HARARE – Zimbabwe’s Treasury has approved a new levy regime on selected grain and oilseed imports in a move aimed at protecting domestic producers from cheaper foreign competition, strengthening food security, and generating funding for climate-resilient agricultural infrastructure.
The policy, which takes effect immediately under Statutory Instrument 87 of 2025, reflects a broader government strategy to promote import substitution, support local farmers, and reduce the country’s dependence on imported grain amid growing climate and foreign currency pressures.
In correspondence addressed to the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Finance Secretary George Guvamatanga said the levies are necessary to prevent imported grain from enjoying what Treasury describes as an “implicit subsidy” over locally produced commodities.
The decision follows recommendations from a Joint Technical Committee that identified substantial pricing gaps between imported and domestically produced grain. The committee found that import parity prices exceeded local production parity by approximately US$40 per tonne for maize and US$50 per tonne for soybeans, creating market distortions that could discourage domestic production.
Protecting Local Production
Treasury argues that without corrective measures, lower-priced imports would undermine local farmers’ profitability, weaken incentives for production, and increase Zimbabwe’s vulnerability to external food supply shocks.
“It is the considered position of Treasury that any importation of hard wheat in excess of the stipulated threshold should attract an appropriate levy or charge,” Mr Guvamatanga said.
The government has maintained the existing wheat blending framework, which requires millers to utilise a mixture of 70 percent locally produced soft wheat and 30 percent imported hard wheat. Authorities concluded that the current ratio does not distort domestic prices. However, any hard wheat imports above the permitted threshold will now attract additional charges designed to restore price parity and safeguard local producers.
Agricultural economists say the policy effectively functions as a targeted tariff mechanism intended to level the playing field between domestic and imported grain while encouraging investment in local production.
Revenue Ring-Fenced for Agriculture
Unlike many import duties that flow directly into general government revenues, Treasury has indicated that proceeds generated from the levies will be earmarked for specific agricultural priorities.
The funds will primarily support payments to farmers through the Grain Marketing Board (GMB) while also financing the expansion of smallholder irrigation infrastructure across the country.
The approach reflects a growing recognition among policymakers that Zimbabwe’s long-term food security challenges cannot be addressed solely through production incentives but require significant investment in agricultural resilience.
Although all revenues will legally accrue to the Consolidated Revenue Fund in accordance with the Public Finance Management Act, Treasury said allocations will be directed towards the identified agricultural programmes through Parliamentary appropriations.
Irrigation Investment Gains Urgency
The decision comes as the government grapples with persistent challenges in irrigation development.
Recent project implementation reports reveal that numerous irrigation schemes across eight provinces remain incomplete or underutilised due to delayed electrification, inadequate water supplies, flooding, and other infrastructure bottlenecks.
In parts of Matabeleland South, irrigation systems remain idle because dams have insufficient water reserves, while some projects in Masvingo have experienced delays caused by excessive waterlogging and inaccessible construction sites.
By linking levy revenues directly to irrigation financing, authorities are attempting to create a sustainable funding stream for projects that could reduce agriculture’s dependence on increasingly unpredictable rainfall patterns.
Agricultural analysts note that climate resilience is becoming a central pillar of Zimbabwe’s food security strategy as weather volatility continues to affect crop yields and rural incomes.
New Levy Structure Announced
The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has now published the definitive levy schedule applicable from 19 May 2026 to 31 August 2026.
Under the new framework:
- Maize imports will attract a levy of US$40 per tonne
- Soyabeans will attract US$20 per tonne
- Soybean meal will attract US$35 per tonne
- Soft wheat imports will be charged US$89.25 per tonne
For hard wheat, the levy of US$89.25 per tonne will only apply once an importer exceeds the permitted 30 percent blending threshold. Thereafter, all additional imports will be subject to the charge.
The Ministry said the rates were developed through consultations coordinated by the Agricultural Marketing Authority (AMA) and are consistent with existing regulations governing grain imports.
Balancing Food Security and Market Stability
The policy highlights the delicate balancing act facing Zimbabwean authorities as they seek to stimulate domestic agricultural production while ensuring adequate food supplies and stable consumer prices.
Supporters argue that the levies will improve incentives for local farmers, enhance agricultural investment, conserve foreign currency, and strengthen food security by reducing dependence on imports.
However, some economists caution that import restrictions and levies can also increase input costs for processors and consumers if domestic production fails to meet demand or if supply chain inefficiencies persist.
The effectiveness of the policy will therefore depend on whether additional revenues are successfully channelled into productivity-enhancing investments, particularly irrigation, mechanisation, and market infrastructure.
Transparency Measures Introduced
To strengthen accountability, Treasury has introduced strict reporting requirements covering levy collections, import volumes, and expenditure of generated funds.
Monthly reporting will be mandatory, with authorities warning that failure to remit levy proceeds or comply with prescribed blending requirements could constitute a breach of financial regulations.
The new measures form part of a wider government effort to stabilise Zimbabwe’s agricultural value chain ahead of future production seasons while supporting broader macroeconomic objectives, including food security, foreign currency conservation, rural development, and economic resilience.
For policymakers, the levy represents more than a trade measure. It is an attempt to use fiscal policy as a catalyst for agricultural transformation at a time when climate change, import dependence, and infrastructure deficits continue to challenge Zimbabwe’s long-term growth prospects.
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