Online Reporter
Martin Kadzere
Zimbabwe’s grain and oilseed processors have committed to developing a comprehensive roadmap to support agriculture, following a high-stakes, closed-door meeting with the Government last week.
The meeting was convened to address escalating friction over Statutory Instrument (SI) 87, which mandates local production, issued under the Agricultural and Marketing Authority (AMA) (Grains, Oilseeds, and Products) Regulations 2025.
While falling short of a full import ban, the instrument introduced significant restrictions on the importation of grain, oilseeds and related products to push the industry towards domestic production.
Under the regulations, whenever the landed import price of a commodity is lower than the Government-set local producer price, importers are mandated to remit the entire price difference into this state fund.
While the Government argues this mechanism is designed to “level the playing field” for Zimbabwean farmers, industry leaders view it as a veiled tax.
They warn that rising raw material costs will inevitably be passed on to consumers.
Multiple sources who attended the meeting said processors had promised to present a formal support plan within 60 days.
The meeting, convened by AMA and facilitated by the independent think tank, Africa Economic Development Strategies (AEDS), featured high-level representation, including Dr Obert Jiri, permanent secretary for Lands, Agriculture, Fisheries, Water and Rural Development.
Other key stakeholders included representatives from AMA, the Grain Marketing Board (GMB), the Agricultural Rural Development Authority (ARDA), grain processors and oil expressers.
The sources said the processors proposed a “Formal Agricultural Financing Plan” to be finalised within two months.
The plan aims to ensure the country meets its raw material requirements while removing the import parity requirement.
In its place, the industry stakeholders proposed a US$10 levy per tonne on all imported white and yellow maize, with the proceeds earmarked for AMA market development programmes.
It was further proposed that SI 87 should be amended to reflect the scrapping of the import parity price mechanism.
While maintaining confidentiality regarding the specific details of the meeting, AMA chief executive Ms Alice Mapfiza said several key discussion points and recommendations would be submitted to the Government.
“We are in a process of dialogue to encourage local industry towards domestic production,” said Ms Mapfiza. “Once these processes are finalised, a formal position will be stated.
“Our role is to provide technical advice backed by facts. It is a role we will continue to play with all stakeholders in the value chain to ensure we achieve the agricultural industry we all desire.
Prof Jiri described the meeting as a constructive step in the quest for national food sovereignty.
He emphasised the importance of local production to reduce costs and ensure national food security.
“We need to localise our production,” he said.
“The challenge that we are facing at the moment, apart from climate change, apart from COVID-19, logistical challenges, apart from conflict-induced challenges, is really how we localise our production, how can we make our production cheaper; reducing the cost of production, particularly driven by the high cost of inputs.
“This was really a meeting of minds to say that let us focus on food sovereignty and our ability to produce our own food as a country.
“It’s very exciting that even SI 87, which emphasizes local production and encourages genuine importation of grain, is also receiving widespread acceptance across the farming sector.”
AEDS executive director, Professor Gift Mugano, confirmed the meeting, describing it as productive, though he declined to disclose specific details due to the private nature of the talks.
Industry representatives described the meeting as “highly productive”, noting that both sides understood the risks involved.
Despite these concerns, stakeholders were in full agreement on one key goal: the need for Zimbabwe to achieve self-sufficiency in agro-raw materials.
“Levies are inflationary by nature,” said one industry player. “We argued that there are alternative ways to raise capital without triggering price hikes. We are pleased the Government agreed with this perspective, and we are now working on a comprehensive plan.”
Seeking food sovereignty
Another attendee noted that the engagement did not focus on a total reversal of the SI, but rather on fine-tuning it to achieve national food security.
Stakeholders noted that lessons learned from COVID-19 supply chain disruptions, further amplified by volatile “geopolitics” affecting global markets, have reinforced the urgent need to boost local production and ensure food sovereignty.
“The meeting served as a necessary reality check,” the source added. “While SI 87 is a bold move toward localising supply chains, there are legitimate fears that it could unintentionally cause food insecurity and trigger a spike in inflation.
“The industry’s warning is clear; without careful adjustment, this food security policy could turn into an inflationary pressure cooker,” he said.
Lack of consultation
A recurring theme during the session was the perceived lack of prior consultation.
Industry representatives argued that had they been engaged earlier, more sustainable “win-win” mechanisms for supporting farmers, such as direct investment and credit facilities, could have been established without relying on heavy taxation.
Instead of import levies, businesses contended that the focus should be on lowering the cost of local production to make Zimbabwean crops naturally competitive on the global market.
