Online Reporter
Zvamaida Murwira, Senior Zimpapers Writer
THE Mutapa Investment Fund (MIF) has identified its Agriculture and Industrials Cluster as a central driver of the country’s industrialisation agenda, with strategic investments planned across key value chains to stimulate economic growth and self-sufficiency.
In its annual report that was published recently, the MIF said focus will be on high-impact sectors, including manufacturing, food processing, seed development and cement production, investments which are aligned with national goals to reduce imports, enhance export competitiveness and create employment through value addition.
This comes as the country’s seed production sector managed to register a 10 percent increase in output despite the effects of climate change and reduced crop establishment costs by 50 percent through the use of science-based modern technologies and initiatives.
Seed production is expected to give impetus to the Government’s Pfumvudza/Intwasa programme, one of the Second Republic’s Agriculture and Food Systems Transformation Strategy, a national plan to overhaul food production, distribution and consumption for better nutrition, sustainability, resilience and economic benefit.
The cluster represented by the Agriculture Rural Development Authority managed to roll out a US$500 000 revolving financing facility to enhance soil analysis.
“The Seed Production and Processing Sub Cluster, represented by Arda Seeds, delivered one of the strongest performances in the cluster. Despite adverse El Niño effects, the company increased production by 10,5 percent to 7 177 tonnes and improved productivity through science-based agronomic practices and soil amelioration technologies,” reads the report.
“Its regenerative agriculture initiatives reduced crop establishment costs by nearly 50 percent, while diversification efforts — including new drought-tolerant seed varieties, export market entry and contract grower expansion — significantly strengthened revenue streams.”
There was also the use of smart technology by Arda, where it unveiled a revolving fund to enhance agricultural output.
“Arda Seeds also implemented Smart technologies in contracting, monitoring and outreach, rolled out a $500 000 revolving financing facility and established partnerships that enhanced soil analysis capacity and supported labour and training initiatives. The Fund continues to mobilise capital for seed multiplication and working capital support, with plans to deepen synergies with Cottco and other cluster entities in 2025,” reads the report.
It was noted that the agriculture and industrial sectors showed resilience despite challenges.
“The Agriculture and Industrials Cluster demonstrated strong resilience and strategic adaptability in 2024, achieving notable operational progress despite structural challenges across several entities. Continued investments in governance, technology, operational efficiency and targeted restructuring have positioned the cluster for sustained long-term growth,” read the report.
“Looking ahead, the cluster is primed to accelerate industrialisation and support Zimbabwe’s Vision 2030 objectives through robust prospects in fertiliser manufacturing, food processing, seed development and cement manufacturing.
Decisive interventions on underperforming assets will further unlock value and enhance competitiveness.”
The cluster aims to achieve import substitution to save the much-needed foreign currency.
“Aligned with the National Development Strategy 2 (NDS2), the cluster is prioritising import substitution by scaling local production of key inputs such as fertilisers, seeds and cement, reducing dependency on imports, strengthening supply chains and fostering self-sufficiency. These efforts will not only bolster national food security but also drive employment creation, stimulate local industries, and contribute meaningfully to economic transformation,” said the report.
The Fund intends to review the business model of the food processing cluster due to some losses incurred in some of the entities.
“The Food Processing sub-cluster operated in a demanding environment shaped by drought-driven raw material shortages, VAT status changes, and persistent pricing distortions in formal retail. Silo Food Industries continued to incur losses due to insufficient milling capacity, costly toll milling, high distribution expenses, and slow debtor payments — particularly from public entities — although stockfeed volumes improved following a Fund-arranged working capital facility,” reads the report.
“A strategic review of the business model is planned for 2025, alongside the installation of a new milling plant at Cleveland and discussions on a potential equity partnership. Surface Wilmar maintained its market leadership through strong vertical integration, regional market penetration, and solid relationships with local farmers.”
It said shareholders were already in discussions meant to unlock a new growth trajectory.
“Shareholders were in advanced Major and Acquisitions discussions aimed at unlocking new growth pathways. In agro-industrial packaging, Zimbabwe Grain Bag recorded losses despite rising demand for sustainable packaging, while Kneebowe continued to operate below capacity due to insufficient working capital and inconsistent off-take, prompting ongoing discussions around an equity infusion,” reads the report in part.
