Online Reporter
Prof Mandivamba Rukuni
In a revolutionary and transformative move, the Ministry of Lands Agriculture Fisheries Water and Rural Development has promulgated Statutory Instrument SI 87 of 2025.
By legally requiring local sourcing, protecting contractor investment and opening pathways for rural manufacturing, the Statutory Instrument turns a long-running policy debate into a competitive reset — one that can stabilise prices, support farmers and invite new investors into village- and township-based agro-industries.
This is why this matters right now in the nation’s journey for sustainable development. For years the debate around food security in Zimbabwe has swung between reliance on imports and a desire to strengthen domestic production. SI 87 of 2025 — the Agricultural Marketing Authority (Grain, Oilseed and Products) (Amendment) Regulations (No. 2) — reframes that choice. It does three things that matter for everyday Zimbabweans:
Reduces import dependence and cushions consumers from volatile global food prices.
Guarantees market access for local farmers, encouraging higher production and investment.
Creates a policy environment for rural industrialisation and small miller participation.
Put simply, local sourcing is an effective tool to curb inflation on staple foods because it short-circuits the cost shocks that come with long import chains and currency-driven price swings.
This is also the time for clarity in the law — clear rules, clear timeline. SI 87 introduces binding and staged local sourcing obligations: “import parity price” means the landed import price in Zimbabwe after taking into consideration the cost, freight, insurance and any associated fees and charges; “production parity price” means the local price of grains and oilseeds based on the cost of local production, as determined by the Government on current data.
Crucially, the SI states: No person shall import grain, oilseed and products, except for contractors in instances of need. Contractors — defined as a registered buyer who is a party to a grain or oilseeds production contract with one or more growers — are recognised for their value-chain role and may import shortfalls of their annual requirements. The staged sourcing schedule is firm given that from April 1, 2026, processors must source at least 40 percent of annual requirements locally. From April 1, 2028, processors must source 100 percent of annual requirements locally.
These deadlines provide predictability for farmers, millers and investors to plan investments and manage supply chains. This is a competitive reset opportunity for previously advantaged millers who I am sure will take this in their stride and experience to take the economy to the next stage of local manufacturing, value-add and job creation through labour intensive processing. To those grain millers who have relied on open imports and long-established market positions, the SI is not a punishment — it is what I would call a Competitive Reset Opportunity. It asks established processors to modernise, localise and partner with producers.
Millers who adapt will benefit from: Secure, contracted raw material supplies that reduce input price volatility.
Lower logistics costs and shorter lead times than import-dependent operations.
A growing consumer preference and Government incentives for locally made products.
My reading is that for those who resist change, market forces and the law will shift market share to operators who can meet local sourcing and quality requirements — including SMEs, contract farmers and new investors. The reset rewards investment in supply chains, quality control, storage and processing technology.
I must admit this is the kind of policy shift I have been dreaming about for decades now. I am relieved that I can now see some light at the end of this tunnel in my own lifetime! What this means for small millers, bakers and rural entrepreneurs is something that the rest of Africa will soon emulate. SI 87 opens real market opportunities for SME millers and bakers — especially in rural towns and growth points. To make the most of this, SMEs will need technical and business support. Practical support packages should include:
Milling and processing training (quality control, fortification, hygiene and efficiency).
Access to finance and value‑chain loans tailored to small processors.
Shared access to storage and drying facilities, and to bulk-buying of maize, wheat and oilseeds.
Help with product development, packaging, branding and distribution to township and urban markets.
Market information systems, offtake linkages and contract templates to participate as contractors.
Assistance with meeting standards and certification (food safety, fortification, labelling).
Government ministries, development partners and larger processors can and should coordinate such support so SMEs can scale quickly to meet the 40 percent target in 2026 and the 100 percent target in 2028. The nation has to visualise this journey now — from dependence to self-reliance. A short timeline helps show how policy has evolved:
We had Command Agriculture (2016), with large, state-led input support and central sourcing models.
We are now coming out of Inputs Schemes, targeted subsidies and mechanisation to raise yields.
We are now liberalising the agricultural markets. SI 87/2025) now legally entrenches local sourcing and contractor protections.
Rural Industrialisation is now a living possibility, village and township manufacturing, localised micro-franchises and women-led processing hubs.
Zimbabwe’s recent gains show why the SI is timely. The ZIMLAC 2025 report finds household food security improved from 44 percent in 2020 to 85 percent in 2025, with record traditional grains production in the 2024/2025 season. The government’s AFSRTS emphasises market access and trade development as essential to Vision 2030. Some headline numbers:
Private sector contractors now produce 160 000 MT of wheat and over 245 000 MT of cereals against annual requirements of 360 000 MT wheat and 800 000 MT maize — representing roughly 44 percent and 24 percent respectively.
Value chain financing by the private sector was only 1.75 percent of total financing in 2025/26, but the SI is projected to help grow that to 5–10 percent by 2028.
These figures demonstrate clear upside to be maintained, more contracting, more domestic processing, better capacity utilisation in agro-manufacturing and, ultimately, steadier prices for consumers.
Of course there are some legitimate concerns that need to be addressed in this transition. Some traders and critics worry the SI will restrict trade or unfairly favour certain players.
A few important facts:
The SI recognises contractors and allows limited importation to cover genuine shortfalls, not blanket open imports.
The law is flexible — it allows for calibrated fees or differentials to be set without issuing another SI, making it adaptive to market conditions.
Farmers have legitimate grievances about delayed payments (eg to GMB). The Ministry has signalled pro-farmer measures and commitment to defend land reform gains by ensuring producers get fair access to markets and timely payment.
Farmers have proposed reciprocal measures — such as allowing them to import inputs and certain milling products — to lower costs. These proposals are part of ongoing policy engagement and should be judged on technical and economic merit. The SI does not shut down dialogue; it creates a framework for fairer bargaining.
This for me is a loud wake up call to investors, communities and consumers alike. For investors, the SI creates predictable demand for local raw materials and processing capacity, rural industrial projects, women-led hubs and micro-franchises will need capital, technology and distribution partners.
For communities and consumers, local sourcing stabilises prices and keeps value in Zimbabwe — more jobs, stronger local economies and greater food sovereignty.
For farmers, contracting opportunities lock in buyers, improve yields, improve farm-gate prices, and all this improves access finance.
The market is opening wide; be ready with quality produce and strong business practices for an agriculture-led re-industrialisation of Zimbabwe.
SI 87/2025 is not an end point but a turning point. By legally linking production with domestic processing and by protecting contractors who invest in farmers, it charts a path to more affordable food, fair farmer prices and a revitalised rural industrial economy.
The prize is clear, an agro-industrial Zimbabwe that feeds its people, employs its youth and builds prosperity from the soil up.
