Online Reporter
Edgar Vhera, Specialist Writer – Agribusiness
The Government has set aside ZiG129 million to spearhead the development of rural areas through increased agricultural production and the value addition of produce to enhance farmers’ incomes.
Presenting the 2026 National Budget recently, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the funds were meant to stimulate the transition by farmers from subsistence to commercial activities.
“Government is setting aside ZiG128,8 million to support rural development interventions anchored on value addition and beneficiation of agricultural produce to transform subsistence farming into viable farming activities,” he said.
To stem rural-to-urban migration in search of jobs, the Government crafted Rural Development 8.0 in 2024 with the objective of creating employment in rural areas.
Rural Development 8.0 is a collective of outcome-based Presidential interventions in the agriculture sector to promote rural industrialisation leading to rural development, which will catalyse economic development towards the attainment of the Vision 2030 objective of a prosperous and empowered upper middle-income society.
It has the following interventions — Presidential Climate-Proofed Input Scheme,Presidential Cotton Scheme, Presidential Rural Development Programme,Presidential Blitz Tick Grease Scheme, Presidential Community Fisheries Scheme,Presidential Poultry Scheme, Presidential Goat Scheme and Vision 2030 Accelerator Model (V30 Accelerator).Prof Ncube said in 2026, Government will continue to establish Village Business Units (VBUs) across the country.
“The initiative seeks to create jobs, boost incomes, and reduce poverty through value addition and entrepreneurship in rural communities.
“Ultimately, this will contribute to broader economic growth by diversifying income sources and enhancing the productivity of the agriculture sector,” he said. VBUs are registered rural development enterprises meant to boost economic activity and improve the livelihoods in rural communities.
The Agricultural and Rural Development Authority (Arda) is set to establish 35 000 VBUs, 9 600 School Business Units (SBUs) and 450 irrigation schemes across the country. Government is targeting to establish 35 000 one-hectare self-sustaining Village Business Units, supported by solar-powered boreholes to buttress horticultural development in the rural communities.
Arda oversees the agronomy and business management side of the value chain, with the Zimbabwe National Water Authority (Zinwa) and the Department of Irrigation responsible for irrigation infrastructure development, and AFC for financing. AMA is mandated with marketing of produce while the Agricultural and Rural Development Advisory Services (Ardas) is seized with training and extension activities.
Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary, Professor Obert Jiri, said VBUs served as key centres of rural production and economic empowerment.
“Beyond transforming villages, they create entrepreneurial opportunities for communities, enabling them to participate effectively in both national and international value chains,” he said.
Arda chief executive, Mr Tinotenda Mhiko, said the V30 Accelerator Model was a game-changing model, where 460 irrigation schemes under 26 000 hectares across eight provinces and the VBUs dotted countrywide are registered as companies under the Companies and Other Entities Act so that they operate as professional agricultural entities.
“This approach transforms smallholder farmers from subsistence production to empowered economic actors, giving rural communities a stake in their own growth.
“It not only unlocks strong balance sheets but also opens access to both capital expenditure and working capital for these schemes,” he said.
The V30 model reframes traditional subsistence farming into dynamic, commercially-oriented enterprises.
“Smallholder farmers are equipped with solar-powered irrigation, professional business-management training, and structured shareholder frameworks, ensuring that rural communities become active investors in their own economic destinies.
“Under this approach, irrigation schemes function as community enterprises with farmers working as employees during the season and receiving dividends from net profits at harvesting time, thereby cultivating a sense of ownership, accountability and entrepreneurial thinking,” he added.
Bongani Ndlovu