Nqobile Bhebhe, Zimpapers Business Hub
THE Government is moving to strengthen Zimbabwe’s drought response strategy through insurance arrangements that will provide financial support to vulnerable households during dry spells, while simultaneously building grain reserves to cushion citizens against climate-related food shortages.
Finance Minister Professor Mthuli Ncube said the proposed insurance cover would complement grain acquisitions and budgetary provisions aimed at ensuring food security amid the El Niño-induced drought threat.
Speaking on the sidelines of the ongoing 2027 Pre-Budget Seminar in Bulawayo on Wednesday, Prof Ncube said the Government was pursuing several interventions to protect vulnerable communities, including building strategic grain stocks and setting aside resources to meet future food requirements.
“We are also going to buy some insurance, which we will pay once the drought occurs and then we can distribute that to vulnerable citizens and households as cash transfers and so forth,” the minister said.
The proposed insurance arrangements will provide an additional layer of protection against drought-related risks, allowing the Government to mobilise financial support for affected households when specified conditions for payouts are met.
The approach would complement conventional food assistance by providing cash transfers to vulnerable families, enabling them to meet immediate needs during periods of reduced agricultural production and food shortages.
Prof Ncube said the Government was targeting grain stocks of 600 000 metric tonnes to strengthen its capacity to respond to food insecurity and protect citizens whose livelihoods are threatened by drought.
“We support the vulnerable because of this El Niño phenomenon in terms of our grain acquisition.
“We are building our grain stocks to 600 000 metric tons of grain to support our vulnerable citizens because of the drought,” he said.
The Treasury chief said the grain acquisition programme was progressing, with stocks approaching half of the targeted volume.
“So we are doing that and as I speak we are close to halfway through and we’ll keep going,” he said.
The target comes as the Government seeks to strengthen national food security through strategic grain reserves and financial mechanisms that can cushion the economy and households against climate-related shocks.
Beyond current grain purchases, Prof Ncube said the Government was making provisions in the current and next year’s budgets to create a financial cushion for acquiring food supplies whenever the need arises.
“Secondly, we also have a bit of a back pocket from this budget but also part of next year’s budget, to build again a cushion that will be utilised for acquisition of any food requirements for our citizens, but also part of the support will go towards the program,” he said.
The planned insurance cover signals a move towards incorporating risk-transfer mechanisms into the country’s broader drought-response strategy, alongside conventional budgetary allocations and physical grain reserves.
Insurance can help transfer some of the financial risks associated with drought from the Government to insurers, potentially providing access to funds when the insured risk occurs.
The effectiveness of such arrangements will depend on the policy terms, the conditions that trigger the insurance payouts and the speed with which compensation reaches affected communities.
The proposed arrangements indicate a proactive stance in planning for climate-related expenditure before emergencies arise, rather than relying exclusively on supplementary allocations after a drought has affected agricultural output and household incomes.
The insurance component could help the Government to strengthen its capacity to respond to food emergencies while maintaining support for vulnerable citizens.
Prof Ncube said the interventions were intended to ensure that households facing potential hardship were not left without assistance.
“So, we are doing quite a bit in terms of supporting potentially vulnerable families,” he said.
The measures form part of the broader fiscal considerations under discussion at the pre-budget seminar, where Government and stakeholders are examining spending priorities for 2027 amid competing demands on public resources.
With drought preparedness requiring both immediate food supplies and financing for future emergencies, the combination of grain reserves, budgetary cushions and insurance could provide the Government with additional tools to manage food-security risks and protect vulnerable households.
