Online Reporter
Michael Tome-Business Reporter
THE Government is set to implement Statutory Instrument (SI) 87 of 2025 beginning April 1, 2026, compelling grain and oilseed processors to source at least 40 percent of their raw materials from local farmers.
The move is aimed at strengthening domestic agriculture and reducing reliance on imports. Under the new regulations, the threshold will gradually rise to 100 percent by April 2028, eliminating the routine importation of these key agricultural products within two years.
The policy targets companies involved in the milling, stockfeed and food manufacturing sectors, compelling them to prioritise local procurement over imports.
According to the Zimbabwe National Statistics Agency, soyabean, sunflower, cotton seed and crude oil imports rose by 144 percent from US$142 million in 2010 to US$346 million in 2024, with a peak of US$370 million in 2022. The Government has since indicated that the measure is designed to protect local farmers by guaranteeing markets for their produce and ensuring that they have reliable buyers.
According to the Government, the policy is intended to correct market distortions created by opportunistic imports, which often undercut local farmers and weaken incentives for agricultural production.
SI 87 of 2025, issued in September 2025, stipulates that every miller, stockfeed manufacturer and food processor handling grain or oilseed products will have to comply with the new procurement thresholds.
Commodities covered by the legislation include maize, soya beans, sunflower, cotton and related meat value chains, which collectively form the backbone of Zimbabwe’s milling, stockfeed and food manufacturing industries.
For years, many processors have relied heavily on imported grain from countries such as South Africa, Zambia and beyond, often citing price advantages or supply gaps during poor harvest seasons.
If fully implemented, the legislation will be one of the most comprehensive localisation policies in Zimbabwe’s agriculture sector, restructuring how raw materials are sourced across the food production ecosystem.
For local manufacturers, particularly those producing cooking oil, flour, breakfast cereals and stockfeed, the regulation signals a significant shift in the procurement strategy.
Agricultural expert Professor Mandivamba Rukuni said the regulation signals a decisive shift towards building a more locally driven food system, in line with the Government’s broader agricultural transformation agenda.
“The statutory instrument turns a long-running policy debate into a competitive reset, one that can stabilise prices, support farmers and invite new investors into village and township-based agro-industries,” he said.
“It reduces import dependence and cushions consumers from volatile global food prices, guarantees market access for local farmers, encourages higher production and investment and creates a policy environment for rural industrialisation and small miller participation.”
Beyond protecting farmers, the new law also aims to encourage long-term investment in domestic agriculture, promote value chain financing arrangements between processors and farmers, and reduce reliance on imports.
Importantly, the Government has clarified that the SI does not apply to wheat production and trade, easing concerns that the regulation could trigger a rise in bread prices. Imports have historically played a dual role for these businesses, helping bridge supply gaps during poor harvest seasons while also offering lower-cost raw materials compared to local produce. There is need to make sure that the cost of doing business is reduced.
The coming years are, therefore, likely to require stronger partnerships between processors and farmers, expanded contract farming arrangements and adjustments to existing supply chains.
Food Crop Contractors Association (FCCA) chairperson Mr Graeme Murdoch said the group’s members were taking heed of the Government’s directive for industry players to buy at least 40 percent of their raw materials from local producers.
“The FCCA has increased soya bean production from 11 609 hectares in the 2020/2021 season to 30 692 in the 2023/2024 season — a 164 percent increase,” he said.
“Output surged 78 percent from 34 827 tonnes to 62 000 over the same period.
“The FCCA, CBZ Agro-Yield, AFC, NMB and ARDA (Agricultural and Rural Development Authority) are primarily funding commercial soya bean growers, with the Presidential Input Scheme funding small-scale farmers to ensure that we have enough supply of the crop.”
However, the ultimate success of the policy will hinge on the ability of Zimbabwe’s agriculture sector to ramp up production to meet rising industrial demand.
If domestic output increases significantly, the new framework could strengthen farmer incomes, improve value-chain financing and reduce the country’s reliance on imported grain.
As the 2026 implementation deadline approaches, both farmers and processors are expected to begin adjusting their operations to align with what could become a defining policy shift for Zimbabwe’s agro-industrial landscape.
Tinaye Agere