US embassy cable - 02HARARE2622

UNCLAS SECTION 01 OF 04 HARARE 002622 
 
SIPDIS 
 
USAID/W FOR DCHA/OFDA FOR HAJJAR, KHANDAGLE AND MARX 
DCHA/FFP FOR LANDIS, BRAUSE, SKORIC AND PETERSEN 
AFR/SA FOR POE AND COPSON 
AFR/SD FOR ISALROW AND WHELAN 
STATE FOR AF/S DELISI AND RAYNOR 
NAIROBI FOR DCHA/OFDA/ARO FOR RILEY, MYER AND SMITH 
REDSO/ESA/FFP FOR SENYKOFF 
GENEVA PLEASE PASS TO UNOCHA, IFRC 
PRETORIA FOR USAID/DCHA/FFP FOR DISKIN 
DCHA/OFDA FOR BRYAN AND FAS FOR HELM 
ROME PLEASE PASS TO FODAG 
 
E.O. 12958: N/A 
TAGS: EAID, PREL, US, ZI 
SUBJECT: WORLD FOOD PROGRAMME ZIMBABWE STATUS UPDATE 
 
 
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SUMMARY 
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1.  During October 2002, the World Food Programme (WFP) 
distributed 22,495 metric tons (MT) of food commodities, 
falling short of its planned distribution of 33,060 MT. 
Nevertheless, because of increased food insecurity in 
Zimbabwe, WFP is expanding its targeted number of 
beneficiaries from 1.9 million to 5.8 million, and the 
number of districts covered from 25 to 57.  Due to 
insufficient resources to meet this increased need, WFP 
is projecting a shortfall of 167,169 MT food commodities 
between November 2002 and the end of March 2003.  There 
is currently 61,000 MT of U.S.-donated maize for Zimbabwe 
in or arriving at ports in southern Africa.  Lack of 
sufficient authorized capacity to mill U.S.-donated maize 
into maize meal is severely delaying shipment into 
Zimbabwe and will further compound WFP resource 
constraints.  WFP Country Director doubts that a 
negotiated swap of 17,500 MT maize with the Government of 
Zimbabwe's Grain Marketing Board will take place.  END 
SUMMARY. 
 
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OCTOBER DISTRIBUTION FALLS SHORT OF TARGET 
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2.  During October 2002, WFP and its implementing 
partners (IPs) distributed a total of 22,495 MT food 
commodities for 1.5 million beneficiaries in 25 of 
Zimbabwe's 57 districts.  This total consisted of 21,537 
MT maize, 144 MT vegetable oil, 747 MT beans, and 67 MT 
corn-soy blend (CSB).  The distribution fell short of 
WFP's target of 33,060 MT and 1.9 million beneficiaries 
because of a fragile pipeline and continued problems with 
the importation of biotech maize.  The cumulative total 
of food aid distributed between April and October is 
78,271 MT. 
 
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WFP TO EXPAND DISTRIBUTION TO ALL 57 DISTRICTS 
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3.  Through October 2002, WFP had been targeting the 25 
districts that had been hardest hit by the food security 
crisis.  WFP's original Southern Africa Region (SAR) 
Emergency Operation (EMOP) 10200.0 called for 
distribution to 3.9 million beneficiaries.  To date, due 
to capacity and resource constraints, WFP has been unable 
to meet this target.  Nevertheless, in response to the 
projected increase in food insecurity that was detailed 
in the Zimbabwe Vulnerability Assessment Committee's 
(VAC) Emergency Food Security Assessment Report (dated 
September 16, 2002), WFP intends to expand the number of 
beneficiaries and districts that it is targeting in 
Zimbabwe over the coming months.  During November, WFP 
plans to target 36 districts and 3.0 million 
beneficiaries.  The December target is 44 districts and 
4.5 million beneficiaries.  The January (2003) target is 
for all 57 districts and 5.5 million beneficiaries. 
February and March targets are 57 districts and 5.8 
million beneficiaries.  NOTE: The difference between 
WFP's planned 5.8 million beneficiaries and the VAC 
report's estimated 6.7 million eligible Zimbabweans is 
expected to be covered by USAID's new parallel NGO 
pipeline (termed C-SAFE) and other lesser bilateral 
activities. END NOTE. 
 
4.  Currently there are ten national and international 
private voluntary organizations (PVOs) with agreements to 
work as Implementing Partners (IPs)of WFP.  The PVOs are 
working/will work in the following districts: 
CARE:  Gweru, Chirumanzu, Gutu, Bikita, Zaka, Masvingo, 
Chivi, Zvishavane, Mberengwa, Mwenezi. 
CHRISTIAN CARE:  Kariba, Guruve, Muzarabani, Rushinga, 
Shamva, Bindura, Mazowe, Zvimba, Buhera, Chimanimani, 
Chipinge. 
CONCERN:  Nyanga, Kwekwe, Gokwe. 
CATHOLIC RELIEF SERVICES:  Makonde, Chegutu, Kadoma. 
GOAL:  Hurungwe, Makoni. 
HELP AGE ZIMBABWE:  Nkayi. 
LUTHERAN DEVELOPMENT SERVICES:  Shurugwi. 
ORAP:  Hwange, Tsholotsho, Umzingwane, Insiza. 
PLAN INTERNATIONAL:  Mutasa, Mutare. 
WORLD VISION:  Mount Darwin, Mudzi, Mutoko, Murehwa, 
Goromonzi, Marondera, Chitungwiza Seke, Wedza, Chikomba, 
Chiredzi, Beitbridge, Gwanda, Matobo, Bulilimamangwe, 
Bulawayo, Bubi, Lupane, UMP. 
 
5. NOTES: (1) The more recently approved IPs, such as 
CONCERN, GOAL and CRS, will only commence distributions 
in their respective assigned districts in November and 
December.  (2) While World Vision (WV) is an IP of WFP, 
their activities in Beitbridge and Bulilimamangwe 
Districts are being resourced through a USAID bilateral 
Title II program.  (3) To date, the Government of 
Zimbabwe (GOZ) has prohibited Save the Children 
Federation/UK (SCF-UK) from working as an IP of WFP in 
Zimbabwe.  Following extensive negotiation with the GOZ, 
SCF-UK has finally received formal GOZ approval to resume 
bilateral food distributions in the Binga District, 
however, not as an IP of WFP.  SCF-UK food distributions 
in Binga are expected to begin this week. (4) The Mission 
received notification this week that Action Against 
Hunger and the German NGO HELP had also received GOZ 
approval to participate in WFP program operations in 
Zimbabwe, bringing the new total number of approved WFP 
NGO IPs to 12 (plus SCF-UK's bilateral program in Binga 
noted above). 
 
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WFP HAS INSUFFICIENT RESOURCES TO MEET NEEDS 
--------------------------------------------- - 
 
6.  Even though WFP is planning to expand the number of 
beneficiaries and districts covered by its operations, it 
does not have sufficient resource commitments to meet the 
projected needs.  For example, CD Farrell noted that WFP 
currently has only 16,000 MT of commodities in Zimbabwe, 
less than one month's supply.  As a result, WFP is 
projecting a shortfall of 167,169 MT of food commodities 
between November 2002 and the end of March 2003.  The 
total shortfall consists of 88,003 MT cereals, 22,429 MT 
pulses, 4,775 MT vegetable oil, and 51,962 MT corn-soy 
blend (CSB).  The projected monthly shortfall of cereals 
is as follows (in MT): November - 2,644; December - 
27,350; January (2003) - 22,450; February - 21,862; and 
March - 13,697.  Under these circumstances, Kevin 
Farrell, Country Director (CD) of WFP's operations in 
Zimbabwe, admits that WFP's expanded beneficiary numbers 
noted above are "ambitious targets", considering the 
current import delays and resource constraints. 
 
7.  To date, WFP's Southern Africa Region (SAR) Emergency 
Operation (EMOP) 10200.0 for Zimbabwe has been 48.8 
percent resourced, receiving USD 111,952,689 of a 
requested USD 229,390,598.  NOTE:  This cumulative total 
represents a corresponding 250,603 MT of food, or 55% of 
the total requested 452,955 MT of commodities.  END NOTE. 
The United States is the largest single donor to EMOP 
10200.0, having contributed USD 46,700,000 (or 108,864 
MT), equal to 20.4 percent of the EMOP and 41.7 percent 
of the total contributions to date (as of October 28, 
2002).  EMOP 10200.0 covers the nine-month period July 1, 
2002 to March 31, 2003. 
 
8. Based on received and planned imports, WFP currently 
projects Zimbabwe's cereal gap until the next harvest to 
be about the same as that presented in the September VAC 
report - 370,000 MT.  Significantly, this figure is based 
upon 498,000 MT of GOZ imports already received, and 
465,000 MT of additional planned GOZ imports, 
approximately 370,000 MT of which has been confirmed as 
"contracted" by the GOZ to date.  NOTE:  Although 
contracted, most knowledgeable observers remain skeptical 
that all of these additional GOZ imports will actually 
materialize, given the parlous state of the government's 
finances.  END NOTE.  This projected gap also presupposes 
195,000 MT of additional WFP imports, plus 62,000 MT of 
additional food imports from USAID's C-SAFE and other 
complementary/parallel pipeline sources. 
 
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LACK OF MILLING CAPACITY CAUSES 
U.S. MAIZE TO SIT IN PORTS 
-------------------------------- 
 
9.  Currently, large quantities of U.S.-donated 
commodities for the southern Africa region remain in 
regional ports.  Some 37,893 MT U.S.-donated maize 
designated for Zimbabwe sits in the ports of Maputo, 
Mozambique and Durban, South Africa.  Another 23,000 MT 
maize for Zimbabwe is currently arriving in port aboard 
the Liberty Sun, bring the total to about 61,000 MT. 
Because of concerns over the biotech issue, this maize 
must be milled into maize meal and labeled before it can 
be distributed to beneficiaries in Zimbabwe.  In order 
for the maize to be milled in Zimbabwe, the mill must be 
authorized and monitored by the GOZ's Biosafety Board. 
To date, only National Food's Bulawayo mill, which has 
the capacity to mill up to 12,000 MT per month, has 
received authorization to perform this work.  WFP 
estimates that Zimbabwean mills have the capacity to mill 
at least 50,000 MT per month.  The lack of sufficient 
authorized milling capacity in Zimbabwe is severely 
limiting WFP's ability to meet the needs of its program. 
WFP has appealed to the GOZ to expand the list of 
authorized millers to include sites in Harare and Gweru. 
 
10.  In a monthly donors' meeting in Harare on November 
13, 2002, WFP CD Farrell reported that of 13,000 MT U.S. 
maize delivered to the Bulawayo mill, some 8,000 MT had 
already been milled.  He also reported that WFP had 
visited the mills in South Africa where the Government of 
South Africa had agreed to mill 60,000 MT of U.S. maize 
donated to the regional EMOP 10200.0.  At this time, it 
is not clear when the South African milling-donation will 
take place. 
 
11. Although secondary transport (to mid-stream and final 
distribution points) is not yet a major problem, CD 
Farrell noted that fuel shortages are becoming an 
increasing constraint.  An additional constraint is 
inadequate storage facilities, with commodities stored in 
open air warehouses and tents subject to more rapid 
deterioration from the elements.  On a more positive 
note, he noted that the average waiting time for customs 
clearance at the major Beitbridge border post had been 
reduced from 3 days to 26 hours. 
 
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WFP CD DOUBTS MAIZE SWAP WILL TAKE PLACE 
----------------------------------------- 
 
12.  WFP CD Farrell also reported that he did not believe 
that the planned swap of 17,500 MT of U.S. maize with the 
GOZ's Grain Marketing Board (GMB) was likely to take 
place.  Under the terms of the swap agreement, the GMB 
would give 17,500 MT of non-biotech maize in exchange for 
the U.S.-donated maize.  WFP would then distribute the 
whole-kernel maize, while the GMB would mill the U.S.- 
donated maize.  He reported that he did not think that 
the GMB possessed sufficient quantities of maize at this 
time to effect this swap.  Until this swap agreement is 
carried out or terminated, WFP must continue to warehouse 
the 17,500 MT maize at port in readiness should the swap 
move forward. 
 
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COMMENT 
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13.  At the monthly briefing, WFP CD Farrell's 
presentation was a valiant effort to put a positive spin 
on an increasingly difficult country situation.  While 
progress continues on NGO IP approvals, and increased 
geographic coverage and the numbers of beneficiaries 
reached, these positive developments mask a fundamentally 
fragile pipeline exacerbated considerably by import and 
distribution bottlenecks associated with the biotech 
issue.  Until and unless these issues are fully resolved, 
WFP's efforts to meet expanding needs in Zimbabwe will 
continue to suffer from significant resource constraints. 
Efforts continue to resolve these issues to final 
satisfaction with the GOZ, so that the program may 
proceed to meet its expanded targets over the coming 
critical months before the next harvest. SULLIVAN