alloy will further drive revenues
and operating profit.
"The company’s greatly improved
financial performance and determina-
tion to further improve profitability has
led to the decision to resume smelting
operationsatthecompany’sfacilities....
The move towards production and
sales of nickel leach alloy rather than of
nickel in concentrates has as its goals
an improvement in the company’s rev-
enue and a reduction in the costs of
transporting the final product," said the
nickel producer.
BNC believes that the cost of operating
the smelter will be "more than offset"
by the higher revenue per tonne of
nickel in alloy than in concentrates.
"The capital cost of restoring smelter
operations is planned to be financed
50:50 from internal resources and
debt. There is no intention to call on
shareholders for equity funding," said
BNC.
Despite the profits the BNC board has
decided not to declare a dividend on
the need to conserve capital to fund
future development projects. •
3 MINING
BNC bounces back with record revenues

4. BH24

5. 5 NEWS
By Lynn Murahwa
• Shortlisted bidders must prove
funding saysMotecHoldingsboss
The fate of Motec Holdings subsidi-
ary, Deven Engineering, hangs in the
balance as the group awaits confir-
mation of funds from the shortlisted
bidders.
The Industrial Development Corpora-
tion (IDC) announced earlier this year
that it had put the coach building,
transport solutions and general engi-
neering company - Deven Engineer-
ing - up for sale. The sale was part
of Government’s plans to restructure
the IDC allowing greater focus on the
revival of the country’s struggling
industry.
In an interview, Motec Holdings (Pri-
vate) Limited group CEO Benjamin
Khumalo said that the sale and direc-
tion of the group is dependent on the
bidders' ability to provide undisput-
able proof that they have the funds
available. "It really depends on if they
can give us irrevocable proof of funds
or not. If they can’t then it means
we are back to the drawing table, so
it’s possible for us to re-turn and it’s
also possible that among the ones we
have short listed somebody will be
able to give us proof.” He added that
currently the company is awaiting
proof of funds from the bidders before
proceeding with the sale.
“We are at that stage where we are
now calling on the short listed bidders
who will give us irrevocable proof of
their ability to pay. Once we receive
that then we then move on,” he said.
Kumalo said although there are bid-
ders who have been shortlisted the
sale of the company cannot yet be
confirmed. “At this point and time I
cannot say we are definitely going to
sell to the short listed bidders or not,”
he said. The names of the selected
bidders could not be given, however,
Khumalo said a total of three bidders
have been identified.
“It is not proper to name names at
this point and time because these
things are confidential but we have
short listed about three. We had sev-
eral people who had put in bids but
we have narrowed the list to three,”
said Khumalo. The Motec Holdings
subsidiary is up for sale as the com-
pany seeks to mobilise capital to ena-
ble its parent company, the IDC, to
effectively execute its re-defined role
of financial mediation. •
3 bidders shortlisted for Devon Engineering

6. BH24

7. 7 TOURISM
By Funny Hudzerema
The Zimbabwean Government is set
to sign a memorandum of under-
standing (MoU) with the United States
to promote tourism between the two
countries, an official has said.
Addressing journalists at his office
Minister of Tourism and Hospital-
ity Industry Walter Mzembi said the
MoU will twin the Victoria Falls and the
Niagra falls and help boost tourism
inflows from the US.
"Statics shows that the US has the
uppermost number of tourists who
visit Zimbabwe, but the number is
declining in 2012 the country received
50 060 thousand "Last year, Zimba-
bwe received 45 496 tourists from
the US which shows that there is a
decrease in arrivals,” he said.
Mzembi added that the partnership
between the two countries will pro-
mote the exchange of culture, mar-
keting of products, training of person-
nel and cooperation between the two
nations to promote trade and tourism.
“The main reason for this discussion
is to promote tourism between two
countries which is now having a gap
due to the relationship between the
two nations.
“USA and Canada through the Niagra
falls they receive more than 25 to 35
thousand per year as compared to one
million received in Victoria Falls per
year so through partnership the num-
ber of arrivals is going to increase”,
he said. Minister Muzembi added that
since China and India were amongst
the top arrivals to Niagra Falls, then
the twinning arrangement would also
benefit Zimabbwe in terms of tapping
into that market.
US ambassador to Zimbabwe Bruce
Walton said Zimbabwe will bene-
fit from the extensive number of US
tourists.
“Americans have invested in the tour-
ism sector in Zimbabwe so the part-
nership can increase business transac-
tions between the two nations through
tourism,” said ambassador Wharton.
Ambassador Wharton also pledged
to market Zimbabwe to different
stakeholders in US so as to increase
the number of arrivals in the country
and create economic development
through tourism. •
Zim to partner US to increase tourist arrivals
Minister Mzembi

8. BH24

9. 9 TOURISM
Cape Town ― South Africa's new
immigration regulations are already
having grave effects on the flow of
tourists into the country, particularly
from one of its main growth markets
-China, according to figures made
available on Thursday.
Michael Tollman, the CEO of tourism
consulting company Cullinan Holdings,
said a 70 percent drop in travel from
China to South Africa is forecast due to
the new immigration regulation's hasty
implementation.
Furthermore, it is alleged that travel
agencies in China have resorted to
diverting clients eager to travel to
South Africa to visit other African
nations instead.
Members at the Southern African Tour-
ism Services Association (SATSA) have
already reported a number of can-
cellations, further proving that South
Africa's tourism sector is at stake due
to the new immigration regulations'
implementation. Since the Department
of Home Affairs (DHA) implemented
the new regulations in late May, there
has been an avalanche of criticism and
confusion.
The regulations require visa applicants
to collect their visas in person. It also
stipulatesthatallSouthAfricanchildren
must travel with an unabridged birth
certificate showing the names of the
parents, and where one parent is not
travelling with the child, an affidavit is
also required.
Opponents say the regulation does
not only affect South African travellers,
but also impacts tourist flows to the
country. James Vos, DA Shadow Dep-
uty Minister of Tourism, said that "this
would mean that the new visa regula-
tions are killing South Africa's tourism
industry and cutting the country off
from access to one of our key growth
markets."
"Wewillcontinuetosubmittheseques-
tions on a regular basis to continually
monitor tourism figures," Vos said in a
statement.
Home Affairs Minister Malusi Gigaba
last week defended the much-criticised
new immigration regulations, saying
the act was meant to boost security
in the country. "We would not want a
situation where criminals do as they
like, " the minister said. He said his
department has to ensure that it regu-
lates international migration in national
interest and in the interest of national
security.
One purpose of the new regulation was
to ensure that everyone who enters
or leaves the country has relevant
paperwork, and that they are treated
humanely, Gigaba said.
But Vos said the minister introduced
the new regulations prematurely and
that these new rules have severely
hindered tourism and investment into
South Africa.
"The DA will continue to push for a
review of these regulations in order to
ensure we continue to be a top tour-
ist destination globally, so that we can
grow our economy and create jobs,"
Vos said. ― Xinhua •
S. Africa's new immigration regulations stem inflow of tourists

10. AdM-DI156506-
BH24

11. The equities market was 1,15 percent
weaker bucking gains from the past
two days, weighed down by loses from
heavyweights Delta and African Sun.
The industrial index lost 2.17 points to
close at 186.63 points.
Loseswererecordedinbeveragesgiant
Delta which went down 5 cents to 125
cents while Masimba retreated 0.30
cents to close at 1.70 cents. African
Sun, Powerspeed and Zimplow slipped
0.10 cents each to close at 2.70 cents,
1.6 cents and 8 cents respectively.
On the upside, Seedco which added
0.99 cents to close at 73 cents and
Econet which moved up 0.80 cents to
settle at 74 cents. NicozDiamond, Old
Mutual and ZHL each rose 0.10 cents
to close at 1.30 cents, 256.10 cents
and 0.90 cents respectively.
Market turnover was much lower than
in the past two days at $686 755.
The mining index increased by 1.64
points to close at 56.97 points after
Bindura gained 0.20 cents to settle
at 4.50 cents. Hwange and Riopzim
maintained previous trading levels
whilst Falgold was down 0.20 cents at
2 cents. — BH24 Reporter •
11 ZSE REVIEW
Equities back in the red

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BH24

13. Zimbabwe's latest broad economic
policy - the Zimbabwe Agenda for Sus-
tainable Socio-Economic Transforma-
tion (ZimAsset) - has been described
as positive by a number of agencies,
not least the World Bank, the African
Development Bank, and International
Monetary Fund.
This is because it has the potential to
revive the country's economic fortunes
if implemented to the letter.
An analysis of the ZimAsset document
shows that its strength lies in its rec-
ognition of the importance of value
chains.
The policy outlines key economic clus-
ter areas that need to be improved,
and outlines the strategies that will be
followed and the results envisaged.
Critically, the policy looks at the com-
plete value chain of a particular cluster,
focusing on where and how along that
particular value chain can activities be
enhanced for the better of the sector.
This value chain approach, which was
popularised in the 1980s by Michael
Porter, is the key strength of ZimAsset.
Because the ZimAsset policy is based
on this value chain analysis, it gives
an indication of where intervention is
required and how it can be best imple-
mented.
According to a 2009 United Nations
Industrial Development Organisation
(UNIDO) working paper entitled 'Value
chaindiagnosticsforindustrialdevelop-
ment -
Building blocks for a holistic and rapid
analytical tool' benefits that can be
derived from conducting a value chain
analysis include: improvement in
the quality of products and services;
improvement in production and pro-
cessing efficiencies; creation of new
processing and transformation activi-
ties; better linkages among value chain
actors; and improved marketing and
distribution of products and services.
Additionally, the implementing agent
can also benefit from effective flow of
technologies, information, and skills
within the value chain; reduced entry
barriers; the establishment of regula-
tory frameworks that create an ena-
bling environment for value chains
to function; improved compliance
with existing standards; promotion
of fair practices between actors; and
improvement of vertical integration
of the value chain through improved
contractual arrangements and chain
governance.
A breakdown of ZimAsset shows then
that the Government is fully aware of
the areas across the country's numer-
ous sectors that need to be addressed
and how this can and will be resolved.
Take the case of Zimbabwe's agri-
culture/agro-industry for example.
Zimbabwe is historically an agricul-
ture-based economy and a decline
in agriculture performance in past
decades has also seen a decline in
performance in the manufacturing
sector (which is mostly dominated by
agro-processing industries) .
Agro-processing industries refer to
those activities that transform agricul-
tural commodities into different forms
that add value to the product, and may
be primary or secondary.
ZimAsset outlines broad strategies
in respect of enhancing production
capacity, financing facilities, market
enhancement and policy re-alignments
in terms of imports and exports and
numerous other factors that need to be
implemented.
As Government has since acknowl-
edged, the key constrain in the full
implementation of ZimAsset is the lack
of funding for the programmes.
But there are other focus areas of the
policy that do not require extensive
funding - such as mending policies that
can go on now. •
13 BH24 COMMENT
Why ZimAsset is such a good policy

14. BH24

15. The International Monetary Fund (IMF)
said on Wednesday lending to Kenya's
manufacturing sector was picking up,
supporting expectations of robust eco-
nomic growth.
Economic expansion in the East African
nation slowed to 4.1 percent in the first
quarter of this year from 5.2 percent a
year earlier.
A spate of gun and bomb attacks have
scared away tourists, while low rainfall
curbed farm output.
But the IMF told a news conference
the increase in lending to manufactur-
ers, renewed foreign investor interest,
mainly in the extractive industries, and
stable macroeconomic policies would
support overall growth.
"These are also supporting signals
that are positive for increased growth,
certainly if not immediately, then over
time," Mauro Mecagni, who led an IMF
appraisal mission to Nairobi, said at the
end of the visit. The IMF expects Ken-
ya's economy to grow by 5.5-6 percent
this year and Mecagni said data from
one quarter alone was not enough to
warrant an immediate review of the
projection.
The government expects the economy
to grow by 5.8 percent this year while
the World Bank forecasts 4.7 percent.
Kenya's debut Eurobond, which was
oversubscribed by five times last
month, reinforced the sense of confi-
dence, Mecagni added. The IMF also
expects 47 new counties, created last
year to decentralise government, to
help economic growth by channelling
development funds more effectively,
the IMF said.
The counties have struggled to use
their budgets effectively in the fiscal
year ended June. ― Reuters •
15 REGIONAL News
IMF says credit to Kenyan manufacturers picking up, to support growth

16. BH24

17. 17 DIARY OF EVENTS
The black arrow indicate level of load shedding across the country.
POWER GENERATION STATS
Gen Station
10 July 2014
Energy
(Megawatts)
Hwange 551 MW
Kariba 750 MW
Harare 45 MW
Munyati 29 MW
Bulawayo 21 MW
Imports 0 MW
Total 1396 MW
14 July - BNCResultsPresentationupdate, Place:
Chapman Golf Club, Time: 9.30 to 11.30 am.
16July -MobileMarkets&TelecomsForumCon-
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

18. BH24

19. 19 zse
ZSE
Movers CHANGE Today Price USc SHAKERS Change TODAY Price USc
Zimre 12.50% 0.90 Masimba -15.00% 1.70
NicozDiamond 8.33% 1.30 Falgold -9.09% 2.00
BNC 4.65% 4.50 Powerspeed -5.88% 1.60
Seedco 1.37% 73.00 Delta -3.85% 125.00
Econet 1.09% 74.00 AfricanSun -3.57% 2.70
Old Mutual 0.04% 256.10 Zimplow -1.23% 8.00
Indices
Index Previous Today Move Change
Industrial 188.80 186.63 -2.17 points -1.15%
Mining 55.33 56.97 +1.64 points +2.96%
Stocks Exchange

20. BH24

21. 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 matter
and those who matter
don't mind." ― Dr. Suess
Globalshareholder.com

22. BH24

23. China's central bank and currency reg-
ulator are investigating a state media
report that alleged Bank of China Ltd
broke rules on transferring money over-
seas, two government officials familiar
with the matter said.
The probe focuses on whether Bank of
China violated regulations in its opera-
tions or aided money laundering, the
people said, asking not to be named as
they aren’t authorized to speak publicly
on the matter.
Starting an investigation doesn’t mean
the Beijing-based bank has done any-
thing wrong, they said.
Bank of China, the nation’s largest for-
eign-exchange lender, yesterday denied
a report by China Central Television
claiming that it circumvented the rules
by helping customers transfer unlimited
amounts of yuan overseas and convert
it into other currencies through a prod-
uct called “Youhuitong.”
The bank said it introduced a cross-bor-
der yuan transfer service in 2011 with
the knowledge of authorities.
Apressofficerforthebankdidn’timme-
diately respond to a request today for
comment on the probe. The People’s
BankofChinaandtheStateAdministra-
tion of Foreign Exchange didn’t immedi-
ately reply to faxes seeking comment.
Chinese foreign-exchange rules cap
the maximum amount of yuan that
individuals are allowed to convert into
other currencies at $50,000 each year
and ban them from transferring yuan
abroad directly. Policy makers have
taken steps in recent years including
allowing freer movements of capital in
and out of China as they seek to boost
the global stature of the yuan.
Shares Fall
Shares of Bank of China in Hong Kong
fell 1.2 percent to HK$3.45 as of the
city’s midday trading break. The stock
slid 2.8 percent yesterday, the most on
the Hang Seng Finance Index, following
the CCTV report.
Media reports referring to “an ‘under-
ground bank’ and 'money laundering'
are inconsistent with the facts,” Bank of
China said in a statement on its website
yesterday.
The cross-border yuan transfer service
onlyallowsmoneytobemovedforemi-
gration and overseas property invest-
ment, it said. ― Bloomberg •
23 INTERNATIONAL NEWS
China said to probe alleged Bank of China money laundering

24. By Sifelani Tsiko
Zimbabweissettoembarkonanambi-
tious program to boost the country’s
rice output after the country signed a
memorandum of understanding with
China recently.
Businessman and farmer, Ambassa-
dor Christopher Mutsvangwa struck a
deal with renowned Chinese agricul-
tural scientist Professor Yuan Longpin’s
National Hybrid Rice Research and
Development Center in Changsha in
Hunan Province to start a pilot hybrid
rice production exercise that could eas-
ily transform Zimbabwe into a major
rice growing hub in the Sadc region
using varieties suitable to local condi-
tions.
“After I met Professor Yuan Longpin –
revered as the “Father of Hybrid Rice,”
Yuan expressed his desire to support
the pilot project to enhance the coun-
try’sriceoutputandreducehungerand
poverty,” said Ambassador Mutsvan-
gwa who is also Foreign Affairs Deputy
Minister. He signed an Mou on behalf of
his firm, Moncris Private Limited while
Prof Longpin signed for the National
Hybrid Rice Research and Develop-
ment Center, under a deal which was
approved by Agriculture, Mechanisa-
tion and Irrigation Development Minis-
ter Joseph Made.
“Prof Longpin pledged to put capital
into the rice project to make Zimba-
bwe the rice breeding pad of southern
Africa,” Ambassador Mutsvangwa said.
“The ministry of agriculture is part of
this project and a team of technical
experts is coming in the third week of
July to start making preparations for
the implementation of the rice project
at my farm in Norton.
“Prof Longpin also expressed his desire
to meet the President (Mugabe) dur-
ing the upcoming summits” Under the
agreement, the Chinese rice develop-
ment centre will provide rice hybrid
varieties for on-farm trials by Moncris
on Zimbabwean soil.
“On completion of this initial seed trial
both parties will evaluate the results
and make necessary recommenda-
tions for further progress.
Moncris will provide the land, labour,
logistical support and finally seek the
necessary Government approval to
ensuresmoothprogressofallcommer-
cial activities carried out by all parties
partaking in this agreement,” read the
24 Analysis
Realising Zimbabwe’s rice promise

25. MOU.
All sides committed themselves to
subsequently set a formal agreement,
form a joint venture company to coop-
erate and implement large scale hybrid
rice production.
The key objective of the deal supported
by both the Chinese and Zimbabwean
governments is to enhance the coun-
try’s long term food security position
and food production strategies.
Agricultural experts say rice is rapidly
growing in importance in Zimbabwe
and most other African countries. They
say it is now the leading provider of
food calories in West Africa and Mada-
gascar and it is now the second largest
source of food energy in sub-Saharan
Africa as a whole.
“Wheat as a winter crop is facing seri-
ous challenges,” said Ambassador
Mutsvangwa. “We cannot compete
with countries such as Argentina and
others that produce the crop at lower
cost.
So it is imperative to seek strategies
to boost the production of crops such
as rice to fight against hunger.” He said
the growing demand for rice provides
a strong impetus to explore ways to
improve growth and efficiency of local
rice production as well as developing
policies to control large imports that
can impede the development of the
domestic rice sector.
Many families in Zimbabwe are now
spending a greater share of their total
budget on rice and an agricultural
expert at the University of Zimbabwe
says rice is no longer a luxury food but
hasbecomethemainsourceofcalories
for many people in the country.
“There is huge shift from maize to rice
as the younger generation seeks food
which is cheaper and easy to prepare,”
he says. “Urbanisation is changing the
country’s food taste and such projects,
if well supported, can enhance the
country’s food security and cut huge
amounts spent on imports.”
He says rice driven by urbanization is
now increasingly the food of choice as
food tastes become globalized. The
opportunity costs of women’s labour,
the ease and rapidity of cooking rice
are key factors in urban areas.
Other experts say urbanisation is often
accompanied by increased consump-
tion of food away from home, some-
thing which has spurred rice demand
due to the convenience of rice storage,
preparation and cooking. To be con-
tinued tomorrow
25 Analysis