Zimbabwe's import substitution strategy is expected to gain fresh momentum in the 2025/26 agricultural season following the implementation of Statutory Instrument 87 of 2025, which mandates all processing industries to procure at least 40 percent of their raw materials locally.
The regulation - Agricultural Marketing Authority (Grain, Oilseed and Products) (Amendment) Regulations (No. 2) - aims to reduce import dependency, strengthen domestic production, and foster rural industrialisation by creating stable markets for local farmers and agro-industries.
According to the Zimbabwe National Statistics Agency (ZimStats), imports of soyabean, sunflower, cotton seed, and crude oil have surged by 144 percent - from US$142 million in 2010 to US$346 million in 2024, peaking at US$370 million in 2022.
Under the new law, all processors must meet the following local sourcing thresholds:
"With effect from April 1, 2026, all processors must source at least 40 percent of their annual requirements of grain, oilseed and products locally.
With effect from April 1, 2028, 100 percent of all annual requirements of grain, oilseed and products must be sourced locally," reads the SI.
To comply with the new requirement, the Grain Millers Association of Zimbabwe (GMAZ) has entered into a partnership with the Agricultural and Rural Development Authority (ARDA) to produce 200 000 tonnes of non-GMO white maize in the upcoming season.
Under the agreement, ARDA will cultivate and deliver maize to GMAZ members between April 2026 and March 2027, at a fixed price of US$355 per tonne, with deliveries targeted at major urban centres - Harare, Bulawayo, and Mutare.
Agricultural economist and Wisdom Afrika Leadership Academy (WALA) founder, Professor Mandivamba Rukuni, described the SI as "revolutionary," saying it translates long-standing policy debate into concrete action.
"By legally requiring local sourcing and protecting contractor investment, the SI opens pathways for rural manufacturing," said Prof Rukuni.
"It stabilises prices, supports farmers, invites investors into township-based agro-industries, and cushions consumers from volatile global food prices."
Stockfeed Manufacturers Association of Zimbabwe (SMAZ) executive administrator, Dr Reneth Mano, said their members already rely heavily on local sourcing through the Food Crop Contractors Association (FCCA) framework.
"Our SMEs have developed local supply chains by integrating farmers within their district catchment areas through third-party offtake agreements involving the feed company, the farmer, and a credit provider," Dr Mano said.
"These are mutually beneficial, risk-sharing contracts that avoid the moral hazards that could arise if manufacturers carried the full farming risk."
FCCA chairperson, Mr Graeme Murdoch, said their members were scaling up soyabean production in line with government policy.
"The FCCA has increased soyabean hectarage from 11 609 hectares in 2020/21 to 30 692 hectares in 2023/24, a 164 percent increase," Murdoch said.
"Output surged 78 percent over the same period, from 34 827 tonnes to 62 000 tonnes."
He added that soyabean production is being financed through partnerships with CBZ Agro-Yield, AFC, NMB, ARDA, and the Presidential Input Scheme, with the stockfeed industry consuming the bulk of the crop.
Oil Expressers Association of Zimbabwe (OEAZ) representative Mr Roderick Musiyiwa said the country must expand soyabean cultivation to ensure self-sufficiency in soya meal production.
"Zimbabwe requires around 250 000 tonnes of oilseeds annually to meet soya meal demand. This can be achieved by planting 120 000 hectares under soyabean at an average yield of two tonnes per hectare," Musiyiwa said.
He added that oil expressing companies have grown from three in 2010 to eight today, backed by over US$100 million in local and foreign investment since 2009.
However, he cautioned that not all processors currently contract local farmers, noting that "some operate only refining plants without crushing, margarine, or soap production capacity."
With the 2025/26 season underway, SI 87 of 2025 is set to anchor Zimbabwe's efforts to reduce the import bill, empower local producers, and create jobs in rural and peri-urban areas through agro-industrialisation.
The success of the policy, experts say, will depend on strict enforcement, timely input financing, and collaboration between government, farmers, and processors to ensure sustainable raw material supply for the nation's growing industrial base.
- The Herald
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