Sustainable Agriculture in Zimbabwe

Following the government’s fast-track land reform program which began in 2000, irrigation infrastructure deteriorated, and the majority of the new landowners depend on rain rather than irrigation for their crops. As the weather pattern changes and droughts become more frequent, the country has failed to produce enough grain to meet domestic demand. The government grants 99-year leases for agricultural land, but the protections of such leases are too weak  to serve as collateral for financing, hindering agricultural investment.  The government has also instituted a number of inefficient “command” agricultural subsidy programs which have hampered growth and corruptly squandered billions of dollars.

Leading Sub-Sectors

Given the frequent droughts, there are opportunities for German companies to sell high quality tractors to local farmers under the country’s agricultural mechanization drive as well as irrigation equipment to help the sector, especially small-scale commercial farmers, move away from  rain-fed agriculture.

Moreover, there are opportunities to provide food processing machinery and equipment for agricultural commodities into manufactured goods in line with the government’s goal of increased value addition. There are also opportunities in the agrochemicals subsector. In particular, the Zimbabwe Investment Authority emphasizes the need to increase capacity in manufacturing of fertilizer, insecticides, and pesticides.

Tobacco is the most important cash crop in Zimbabwe in terms of generating foreign exchange. The government expects tobacco output to decline from 258 million kilograms in the 2019 marketing season to around 240 million kilograms in 2020, but the industry expects a good quality crop.  Industry players attributed the decline in output to a poor start during the 2019/2020 rainy season. 

Cotton, Zimbabwe’s second most important cash crop, is usually grown under contract farming arrangements where contractors supply production inputs (seed, fertilizer and chemicals) to farmers on loan. At harvest, the contractor buys back the contracted seed cotton, deducts costs of the inputs, and pays the contract farmer the remaining balance. The country originally expected a lower cotton output in the 2019/20 marketing season due to poor rains, but the government now forecasts cotton output to remain at 100,000 metric tons in the 2019/20 marketing season largely because some farmers adopted new hybrid varieties.  According to the Zimbabwe Farmer’s Union, commercial farmers, who account for 30 percent of the total cotton output, will realize very high yields which will offset the decline in output from the small- scale farmers who continued to rely on open pollinated varieties.

Currently, Zimbabwe has the capacity to produce 600,000 tons of cotton while the country’s 22 ginners have installed ginning capacity of 750,000 tons per annum. Certain departments within government such as the National Biotechnology Authority of Zimbabwe (NBA) now believe the sector can benefit from adoption of improved seed varieties including GMOs and production of quality fabric to increase demand for raw cotton. Currently, however, there is no political will to fully embrace the use of GMOs in cotton production.

Zimbabwe is quietly becoming one of the world’s largest producers of blueberries, benefiting from its ideal climate and rich soils. The country’s production has surged in recent years, driven by high global demand for this superfood. With the rising consumption of blueberries for their health benefits, investors can capitalize on Zimbabwe’s fast-growing export market.

Zimbabwe’s macadamia nut production is gaining momentum due to its favorable growing conditions. The global demand for these nuts is on the rise, especially in high-end food markets. With increasing acreage dedicated to macadamia trees, Zimbabwe is set to become a key exporter in the coming years, presenting lucrative investment opportunities.

The global avocado craze hasn’t bypassed Zimbabwe. The country is expanding its avocado production, targeting both local and international markets. With a climate well-suited for this crop, Zimbabwe is emerging as a prime location for avocado farming, making it a promising sector for agricultural investment.

Paprika farming in Zimbabwe is experiencing a revival due to favorable global prices. This versatile crop is used in food processing and the spice industry. Investors can tap into the growing demand for organically farmed paprika, with Zimbabwe providing a prime location for cultivation.

Zimbabwe’s citrus industry, particularly oranges and lemons, has great potential due to the country’s conducive growing conditions. With demand for fresh citrus and juice concentrates rising globally, there is a growing need for investment in this profitable and expanding market.