Online Reporter
Wayne Matyukira
Agriculture remains the lifeblood of Zimbabwe’s economy, employing nearly 67 percent of the rural population and contributing approximately 12–14 percent to GDP, according to Ministry of Finance data.
Yet, despite this critical role, the sector has for decades been characterised by subsistence farming smallholder farmers tilling the land primarily to feed their families rather than to generate wealth.
The time has come for a paradigm shift: from survival-based agriculture to agribusiness-driven models that create jobs, build wealth, and eradicate poverty so as to achieve our vision 2030 which states that Zimbabwe should be an upper-middle income economy.
Why Agriculture Holds the Key
Poverty in Zimbabwe is predominantly rural. According to ZIMSTAT (2023), about 70% of rural households live below the poverty datum line, and the majority depend on agriculture as their primary income source. This reality positions agriculture as the most potent tool for poverty alleviation. Unlike mining or manufacturing, which demand high capital and technical skills, agriculture provides inclusive entry points for women, youth, and vulnerable households.
Yet, the sector’s potential remains largely underutilised. Yields for staple crops like maize average 0.8–1.2 tonnes per hectare, far below the regional average of 2,5 tonnes and international benchmarks of 5 tonnes under optimal conditions.
The reasons are clear: limited access to finance, inadequate irrigation infrastructure, outdated farming practices, and climate change vulnerabilities.
The 2025 Mid-Term Budget Review noted that only 10 percent of Zimbabwe’s 3.5 million hectares of arable land is under irrigation a figure that must rise if we are to transform agriculture from subsistence to enterprise.
Policy Anchors for Transformation
The Government has laid out a robust framework under the National Development Strategy 1 (NDS1), emphasizing agriculture as a pillar for economic recovery and rural industrialisation. Initiatives like Pfumvudza/Intwasa, which has enhanced household food security, are commendable.
However, as The Herald (July 2025) editorial argued, “Food security is the foundation, but wealth creation is the superstructure.”
This means moving beyond subsistence programmes to value-chain development, mechanization, and market access.
The Agricultural and Food Systems Transformation Strategy (2020–2030) aligns with this thinking by targeting US$8,2 billion agricultural GDP by 2025. To achieve this, smallholder farmers must graduate into commercial farming through contract farming models, agro-processing clusters, and access to structured markets.
The Case for Value Chains
A major weakness in Zimbabwe’s agricultural system is its thin value chains. For example, in tobacco a crop that brought in US$1,2 billion in 2024 over 80 percent of the crop is exported raw, with little value addition. The same applies to cotton, which NewsDay (June 2025) lamented as “a sleeping giant,” noting that 90 percent of lint is exported while local textile industries operate below 30 percent capacity.
Imagine the employment and income multipliers if these crops were processed locally. According to a 2024 FAO report, every dollar invested in agro-processing yields three times more in value addition compared to raw commodity exports.
Developing rural agro-industrial parks, as outlined in the Government’s Rural Industrialization Programme, can anchor this transformation, creating rural jobs and reducing urban migration pressures.
Financing the Shift
One cannot speak of agribusiness without addressing access to finance a persistent bottleneck for smallholder farmers. The 2025 Mid-Term Budget increased allocations to the Agricultural Finance Corporation to support concessional loans for farmers. While this is positive, uptake remains low due to collateral requirements and high perceived risk by financial institutions.
Innovative financing mechanisms such as warehouse receipt systems, crop insurance schemes, and public-private partnerships for irrigation development must be scaled up.
Kenya’s experience with warehouse receipt systems offers a practical model: farmers deposit produce in certified warehouses, receive receipts they can use as loan collateral, and sell when prices peak. Why can’t Zimbabwe replicate this?
Climate-Smart Imperatives
No conversation about agriculture today can ignore climate change. The 2023–24 El Niño-induced drought slashed maize output to 1,3 million tonnes, forcing Zimbabwe to import grain at a time when foreign currency is scarce.
Future-proofing agriculture requires scaling up irrigation especially in lowveld areas alongside promoting drought-tolerant crops like sorghum and millet.
Pfumvudza has introduced conservation agriculture, but it must be complemented by solar-powered irrigation and renewable energy-driven processing units to cushion farmers from erratic rainfall and high electricity costs.
Examples of Progress
Encouragingly, there are pockets of success. The Command Wheat Programme turned Zimbabwe from a wheat importer into a net exporter in 2022, achieving a record 375 000 tonnes.
Similarly, the dairy sector, supported by the Dairy Revitalisation Fund, has boosted raw milk production to 105 million litres in 2024, according to The Herald (April 2025). These examples demonstrate that with the right policies and private sector engagement, transformation is possible.
Way Forward: The Agribusiness Imperative
To unlock agriculture’s full potential for poverty alleviation, Zimbabwe must adopt a three-pronged approach:
Invest in Infrastructure: Expand irrigation, rural roads, and storage facilities to reduce post-harvest losses and increase productivity. The Government of Zimbabwe has engaged in a strategic bilateral cooperation agreement with Belarus. This partnership centres on agricultural mechanisation, with Belarus providing advanced machinery and technical expertise aimed at modernising Zimbabwe’s agricultural sector.
Deepen Value Chains: Establish rural agro-industrial hubs and give incentives to local processing of crops like tobacco, cotton, and horticultural products.
Enable Inclusive Financing: Scale up innovative credit models and crop insurance to de-risk agriculture, while embracing ICT platforms for market linkages.
Conclusion
As NDS1 enters its final stretch towards 2025, agriculture must shift from being a survival activity to a profitable enterprise that feeds, employs, and enriches the nation. Poverty will not be eradicated through handouts or piecemeal interventions; it requires a deliberate, systemic transformation anchored in agribusiness. The seeds have been sown the harvest of prosperity depends on how boldly we act now.
Wayne Matyukira, is an Economic Analyst For feedback email: [email protected] or contact +263776954317
