More banks line up to support ZMX warehouse receipt system

Zimbabwe Mercantile Exchange (ZMX)

THE Zimbabwe Mercantile Exchange (ZMX) says more banks are lining up to support its warehouse receipt system, a development expected to unlock liquidity for farmers and accelerate growth in the country’s structured agricultural markets.

ZMX chief executive Mr Collins Tapfumaneyi said three banks have already signed onto the platform, with at least three more expected to come on board in the coming months, signalling growing confidence from the financial sector.

“We have already signed up three banks, CBZ, Nedbank and Ecobank, and we expect that in the next few months, the majority of the banks will be on board,” he said in an interview. We have had quite a good run so far, although it is still developing. It has been very limited in the sense that we did not have sufficient liquidity, but we are now starting to see very strong support from the banks.”

Mr Tapfumaneyi said bank participation was critical to the success of the warehouse receipt system, particularly during periods of high agricultural output when farmers require flexible and timely access to financing.

Under the system, farmers deposit commodities in certified warehouses and receive a tradable warehouse receipt, which can be pledged as collateral for loans or sold on the market.

Mr Tapfumaneyi said the model becomes especially effective when there is an oversupply of produce, allowing farmers to avoid selling immediately at unfavourable prices.

“If we have a good supply, that supply cannot be taken up all at the same time. That excess, when converted into warehouse receipts, gives farmers a chance to have liquidity against that,” he said.

Last year, the Reserve Bank of Zimbabwe (RBZ) conferred liquid asset status on warehouse receipt instruments, a move that significantly enhanced their attractiveness within the financial system.

The instruments are now recognised as assets that can be readily converted into cash, improving their acceptability among lenders and widening access to credit for farmers.

According to Mr Tapfumaneyi, the designation delivers broad benefits, including improved financial flexibility and more effective price management across agricultural value chains.

ZMX has also made notable progress in operationalising its digital platform, enabling spot market trading and warehouse receipts to support more efficient agricultural marketing.

As at early 2026, the platform supports trading in various commodities, including maize, soya beans, wheat and sugar beans, and is heavily involved in the 2026 tobacco season, strengthening price discovery for producers.

The ZMX 2026 summer marketing season officially commenced on Wednesday, with the exchange hosting a maize and soya bean auction to mark a new phase in agricultural marketing.

The auction launch in Harare combined online and physical participation and was held under the theme: “Building Transparent Markets for a Prosperous Agricultural Future.”

This development comes as farmers in different parts of the country have begun harvesting early planted maize and traditional grains, although harvesting has been delayed in some areas due to ongoing rains.

Representing the Permanent Secretary for Lands, Agriculture, Fisheries, Water and Rural Development, Professor Obert Jiri, at the launch, the ministry’s chief director for business development, markets and trade, Mr Clement Bwenje, said the event marked the formal start of the 2025/26 summer crop marketing season.