Zim gazettes law to localise grain, oilseed procurement

Business Reporter

ZIMBABWE has gazetted new regulations that establish a progressive schedule for the grain and edible oil processing sectors to transition away from importing their raw materials and rely exclusively on local procurement.

The Agricultural Marketing Authority (Grain, Oilseed and Products) (Amendment) Regulations, 2025 (No. 2), which came into effect last Friday, mark a major policy shift with immediate and long-term implications for the nation’s food industry.

According to the regulations issued by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Dr Anxious Masuka, imports of grain, oilseed, and related products are now strictly limited to contractors in “instances of need.”

Starting April 1, 2026, processors are required to source at least 40 percent of their annual grain and oilseed requirements from local producers.

Similarly, effective April 1, 2028, the local sourcing mandate will jump to 100 percent, at which point processors will be prohibited from importing these commodities under all circumstances.

A new pricing mechanism has also been introduced.

The regulations stipulate that in any instance where the landed import parity price is lower than the local production parity price, the difference shall be deposited into the Agricultural Revolving Fund.

Import parity price, according to the regulations, refers to the landed import price in Zimbabwe after considering the cost, freight, insurance, and any associated fees.

Production parity price means the local price of grains and oilseeds as determined by the Government.

This is designed to ensure local farmers remain competitive and that a portion of the savings from cheaper imports is reinvested into the agricultural sector.

The move comes at a time when Zimbabwe’s agricultural sector is showing signs of recovery.

A recent food security report, published in July, noted an above-average harvest, with staple commodities widely available and prices remaining stable.

The new regulations are designed to capitalise on this positive momentum and address long-standing challenges of food security.