Online Reporter
Tapiwanashe Mangwiro, Zimpapers Business Hub
IN a determined push to boost rural incomes and economies, the Government is escalating efforts to attract private investment in which are being positioned as a catalyst in attaining an upper-middle-income economy within the next five years.
As part of its recommendations in the Second Round Crops, Livestock and Fisheries Assessment report 2024/25, the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development said all the Rural Development 8.0 schemes are important in achieving Vision 2030 and should be adequately resourced.
“The private sector should be further mobilised and incentivised to invest in village business units to provide value chain financing, off take markets and to provide aggregation, value-addition and beneficiation services,” reads part of the report.
Rural development programmes are transitioning to full-fledged agri-business models that are expected to boost incomes and improve livelihoods.
There are ongoing plans to convert nutrition gardens into VBUs.
Development partners have already established 3 774 nutrition gardens countrywide.
Commercial backing is envisaged to ensure long-term viability.
Integrating small-scale producers into formalised structures is expected to create economies of scale, reduce post-harvest losses and tap into higher-value markets.
“When farmers in a village come together to pool their resources, whether that is labour, seed or knowledge, they can access inputs at a lower cost, negotiate better prices for their produce and share technical expertise,” said Ms Pamela Macheka, who works with rural farming co-operatives in Manicaland province.
“A village business unit gives structure to what were once ad hoc farming groups. It allows members to register as a company, open bank accounts, apply for financing and enter into offtake agreements with processors or exporters.”
Economist Mr Tinevimbo Shava said VBUs, in addition to boosting agricultural productivity, could have a multiplier effect on the economy.
“Through establishing functioning value chains in rural areas, we are not only boosting farm gate prices but also creating opportunities for non-farm employment,” he said.
Mr Shava believes that VBUs could add as much as 15 percent to household disposable income in participating villages.
“That extra income is crucial,” he added, “because it can be reinvested in health, education or small businesses. It also cushions households against the seasonal uncertainties that typically plague rain-fed agriculture.”
There are already success stories in provinces where private partners stepped in to provide input financing and pre-season purchase agreements.
In Mashonaland East province, for instance, a local milling company, Hwaramba Millers, invested in four pilot VBUs last season, where a 10 percent increase in average yields is now expected.
“Those figures speak for themselves,” Mr Shava said.
“When farmers know there is a buyer ready to pay market prices, they are more motivated to adopt improved seeds, fertilisers and good agronomic practices.”
Nutrition remains a central pillar of the VBU model.
Dr Frank Mapaona, a nutritionist based in Harare, underscored the health benefits of organised kitchen and nursery gardens under VBUs.
“Improved access to diverse, nutrient-rich vegetables can dramatically reduce rates of vitamin A deficiency, anaemia and other micronutrient disorders,” said Dr Mapaona.
“For households that once struggled to secure a regular supply of fresh produce, VBUs can ensure that nutritious crops, such as leafy greens, tomatoes and indigenous vegetables, are cultivated systematically and in larger quantities.”
Good nutrition, Dr Mapaona said, had the potential for extending life expectancy in rural areas.
“Malnutrition is a silent killer, but when communities have reliable access to fresh produce, the incidence of stunting in children and maternal malnutrition decline. Over time, this translates into longer, healthier lives and lower public health costs.”
VBUs can integrate school feeding programmes, ensuring that children receive at least one balanced meal each day.
The Presidential Rural Development Programme complements these initiatives by focusing on the infrastructural backbone needed for large-scale year-round cultivation.
The scope of the programme includes drilling a solar-powered borehole in each of Zimbabwe’s 35 000 rural villages and supporting a one-hectare drip-irrigated plot.
A company is then formed to run the VBU as a viable, profitable and sustainable business. As at 31 December 2024, a total of 3 498 boreholes had been drilled across all provinces, with each province receiving at least three rigs to expedite further drilling.
These boreholes not only supply water for irrigation but also open the door to diversified crops, including fruits, spices and off-season vegetables that fetch premium prices in urban markets.
“Reliable water access removes one of the biggest constraints facing smallholder farmers,” says Ms Macheka.
“It is the difference between a single annual harvest and three harvests a year, which can completely transform farm incomes.”
Analysts warn that success of VBUs hinges on careful implementation and strong governance.
The Government says private sector partners will be required to support management training, digital record-keeping and periodic audits.
The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development has proposed tax breaks for companies that finance VBUs, as well as co-investment grants that lower the cost of drilling and solar equipment.
It is envisaged that these measures will unlock capital from agribusiness firms, financial institutions and impact investors seeking sustainable development opportunities.
As the country positions itself to meet Vision 2030, the VBU model represents a tangible step towards more inclusive growth.
Through weaving together infrastructure, finance and community participation, it holds the promise of turning smallholder farming into engines of rural prosperity.
