Online Reporter
Michael Tome, Business Reporter
ZIMBABWE’S agricultural sector rebound is expected to propel strong growth in sales across key sub-sectors of the domestic economy, ultimately benefiting associated businesses, analysts and agriculture-related firms say.
The strong performance of agriculture this year is expected to drive business in the agro-processing, transportation and rural retail sub-sectors and related value chains.
Given its strategic importance to Zimbabwe’s economy, the sector is also expected to contribute significantly towards Zimbabwe’s economic growth target of 6 percent this year, following the muted 2 percent expansion last year.
A strategically important economic segment of Zimbabwe’s economy, agriculture is projected to recover to grow by 12,8 percent in 2025, following the 15 percent contraction in 2024 due to the impact of El Niño-induced drought.
This growth is forecast will be driven by a bumper winter wheat harvest, projected to be higher than initially projected, coupled with good maize and tobacco harvests this season following the good rains received in the 2024/5 season.
In that regard, the manufacturing sector is now projected to grow by 3,1 percent in 2025.
The growth in agricultural output will positively impact agro-processing, including the food, livestock and poultry feed production, which would drive production and increase economic activity.
This is also expected to cascade to drinks and beverages manufacturing subsectors.
Analysts expect agriculture’s strong outturn to stimulate spending of disposable incomes across various sectors of the economy, including construction.
Companies from various subsectors of the economy, like clothing and retail, beverage makers, motoring, construction and household appliances suppliers are already bullish about sales prospects on the back of agriculture’s upswing.
Similarly, agriculture’s recovery could benefit logistics and transportation companies, as freight volumes rise due to increased transportation of crop produce to markets and processing facilities countrywide.
In rural areas, agriculture’s recovery is translating into increased retail activity as farmers’ incomes rise, propelling spending in local shops and other businesses, stimulating economic activities in these areas.
This comes as Zimbabwe this year surpassed its previous record for tobacco production, achieving a historic milestone with over 300 million kilograms sold by farmers this season.
As of 30 June 2025, farmers had sold a record 323 million kilogrammes (kg) of tobacco, a 47 percent increase from 219 million kgs sold for the same period last year, benefiting from growth in contract farming and price stability.
This achievement marks a significant milestone for the country’s tobacco industry, after it exceeded the previous record of 296 million kg achieved in 2023, according to the Tobacco Industry and Marketing Board (TIMB).
Tobacco is one of Zimbabwe’s largest export earners, along with gold and platinum.
Zimbabwe is the largest producer of tobacco leaf in Africa and the fourth-largest globally for flue-cured tobacco.
The Southern African nation has witnessed marked growth in wheat production in recent years, achieving record highs and moving towards self-sufficiency.
This year, the country expects to harvest a minimum of 600 000 metric tonnes from the winter crop, exceeding the national requirement of 360 000 tonnes.
In 2024, it produced 563 961 tonnes of wheat, surpassing its previous record of 465,548 tonnes in 2023, attributable to Government initiatives and collaborative efforts with banks and farmers.
A significant rebound is also anticipated in maize production for the 2024/25 season, with projections pointing to upwards of 2,3 million tonnes following a recovery from the devastating drought in the 2023/24 season.
El Niño-induced drought had wiped out about 70 percent of the country’s rain-fed crops.
The strong growth in agriculture will be complemented by stellar performance in horticulture, which is poised for similar impressive growth in production this year, driven by hectarage growth and orchards reaching maturity, particularly for high-value crops like avocados, citrus and blueberries.
Blueberry production is projected to grow by 50 percent to 12 000 tonnes in 2025 this year, a rise from 8 000 tonnes in 2024.
“Agriculture is projected to grow by 12,8 percent in 2025 with recovery anchored on improved rainfall, greater access to inputs and favourable producer prices.
“Agricultural sector recovery is driving higher input sales, agro-processing capacity, freight volumes, and rural retail activity, turning around fortunes of economic agents in those spaces,” said FBC Securities in its 2025 half-year report.
African Distillers (Afdis) chairman Mr Matlhogonolo Valela said he was bullish about the business growth prospects on the back of a successful 2024/25 agricultural season.
“The company remains optimistic on economic growth from a favourable agricultural season, growth in mining, tourism and infrastructure development.
These factors are anticipated to create opportunities for increased activity and business growth,” said Mr Valela.
Unifreight group chief executive officer, Mr Richard Clarke, said his company had secured new contracts and expanded its fleet to transport increased volumes on the back of an outstanding tobacco harvest in 2025.
“Tobacco remains key to our strategy and with a bumper tobacco crop expected in 2025, we will transport substantially higher tobacco volumes for our clients; we have secured additional merchant contracts and expanded our fleet accordingly,” said Mr Clarke.
Agriculture is a vital sector of the Zimbabwean economy, contributing significantly to employment, raw material supply and export earnings.
While its direct contribution to GDP is around 11 percent-14 percent, it supports livelihoods for approximately 70 percent of the population and provides 60 percent of the raw materials for the manufacturing sector.
Furthermore, about 45 percent of the country’s exports are agricultural products.
