BBC Thursday, 5 July, 2001, 22:40 GMT 23:40 UK

Zimbabwe admits food crisis

Zimbabwe has admitted for the first time that it is running out of food and needs foreign aid to help it to buy grain from abroad.

Finance Minister Simba Makoni said there was no provision in the budget for such purchases.

He said he hoped that, where human life was concerned, the government and the donor community could find common cause.

He added that the Zimbabwe dollar was overvalued and warned of a possible tightening of foreign currency controls to curb the black market.

Devaluation was not imminent but could not be ruled out later, he said.

Zimbabwe is facing its worst economic crisis since independence from Britain 21 years ago. A chronic lack of foreign currency has led to a shortage of fuel and other essential imports.

Cereal crisis

United Nations experts say food production has fallen sharply because of the government's attempts to transfer land owned by white commercial farmers to its supporters.

Previously government officials have denied reports that Zimbabwe would not produce enough cereals this year to meet its needs, saying that some sections of society were trying to create artificial shortages.

The UN experts think Zimbabwe will need to buy up to 600,000 tonnes of cereals.

Foreign aid to Zimbabwe has largely dried up because of concerns about human rights and the actions of President Robert Mugabe against his political opponents.

Strike threat

Earlier on Thursday, union leaders threatened an indefinite strike unless the government reversed its recent 70% hike in petrol prices.

The price rises, imposed by the government on 12 June, have further increased inflation, already running at almost 60%.

The union warning came a day after a 48-hour stayaway, which reports said brought the country to a standstill.

Zimbabwe has been racked by a series of strikes organised by the Zimbabwe Congress of Trade Unions (ZCTU) since the late 1990s.

They have generally been called in protest at what the unions call economic mismanagement by President Mugabe's government, leading to a huge decline in living standards.

In 1999, the ZCTU was instrumental in forming the Movement for Democratic Change (MDC), which is now the official opposition party with 56 seats in parliament.

The MDC president, Morgan Tsvangirai, expected to challenge Robert Mugabe in presidential elections next year, used to be the ZCTU's leader.

-- Anonymous, July 05, 2001