Zim govt moves to reduce agric raw material imports, boost local farmers

The Zimbabwe government is implementing reforms that will
require millers, stockfeed producers, and food processors to rely more on
home-grown crops, in an effort to reduce import dependence and improve local
agriculture.

• Zimbabwe
  is introducing reforms requiring millers, stockfeed producers, and food
  processors to source at least 40 percent of their raw materials from local
  farmers starting April 1, 2025.
• The
  local sourcing requirement will gradually increase until the industry
  achieves full compliance by 2028.
• The
  reforms aim to reduce the country’s reliance on agricultural imports,
  which have more than doubled in value over the past decade.
• A
  pricing protection policy will direct the price difference from cheaper
  imports into an Agriculture Revolving Fund to support domestic farmers.

Beginning April 1, agro-processing enterprises must get at
least 40 percent of their raw materials from local farmers, according to new
regulations outlined in Statutory Instrument 87 of 2025.

The policy is intended to be a progressive transition, with
the demand for local sourcing increasing slowly until full compliance is
achieved by 2028.

The bill, presented last year by Zimbabwe’s Lands, Agriculture, Fisheries, Water, and Rural Development minister Anxious
Masuka, represents a significant shift in how the country provides its food and
processing sectors.

 Furthermore, Zimbabwe’s aggregate food import expenditure
reached an estimated $976.1 million in 2024, representing a significant 55.2
percent increase from the $628.9 million recorded in 2023.

 This surge was primarily driven by the procurement of grain
and oilseeds necessitated by an El Niño-induced drought.

 To further aid in bolstering domestic production, the new
laws include a pricing protection policy.

 The law mandates that if imported items enter the country at
a lower cost than producing identical goods domestically, the difference will
be directed to an Agriculture Revolving Fund.

 The country’s Farmers Union welcomed the new regulations and
touted them as a progressive step towards enhancing the local agricultural
industry.

 “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.”

 On the flip side, some industry players have expressed
concern about the law’s impact on their ability to source cheaper imports on
the international market. – BusinessInsiderAfrica