Government assures farmers of 30‑day payment period for GMB deliveries

THE Government has assured farmers that the Grain Marketing Board (GMB) will pay for grain and oilseed deliveries within 30 days of delivery, beginning this season.

The grain marketing season starts on April 1.

Deputy Chief Secretary to the President and Cabinet, Dr Willard Manungo, said yesterday that the GMB was clearing all outstanding payments owed to farmers.

“The GMB is clearing all outstanding payments owed to farmers. As articulated by the Government under the National Development Strategy 2 (NDS 2), payments for future deliveries to the GMB will be honoured within 30 days of delivery,” he said.

The Government’s role in agriculture markets through the GMB will remain limited to the purchase and management of the strategic grain reserve, as well as providing storage facilities for the Zimbabwe Mercantile Exchange (ZMX).

According to the 2026 National Budget, the Government aims to procure a strategic grain reserve of about 500 000 tonnes, increasing stock levels to more than 1,5 million tonnes over the medium term.

GMB has encouraged farmers and processors to take advantage of its grain trade and storage model, which includes third party storage leveraging its existing silo capacity of 862 000 tonnes, with an additional 672 000 tonnes under construction.

The parastatal has lowered storage fees to encourage grain processor participation. Contractors can also allow their farmers to deliver grain to the nearest GMB depot, reducing transport costs and minimising side marketing.

Farmers and stakeholders in the agricultural sector have long expressed concern over delayed payments for grain delivered to the GMB.

Members of the Zimbabwe Agricultural Think Tank (Zatt) social group believe that adequate funding for the GMB will stimulate significant growth in the agricultural economy.

Zatt secretary general, Mr Taruvinga Magwiroto, said that after farmers receive inputs, the GMB must complete the value chain by paying promptly.

“If we want to achieve ‘food security every day everywhere,’ and not just talk about it, we need to fix GMB.

“We need to capacitate GMB so that it becomes once again the viable market for the smallholder farmers in Nyajena, Dotito, Magunje, Buhera and Nembudziya, among others,” he said.

Mr Magwiroto highlighted the importance of examining the conditions required for national food security, the people who drive it, and the policies needed to empower them.

Agricultural expert Dr Reneth Mano said the ministries of Lands, Agriculture, Fisheries, Water and Rural Development, and Finance, Economic Development and Investment Promotion must take full responsibility for ensuring farmers are paid timeously.

“When farmers fail to repay their loans on time, their domestic credit ratings are irreversibly undermined and future capacity to access commercial loans from banks is compromised,” he said.

Dr Mano added that Treasury should consider compounding any outstanding balances owed to farmers using prevailing monthly lending rates applied by commercial banks, recognising the time value of money.

“To restore the reputation of GMB as farmers’ preferred market, GMB must restrict itself to buying grain strictly when it has the cash in its trading account to pay cash within seven to 14 days of delivery,” he said.

He said that when Treasury is slow to release funds, GMB must adopt internal business measures to protect its reputation.

“One strategy for managing such inevitable cash flow challenges is for the board to take full advantage of the strategic business partnership with Zimbabwe Mercantile Exchange (ZMX) warehouse receipt system and daily spot market auction.

“The ZMX marketing institution brings new financing options that GMB can utilise to ensure timely cash payment for all grains that farmers deliver to GMB,” Dr Mano said.

Under the Agriculture Food Systems and Rural Transformation Strategy 2 (AFSRTS 2) 2026–30, GMB is transforming into the nation’s grain supply chain manager, ensuring timely input distribution, managing local strategic grain reserves during surplus years, and acting as a competitive buyer for national reserves.

The board will provide state of the art logistics, storage and warehousing services for both Government and the private sector.

“It will use its extensive depot network for commercial agri-services for the benefit of rural farmers and stabilising food prices through appropriate market intervention.

“GMB’s massive real estate must be sweated to generate cash flow required to energise the transformation of GMB into a full commercial entity, weaned from fiscus funding by 2027,” read AFSRTS 2.