Online Reporter
Edgar Vhera Agriculture Specialist Writer
THE Zimbabwe Mercantile Exchange (ZMX) and the Grain Millers Association of Zimbabwe (GMAZ) have signed a five-year partnership arrangement to provide farmers with a ready market for their produce.
The memorandum of understanding (MoU) on aligning structured trade systems with national food value chains was signed in Harare today.
The deal is aimed at creating a reliable market-based system for buyers and sellers with millers accessing grain through forward commitments while farmers and aggregators gain the ability to raise funding before actual sale.
ZMX chief executive, Mr Collens Tapfumaneyi a minium of 50 kilogramme of grain was required for one to participate.
“A communal farmer in any location can deposit his/her 50kgbag of grain in any certified warehouse.
“The grain is graded and given a warehouse receipt, a financial instrument they can use to get cash or inputs,” he said.
GMAZ chairman, Mr Tafadzwa Musarara said the partnership was meant to ensure millers access their grain locally.
“Cabinet saw it fit to close the country’s borders for grain imports and mandated us to buy from local farmers first.
“We would like to assure all our farmers that we are ready to buy their grain at market determined prices,” Mr Musarara said.
This is in fulfilment of the Government’s announced marketing and pricing system to be used in the sale of crops this season in order to achieve both food and nutrition security and macroeconomic stability.
Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka said the self-financed farmers will sell to the best advantage on the market or to the Grain Marketing Board (GMB), with the latter providing commercial warehouse receipt services to all players.
“The Zimbabwe Mercantile Exchange (ZMX) will provide a central warehouse receipt system and a spot market trading platform for agricultural commodities,” he said.
The Ministry of Finance, Economic Development and Investment Promotion’s 2025 Budget Strategy Paper revealed that Government would promote the use of the ZMX in the marketing of agriculture produce to enhance farmer income and reduce post-harvest loses.
The GMB will be focusing only on procuring grain for the strategic grain reserve (SGR), with the rest of the produce being sold to private players through the ZMX.
Broadening market options for farmers reduces fiscal burden and over-reliance on the GMB.
This will allow market access for farmers, price discovery and convenient trading of agricultural commodities.
The Reserve Bank of Zimbabwe (RBZ) enhanced the use of warehouse receipts as collateral security by granting liquid asset status.
