Source: New grain sourcing rule cuts imports – herald
Zvamaida Murwira
Senior Reporter
Millers, stockfeed manufacturers and food processors will from next week be required to source at least 40 percent of their raw materials from local farmers under new regulations aimed at cutting grain imports, boosting domestic production and strengthening Zimbabwe’s agricultural value chains.
The requirement, contained in Statutory Instrument 87 of 2025, takes effect on April 1 and marks the beginning of a phased programme that will see mandatory local procurement rising to 100 percent by 2028.
The regulations, promulgated last September by Lands, Agriculture, Fisheries, Water and Rural Development Minister Dr Anxious Masuka in terms of the Agricultural Marketing Authority Act, represent a significant shift in how Zimbabwe supplies its agro-processing industries.
Under the new framework, millers and manufacturers will be compelled to prioritise locally-produced commodities, including maize, wheat, soya beans, sunflower and cotton.
Authorities say the policy is designed to curb the country’s growing reliance on imports, which have surged in recent years and placed pressure on foreign currency reserves.
Between 2010 and 2024, imports of key oilseeds and related products – including soya bean, sunflower, cotton seed and crude oil – rose from US$142 million to US$346 million.
Zimbabwe’s overall food import bill reached approximately US$976,1 million in 2024, a sharp 55,2 percent increase from US$628,9 million in 2023, largely due to grain and oilseed purchases following an El Niño-induced drought.
Government views this rising import bill as a major economic vulnerability and is seeking to reverse the trend by promoting domestic production and retention of value within local supply chains.
In a further measure to protect local producers, the regulations stipulate that where imported products land in Zimbabwe at prices lower than the local production cost, the price difference will be channelled into the Agriculture Revolving Fund.
This mechanism is intended to level the playing field by discouraging cheap imports while generating resources to support local farmers through financing and production support programmes.
Farmers have welcomed the policy, saying it provides a guaranteed market and incentives to scale up production.
The Zimbabwe Farmers Union described the regulations as a progressive step towards strengthening the agricultural sector.
“By safeguarding local markets, the regulation helps retain value in our agriculture sector, supports livelihoods in rural communities, and contributes to broader goals of rural resilience and climate-smart agriculture,” the union said.
“The ZFU reiterates its commitment to working collaboratively with Government, processors, input suppliers and extension services to ensure that Zimbabwe’s farmers are ready to respond to the opportunities presented by this regulation.”
Farmers on the ground echoed similar sentiments.
Mr Martin Makaripe, a farmer in Karoi, said the policy would encourage increased production.
“The regulations are progressive and consistent with the Government’s ‘Buy Zimbabwe’ thrust. We are now assured of a ready market and that will push us to expand output,” he said.
In Banket, Mr Tasara Chigonera said the new rules would drive crop diversification.
“I have mainly focused on maize, but with these regulations I am now encouraged to grow other crops such as sunflower and small grains,” he said.
However, the policy has drawn mixed reactions from industry players, particularly millers and manufacturers, who fear it could limit their ability to take advantage of lower-priced imports on the global market.
Some expressed concern that compulsory local sourcing could affect competitiveness, especially during periods when international commodity prices are significantly lower.
“The regulations might have an adverse effect on the principle of free trade. We will be compelled to utilise one market and be precluded from using another one which might be more competitive,” said one miller.
Others called for a gradual implementation approach to allow both producers and processors to adjust.
Government, however, maintains that the policy is necessary to stimulate domestic production, reduce import dependence and build a more resilient agricultural sector capable of meeting national demand.
Reached for comment, Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary Professor Obert Jiri referred all inquiries to the Agricultural Marketing Authority.
However, the AMA had not provided a response by the time of publication.
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