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Scholars Journal of Economics, Business and Management | Volume-1 | Issue-03
The Impact of Sanctions on Rhodesia’s Coffee Industry: 1965 – 1980
TakesureTaringana
Published: April 30, 2014 | 114 74
DOI: 10.36347/sjebm.2014.v01i03.006
Pages: 116-125
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Abstract
Abstract: This paper argues that the sanctions that were imposed on Rhodesia as punishment for its Unilateral Declaration of Independence (UDI) in 1965, acted as a major stimulus for the development of the coffee sector in the country. Up to 1965, coffee was among neglected crops tagged “side-lines”. Tobacco was the largest sector accounting for above half of total agricultural output and one third of all Rhodesian exports. As a result of sanctions, the tobacco industry was the hardest hit and owing to its central position in the country, the entire economy was affected. This forced the government to make bold policy decision to diversify the Rhodesian agricultural base. The government bankrolled diversification schemes to encourage farmers to move away from tobacco and encourage other crops wherever they could commercially thrive. This was done to cover for the export revenue lost as a result of the economic onslaught. Coffee was seen as a crop that could be economically established in the Eastern Districts. To this end the government rolled out various financial support schemes under the Ministry of Agriculture to encourage settlers to undertake coffee farming. These were backed by vigorous research programmes into the crop. Between 1965 and 1980, the coffee industry became a significant sector in the country in terms of foreign exchange contribution and employment.