Zim pushes for 40% local raw materials for manufacturers

By Delicious Mathuthu

The Zimbabwean government, through the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development, is pushing for 40 percent minimum use of locally produced raw materials annually for manufacturers dealing in agricultural product processing.

This was revealed by the Minister of State responsible for Agricultural Colleges, Water Resources, Irrigation, Water and Sanitation, Hon. Davis Marapira speaking on behalf of the Lands, Agriculture, Fisheries, Water, and Rural Development Minister, Dr. Anxious Masuka, at the Climate Smart Agriculture Breakfast Club meeting held at the Zimbabwe Agricultural Society’s Andy Miller Hall in Harare recently.

Hon. Marapira said government is promoting participation of private players in the agricultural sector so as to uplift farmers by creating demand for local products and minimise on the import bill.

“The Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development has been working tirelessly to promote the participation of the private sector in all aspects of agricultural transformation.

“We have introduced policies that compel private sector off-takers and users of agricultural commodities to produce at least 40% of their annual requirements through local production, supporting local farmers through various frameworks such as joint ventures, contract farming, and corporate farming,” he said.

“Furthermore, we recognize the importance of private sector engagement and public-private partnerships.

“The government’s role is to provide a facilitatory role, ensuring agricultural transformation that is private sector-led and public sector-facilitated,” Hon. Marapira said.

He said there has been considerable growth in the Zimbabwean production value chain due to participation of private players in like in climate-smart agriculture.

He said the partnerships with the private sector have already started yielding positive results since its initiation three years back, giving an example in the wheat farming sector.

“For instance, in 2022, the private sector contributed over 57,000 hectares, accounting for over 71% of wheat production in Zimbabwe,” said.

Hon. Marapira said a Food Crops Contractor Association (FCCA) has been formed, a consortium of private sector millers and processors that has been blessed with governmental support and now contributing to production and import substitution.

Another critical aspect is the need to support agricultural research and development, he said adding that innovation and scientific advancements are key in maximising productivity and efficiency in agriculture.

“By investing in research and development, we can unlock new technologies, techniques, and best practices that will empower our farmers and enable them to thrive in a rapidly evolving agricultural landscape,” he said.

To promote investment in the agricultural sector, Hon Marapira said the Zimbabwean government has put in place polices that include duty rebates on the importation of high-value capital materials, exemption from income tax in the first five years of operation, the establishment of specific economic zones, differentiated value-added tax rates and favorable treatment for machinery and equipment as part of equity investments.

Some of the dignitaries and guests who graced the breakfast club meeting include the Indian Ambassador to Zimbabwe His Excellency Mr Vijay Khanduja, Zimbabwe Agricultural Society President Mr. Ngoni Kudenga, Acting World Bank Country Manager Ms. Fadzai Mukonoweshuro, the Agriculture Finance Corporation Holdings Chief Executive Officer Mr. Francis Macheka.

Care International Country Manager Mr. Patrick Chikana,
Constant North Irrigation Owner & Marondera Farmer Mr. Berin Stockil, HIVOS Urban Futures Project Regional Coordinator Runyararo Chibota, University of Zimbabwe Professor of Soil Science and agroecology, organic farming and climate-smart agriculture expert Dr. Farai Mapanda.

Diplomat Business Network Chairperson Mr. Arvind Nayer,
Diplomat Business Networking Club Founder and Advisor Mr. Reginald Chapfunga, among many others.

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