Online Reporter
Business Reporter
Zimbabwe’s horticulture sector is demonstrating significant progress in expanding its reach into new international markets, particularly China, while simultaneously grappling with persistent infrastructure deficits and financial constraints. The recent signing of an avocado export protocol with China marks a major milestone, with the Horticultural Development Council (HDC) reporting the completion of virtual inspections of fumigation facilities.
“The sector looks forward to entering the Chinese market, with the first shipment expected this year.”
Furthermore, efforts to access the Chinese market for blueberries are also advancing, with the National Plant Protection Organisation submitting a crucial pest risk analysis response to Chinese customs.
Parallel negotiations are underway to secure market access to India for key crops including avocados, citrus, and blueberries, although progress has been slower in this regard.
These advancements underscore the sector’s commitment to diversifying its export destinations and capitalising on the growing global demand for high-quality horticultural produce.
However, HDC says high borrowing costs and limited market access to China and India are weighing on the industry blueberry export industry.
In terms of specific crop developments, the Export Produce Growers Association of Zimbabwe projects a robust pea export volume of 4,800 tonnes. The Zimbabwe Avocado Growers Association anticipates exporting around 5,000 tonnes, maintaining optimism about the newly secured Chinese market despite acknowledging a potentially tougher 2025 due to natural production cycles and weather conditions. The blueberry sector is particularly buoyant, with the Zimbabwe Berry Growers Association forecasting a substantial surge in exports to 10,000 tonnes in 2025. Zimbabwe’s Coffee Commodity Association highlights the premium quality of its Arabica coffee, expecting production to stabilize following drought-affected yields in 2024, fuelled by increasing international export interest.
The Citrus Growers Association of Zimbabwe anticipates improved quality in its lemon exports as the season progresses. The macadamia sector reports stable export volumes, predominantly destined for international markets.
These production updates paint a picture of a sector with considerable potential and increasing global market integration.
Despite these positive developments in production and market access, Zimbabwean horticultural exporters are facing a confluence of challenges that threaten to impede further growth and sustainability. A primary concern is the current 90-day mandatory acquittal period for export proceeds, which the HDC has formally appealed to the Reserve Bank of Zimbabwe (RBZ) to extend to 180 days.
This short window is creating severe financial pressure on exporters whose international buyers often have longer payment cycles, hindering their ability to make timely payments to local producers.
“The current 90-day acquittal window for export proceeds is placing exporters under severe financial pressure due to delayed payment cycles.
“HDC has formally requested an extension of the period to at least 180 days to better align with export operational realities and ensure timely payments to producers,” said HDC.
Beyond financial constraints, the sector continues to be significantly hampered by unreliable power supply and the deteriorating state of road infrastructure, both of which impact production efficiency and increase operational costs.
The recent departure of KLM Royal Dutch Airlines from Zimbabwe in March further exacerbates logistical challenges, highlighting the urgent need for policies that boost production volumes to strengthen Zimbabwe’s negotiating power for increasingly scarce freight capacity.
Analysis suggests potential increases in air freight rates due to constrained global aircraft supply, a situation already prompting South African carriers to seek rate hikes for Zimbabwean cargo.
Access to working capital remains a critical hurdle for producers seeking expansion, and recent changes in compulsory liquidation policies concerning foreign currency retention have introduced unwelcome uncertainty.
The HDC is actively engaging the RBZ to advocate for policy adjustments that better serve the horticulture sector’s needs. Furthermore, the sector is grappling with ongoing phytosanitary issues, such as False Codling Moth in chillies, which require consistent management to maintain export quality. The tea sector is facing headwinds due to a price decline caused by Kenyan oversupply, compounded by domestic issues like power outages, poor roads, and labour shortages.
High borrowing costs and policy inconsistencies also continue to constrain growth in the blueberry sector, despite its strong export projections. The citrus sector, while seeing fair market prices, faces challenges with smaller fruit returns being squeezed by high freight costs and persistent power disruptions. While improved access to Durban port is a positive development, Beira port remains problematic for logistics.
In response to these challenges, the HDC is actively advocating for a Value Added Tax (VAT) waiver on solar equipment to encourage investment in off-grid energy solutions. Discussions with relevant stakeholders are also underway to identify and implement long-term infrastructure improvements.
The HDC is also collaborating with the Standards Association of Zimbabwe to develop draft standards for various value chains to enhance the competitiveness of Zimbabwean produce. Moreover, the HDC has initiated discussions with the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development to collaboratively address the sector’s potential and challenges.
leeroy