It’s now official, Zimbabwe under siege from an Elnino inspired drought. Droughts have impacted the country since time immemorial but the latest wave has rattled everyone. Record high temperatures across the nation but in most areas—farmers yet to plant seeds 2 weeks away from Christmas—and this could be a new record.
We still remain hopeful that the skies could open up as the implications of a drought are dire especially when we have not fully recovered from the Covid-19 shock.
So what are the negative effects coming in the next months?
- Food Shortages: Food shortages definitely obvious leading to food shortages inspired inflation.
- Loss of Income (Farmers): Agriculture is the mainstay of the economy with hundreds of thousands of farmers directly involved in various farming operations. They will take a direct knock from drought leading to loss of income and livelihoods.
- Loss of Income (Value Chain): All activities that support agriculture will absorb the drought impact as there will be far much less production. Few will invest in inputs and obviously output support industries in the direct line of fire.
- Power Generation: Unless more rains come, or a Cyclone comes in the direction of the Zambezi River Basin, Kariba expected to have low water levels thus impacting on power generation. Therefore there is need to watch closely inflow into Kariba. Your power bill expected to be affected by the drought.
- Budget Deficit and Trade Deficit: We will need more funds for the importation of food and judging by the 2024 National Budget—we may not have adequately budgeted for the impending drought. Food imports to worsen the trade deficit as we channel more resources to food importation.
Not looking good for the SADC region in 2024 and unless a miracle happens—we are in deep trouble.
However entrepreneurs well known for solving problems and some could even do extremely well during the anticipated drought period. Opportunities include; (1) Food Import Opportunities Value Chain (2) Alternative Energy Solutions (3) Borehole Drilling (4) Water Bowsers and delivery services (5) Drought resistant crops.
Another interesting angle is that whenever rivers dry up, enterprising locals scour the river beds and bump into minerals such as gold, diamond and other precious minerals. Mining which usually takes a dip due to high water levels, could continue full scale this time around.
Despite a predicted drought, flooding could be experienced in some areas and also factor in the predicted cyclones season from end of January to end of March.
