Online Reporter
Nelson Gahadza, Zimpapers Business Hub
The Horticultural Development Council (HDC) of Zimbabwe has proposed several policy proposals to be included in the upcoming mid-term budget review to help the country reach its potential to become a US$2 billion horticulture export powerhouse.
A mid-term budget review assesses economic performance at the halfway stage of the year, summarising how the fiscal policy is performing, the trajectory in revenue collection and the expenditure patterns of the Government.
The responsible minister can make adjustments where necessary to realise the fiscal targets and steer the economy in the right direction.
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the Treasury was finalising the 2025 Mid-term Budget review statement, but would not disclose the timeline for its presentation.
HDC, focused on promoting and representing the country’s export horticulture, said that with the right policy support, the industry could reach its potential.
“By dedicating zones for horticulture, we can attract increased local and foreign investment in farming, processing and exports.
“However, the current 70:30 retention eats into earnings when producers need more of their hard-earned dollars to stay competitive and grow,” HDC said in a post on its X account.
HDC said infrastructure development is also key for the sector, as better roads and upgraded border posts are essential to get fresh produce to markets faster and in good condition.
On the ease of doing business, HDC noted that at the moment, exporters deal with many overlapping fees and inspections.
“A single-window export system could cut red tape, lower costs, and speed things up, and National Plant Protection Organisation (NPPO) of Zimbabwe (ZW) inspections should be part of this,” HDC said.
HDC said blueberry farmers could not claim back value-added tax (VAT) because they were listed as VAT-exempt instead of being zero-rated.
“Changing this would reduce costs and support one of our fastest-growing export crops,” the council said.
The council also highlighted that farm workers had fallen into the income tax bracket.
“We urge the minister to raise the minimum taxable income threshold to give farm workers more take-home pay, ease their cost of living, and incentivise labour across the sector,” HDC said.
The council also proposed that horticulture should be classified as a priority sector for growers to access lower electricity tariffs. It noted that power costs are a big chunk of the budget, especially for cold chains.
HDC recently said the country’s horticulture sector was poised for increased production volumes in 2025, driven by new plantings and orchards coming into maturity, particularly in high-value crops that include citrus and blueberries.
According to ZimTrade, horticulture exports raked in over US$120 million in 2023, but stakeholders say the sector could exceed US$500 million annually with the right financing and infrastructure.
The Government has since prioritised horticulture under the Horticulture Recovery and Growth Plan (HRGP), which seeks to attract capital, improve value addition and strengthen cold-chain logistics for exports.
