Online Reporter
Word From The Market
Tina Nleya
ZIMBABWE’S long-term economic resilience will increasingly depend on the country’s ability to produce what it consumes and process what it produces locally.
In an era marked by global supply chain disruptions, geopolitical tensions, exchange rate volatility and rising logistics costs, strengthening domestic procurement systems is no longer merely an agricultural policy objective; it is an economic necessity.
For agro-based economies such as Zimbabwe, local procurement serves as a strategic instrument for industrial growth, food security, rural development, employment creation and foreign currency preservation.
Countries that have successfully transformed their agriculture sectors have done so by deliberately strengthening domestic value chains and creating stable markets for local producers.
Recent statistics from the Agricultural Marketing Authority (AMA) demonstrate both the opportunities and vulnerabilities within Zimbabwe’s agricultural economy.
According to the latest AMA market update report, maize grain imports between April 2025 and March 2026 totalled 1 146 095 tonnes valued at approximately US$401 million.
Although this represented a 35.6 percent decline from the previous year due to improved domestic harvests and supportive Government policies, the import bill remains substantial.
Similarly, wheat imports increased significantly over the past three season. They rose from 258 151 tonnes in the 2022/2023 season to over 380 951 tonnes in the 2024/2025 season, representing an increase of approximately 47.26 percent.
At the same time, total wheat consumption has continued to rise; it increased from 489 402 tonnes to over 605 183 tonnes during the same period.
The soya bean sector presents another critical case.
Between April 2025 and March 2026, Zimbabwe imported 236 670 tonnes of soya beans valued at over US$129 million, reflecting a 112.6 percent increase in import volumes compared to the previous year.
These figures underscore the growing pressure being placed on the country’s foreign currency reserves and highlight the urgent need for increased domestic production and local procurement.
From an agricultural economics perspective, excessive reliance on imports creates multiple structural challenges.
First, it weakens domestic value chains by reducing incentives for local production. Second, it limits market opportunities for farmers, particularly smallholder producers.
Third, it contributes to foreign currency leakages that constrain broader macroeconomic stability.
Every tonne of grain, oilseed or horticultural produce imported despite local production potential represents forgone income for rural households and lost opportunities for agro-industrial expansion.
Globally, several countries have successfully leveraged local procurement policies to stimulate agricultural transformation and industrialisation.
Brazil offers one of the most widely cited examples.
Through its Food Acquisition Programme and National School Feeding Programme, the Brazilian government deliberately prioritised procurement from local smallholder farmers.
Under the programme, at least 30 percent of food purchased for public schools must come directly from family farmers.
This policy significantly expanded rural incomes, improved food security, strengthened local supply chains and stimulated domestic agro-processing industries.
The approach also encouraged financial institutions to increase agricultural lending due to guaranteed markets.
India similarly utilised local procurement systems to support domestic grain production through its Minimum Support Price programme.
By guaranteeing markets for wheat and rice producers, India was able to improve food self-sufficiency while building strategic grain reserves.
The policy not only reduced vulnerability to global food price shocks but also stimulated investments in irrigation, mechanisation and input supply systems.
Closer to home, Zambia has consistently promoted local maize procurement through the Food Reserve Agency, which purchases grain from local farmers for strategic reserves and domestic milling industries.
This approach has helped stabilise producer prices and encourage maize production growth over time.
According to the AMA market update report, Zambia is projected to maintain significant maize surpluses due to continued bumper harvests and substantial carryover stocks.
South Africa also demonstrates the importance of integrated local value chains.
While the country imports certain commodities such as wheat, its maize industry remains strongly supported by domestic production systems, commodity exchanges, contract farming arrangements and agro-processing industries.
The AMA report indicates that wholesale maize prices in South Africa remained significantly lower than year-earlier levels due to ample domestic supplies following above-average harvests.
This highlights how strong local production systems contribute to price stability and food affordability.
Zimbabwe possesses similar potential.
The country has favourable agro-ecological regions, an expanding irrigation base, improving mechanisation programmes and a growing network of organised farmer structures. Encouragingly, marketed maize volumes between April and May 2026 increased by 47 percent compared to the same period last year, while soya bean deliveries rose by 35 percent.
These trends indicate that farmers are responding positively to improved production conditions and market opportunities.
The rapid growth of export-oriented crops further demonstrates Zimbabwe’s agricultural competitiveness when supported adequately.
Sesame seed exports surged by approximately188 percent in volume and 152 percent in value in 2025.
Avocado exports also increased by 166.5 percent during the first quarter of 2026 compared to the same period last year.
Such growth confirms that Zimbabwean agriculture can compete regionally and internationally when strong value chains, market linkages and supportive regulatory systems are in place.
The development of village business units (VBUs) is another positive step towards strengthening local procurement systems.
AMA-facilitated market linkages have already connected VBUs in several provinces to formal off-takers such as supermarkets, schools, agro-processors and commodity brokers.
These structured markets improve farmer incomes while ensuring consistent supply for industry.
However, local procurement cannot succeed through policy statements alone.
Sustainable import substitution requires coordinated investments in irrigation infrastructure, affordable financing, mechanisation, contract farming systems, extension support, storage facilities and transport logistics.
Industry must also play a deliberate role by prioritising local sourcing before resorting to imports.
Timely payments to farmers remain particularly important.
Farmers are more likely to expand production when markets are predictable and payments are reliable.
Similarly, agro-processors and millers benefit when domestic supply chains are stable, reducing exposure to international price volatility and freight disruptions.
The broader macroeconomic benefits of local procurement are equally significant.
Strong domestic agricultural value chains create employment across production, transportation, processing, packaging and retail sectors.
Increased local sourcing also stimulates rural industrialisation and reduces urban migration pressures by creating viable economic opportunities within farming communities.
Import substitution should, therefore, not be viewed as isolationism or an anti-trade policy.
Rather, it is about strategically developing domestic productive capacity in areas where Zimbabwe possesses a comparative advantage.
International trade remains important, particularly for export growth and specialised commodities, but sustainable economies first build strong domestic production systems before relying excessively on imports.
Zimbabwe’s path towards agricultural industrialisation will ultimately depend on the strength of linkages between farmers and industry.
Local procurement represents the bridge between agricultural production and industrial transformation.
As global economic uncertainty continues to intensify, countries with resilient domestic value chains will be better positioned to safeguard food systems, stabilise prices, preserve foreign currency and sustain economic growth.
The future of Zimbabwean agriculture, therefore, lies not only in producing more, but in deliberately building markets that prioritise Zimbabwean farmers, Zimbabwean industries and Zimbabwean value chains.
Tina Nleya is AMA’s marketing and public relations manager. She can be contacted on email: [email protected]. Word From The Market is a column produced by AMA to promote market-driven production.
