Harare, Zimbabwe – Zimbabwe’s recently implemented grain and oilseed import levies have garnered strong support from legal and economic experts, who assert these measures are firmly rooted in the Agricultural Marketing Authority (AMA) Act. The levies are seen as a crucial component of a broader national strategy aimed at bolstering local agricultural production, enhancing food security, and reducing the nation’s reliance on imports.
This week, the Grain Millers Association of Zimbabwe (GMAZ) threatened legal action to challenge Statutory Instrument 87 of 2025, arguing that the levies are unconstitutional and would inevitably lead to a significant surge in the prices of essential commodities. However, legal scholars contend that GMAZ’s stance is fundamentally flawed, both legally and from a policy perspective.
A senior legal expert, well-versed in the AMA Act, highlighted that the legislation explicitly grants the government the authority to impose such levies. This power is exercised in pursuit of agricultural development and the overarching goal of food security.
“The AMA Act unequivocally outlines its mandate and purpose, stating in its preamble, among other things, ‘to provide for the imposition and collection of levies on producers, buyers and processors of agricultural products; to provide for the administration and disbursement of moneys from the Fund,'” the expert explained. “It therefore follows that the Minister is empowered to impose these levies, as has been correctly done in this instance. This is further substantiated by section 5(1), which details the functions and powers of the Authority.”
This legal interpretation directly refutes GMAZ’s claim that the Minister’s authority to impose levies is restricted solely to locally produced agricultural commodities. The expert further elaborated that these levies are an integral part of a comprehensive regulatory framework designed to stabilize domestic agriculture, safeguard local producers, and finance critical infrastructure essential for national food security.
“The Government, from the highest office, has consistently articulated its commitment, in line with National Development Strategy 1 (NDS1) and National Development Strategy 2 (NDS2), to stimulate domestic production, particularly in the agricultural sector. This is geared towards achieving national food sovereignty and ultimately contributing to Vision 2030,” the legal expert added. “This is especially pertinent given that the country is unnecessarily losing over US$4 billion through the importation of goods that could be produced domestically.”
The levies are a cornerstone of the Government’s import substitution and localization drive, as outlined in Statutory Instrument 87 of 2025. This instrument mandates processors and manufacturers to progressively increase their sourcing of grains and oilseeds from local producers. Authorities emphasize that this policy is not merely a revenue-generating exercise but a strategic intervention designed to revitalize domestic production systems, which have been weakened by prolonged droughts, underinvestment, and a heavy reliance on imports.
Under this framework, revenues generated from the levies are channeled into the Agricultural Revolving Fund. This fund is dedicated to financing irrigation infrastructure and farmer development projects across the nation. Government reports indicate that approximately US$5.7 million has already been raised through this levy system, with US$3.2 million allocated to irrigation development, covering 850 hectares in various provinces. Notable projects, such as the Nyaitenga Irrigation Scheme in Mashonaland East and the Dinhe Irrigation Scheme in Masvingo, are reportedly over 90 percent complete.
Matabeleland North and South have a combined 5,607 hectares specifically designated for summer and winter cereals. This acreage has the potential to yield 50,000 metric tonnes of cereal grains annually, sufficient to supply millers in the Matabeleland region. Authorities underscore the critical role of irrigation infrastructure in Zimbabwe’s climate resilience strategy, particularly in anticipation of potential El Niño risks during the 2026/27 farming season.
President Emmerson Mnangagwa has affirmed the Government’s commitment to implementing measures that empower local manufacturers to produce goods currently imported. This initiative is part of a broader effort to reduce import dependency and strengthen domestic industry. Speaking at the Buy Zimbabwe Awards in 2021, President Mnangagwa urged the manufacturing sector to leverage government initiatives designed to foster a stable operating environment and boost local production. These initiatives include policies under NDS1, the Zimbabwe National Industrial Development Policy, and the National Content Strategy.
During this year’s International Business Conference, held concurrently with the 65th Zimbabwe International Trade Fair (ZITF) in Bulawayo in April, Vice President Constantino Chiwenga emphasized that Zimbabwe’s economic transformation hinges on building a robust industrial base capable of driving inclusive growth, curbing imports, and boosting exports. He asserted that Zimbabwe must transition beyond low-value manufacturing to focus on high-value, technology-driven, and knowledge-based industries as the country prepares for NDS2. VP Chiwenga also called upon the private sector to collaborate closely with academic and research institutions to commercialize innovation and enhance industrial productivity. He noted a significant increase in manufacturing sector capacity utilization, rising to over 50 percent from 36 percent in 2019, attributing this to the Government’s ongoing pursuit of policies that support import substitution, local content development, and the fight against counterfeit goods.
Economists view these measures as consistent with global trends, where nations increasingly prioritize food security, industrialization, and the protection of strategic sectors. In September last year, economist Dr. Prosper Chitambara cautioned that Zimbabwe’s de-dollarization program would remain vulnerable without robust import substitution measures. “The de-dollarization roadmap must be underpinned by a strong import substitution framework to alleviate pressure on foreign currency reserves,” he stated. “Without boosting domestic production, particularly in key sectors such as agriculture, manufacturing, and energy, the economy will remain susceptible to foreign currency shortages.”
Investment analyst Professor Malcolm Katuruza echoed this sentiment, emphasizing that reducing import dependence is crucial for economic stability. “By reducing imports of basic goods and certain raw materials, the country can conserve foreign currency for vital investments, such as modern machinery and technology,” he explained. He clarified that import substitution is not about excluding foreign goods but about cultivating competitive local industries capable of sustaining economic growth and job creation. Economist Tinevimbo Shava similarly underscored the importance of strengthening domestic production for long-term currency stability and economic resilience. “Import substitution is not solely about reducing the import bill; it is also about strengthening the social contract surrounding de-dollarization,” he remarked.
Political leaders have also strongly endorsed the broader localization strategy that underpins these levies. Earlier this month, President Mnangagwa stated that Zimbabwe is repositioning itself within global value chains as a producer of value-added goods, rather than merely an exporter of raw materials. “Zimbabwe is steadily securing its place within the global value chain space, not just as a supplier of raw materials but as a competitive producer of value-added goods,” the President declared during the 392nd Ordinary Session of the Politburo in Harare.
In April, Speaker of Parliament Jacob Mudenda issued a warning that Zimbabwe’s escalating import bill was undermining industrial growth and national sovereignty. “The import bill continues to exert an inexorable stranglehold on the economy, draining foreign currency and steadily corroding the very foundations upon which national prosperity must be built,” Adv. Mudenda asserted. He pointed out that imports had surged from US$4.5 billion in 2019 to a projected US$10 billion in 2026. “To put this figure into perspective, every single month, Zimbabwe expends enough foreign currency to fund multiple major national infrastructure projects,” he added. Adv. Mudenda cautioned that Zimbabwe risked becoming a dumping ground for foreign goods unless decisive interventions were implemented to support domestic industry and local procurement. “This insidious practice has systematically debilitated the country’s industrialization agenda and entrenched a debilitating dependency that contradicts every foundational principle of national sovereignty,” he concluded.
Against this backdrop, analysts suggest that the millers’ threat to challenge the levies in court appears increasingly detached from the prevailing national policy direction. Farmer unions and agricultural stakeholders have largely expressed support for these measures, arguing that the levies will help secure local markets, stabilize producer prices, and finance crucial irrigation infrastructure for climate resilience. Government officials maintain that the long-term objective is to deliberately mitigate Zimbabwe’s vulnerability to drought-induced food shortages, volatile global commodity prices, and persistent foreign currency pressures. While millers argue that the levies could lead to a temporary increase in the prices of some commodities, policymakers insist that the broader strategic benefits—including enhanced food security, irrigation expansion, improved rural incomes, and reduced import dependence—far outweigh any short-term costs. Officials further contend that historically, countries that achieved industrialization and agricultural self-sufficiency relied on deliberate policy interventions to protect and develop their local productive sectors before exposing them to unrestricted foreign competition.
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