Sweet returns.

The dramatic recovery of Zimbabwe's drought stricken agricultural sector is epitomised by the sugar milling industry, which, just two years after "the worst drought in record history" is anticipating record harvest and substantial exports.

In 1992 Zimbabwe's premier sugar estate, Anglo American owned Hippo Valley, lost 89 per cent of its 11,000 hectares of sugar cane. The 1993 milling figures reached an all time low of 26,000 and the 55,000 people dependent upon the estate's 4,800 permanent staff and 3,000 contract workers underwent severe economic hardships.

During this lean time 230,000 tonnes of sugar had to be imported at a cost of 400 million Zimbabwe dollars to cater for the country's needs.

Today the Zimbabwean sugar industry as a whole is expecting a bumper harvest of 500-530,000 tonnes. Hippo Valley alone is confident of a harvest in excess of the 1986/87 record of 274,000 tonnes.

The anticipated sugar surplus of about 250,000 tonnes should earn the country between Z$550m and Z$600m in exports. This will enable Zimbabwe to fulfill a European Union export quota of 31,000 tonnes and a United States quota of 12,000 tonnes.

The balance of the surplus will be offered on the volatile world market where Canada has already placed orders worth 60,000 tonnes.

Hippo Valley's miraculous turnaround was facilitated by the provision of Z$124m worth of offshore loans. Z$83m were provided by the International Finance Corporation (IFC) while the Commonwealth Development Corporation (CDC) allowed Hippo Valley to borrow Z$41m.

Prior attempts to obtain assistance from the Zimbabwean government and the local banking sector had been defeated by the sheer magnitude of the amount required.

To minimise the future effects of the droughts which characterise the lowveld of South Eastern Zimbabwe, where the sugar plantations are situated, the estate intends to build a 66,000 megalitre dam, due for completion in 1996.

Government is also playing its part in ensuring the viability of this vital industry and has invited tenders for the building of a dam, reputedly worth hundreds of millions of dollars, at the junction of the Tokwe and Mukorsi rivers.

With the successful rehabilitation of this estate and the entire Zimbabwean sugar industry, the sugar shortages are a thing of the past.