Zimbabwe's Import Levies Could Save Billions, Strengthen Food Security - Experts Say

Legal experts and economists have strongly defended Zimbabwe's newly introduced grain and oilseed import levies, arguing that the measures are fully backed by the Agricultural Marketing Authority (AMA) Act and promote local production, strengthen food security and reduce dependence on imports.

The Grain Millers Association of Zimbabwe (GMAZ) this week threatened urgent court action unless authorities repeal Statutory Instrument 87 of 2025, arguing that the levies are unconstitutional and would trigger significant increases in the prices of basic commodities.

However, legal experts say the association's position is flawed both in law and policy.

One legal expert familiar with the Agricultural Marketing Authority (AMA) Act said the legislation empowers government to impose such levies in pursuit of agricultural development and food security objectives.

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"The AMA Act is very clear on the mandate and purpose of the statute and in the preamble it says inter alia: '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 legal expert said.

"It therefore goes without saying that the Minister is empowered to impose the levies as he has rightfully done in this case. This is further corroborated under section 5(1) in terms of the functions and powers of the Authority."

The legal opinion directly challenges GMAZ's assertion that the Agriculture Minister can only impose levies on locally produced agricultural commodities.

"The country is unnecessarily bleeding out to the tune of over US$4 billion through importation of goods that can be produced locally."

The levies form part of government's import substitution and localisation drive under Statutory Instrument 87 of 2025, which compels processors and manufacturers to progressively source grains and oilseeds locally.

Under the framework, revenues collected from the levies are channelled into the Agricultural Revolving Fund to finance irrigation infrastructure and farmer development projects nationwide.

Government reports indicate that approximately US$5.7 million has already been raised through the levy framework, with US$3.2 million invested into irrigation development covering 850 hectares across several provinces.

Authorities say the irrigation infrastructure is central to Zimbabwe's climate resilience strategy ahead of anticipated El Niño risks during the 2026/27 farming season.

Economists say the measures are consistent with global trends where countries increasingly prioritise food security, industrialisation and protection of strategic sectors.

Investment analyst Professor Malcolm Katuruza also argued that reducing dependence on imports was critical for economic stability.

"Through reducing imports of basic goods and some raw materials, the country can save foreign currency for critical investments such as modern machinery and technology," he said.

He added that import substitution was not about shutting out foreign goods, but about building competitive local industries capable of sustaining economic growth and employment creation.

Economist Tinevimbo Shava similarly said strengthening domestic production was essential for long-term currency stability and economic resilience.

"Import substitution is not only about reducing the import bill, but also about strengthening the social contract around de-dollarisation," he said.

Analysts say the millers' threat to challenge the levies in court appears increasingly isolated from the broader national policy direction.

Farmer unions and agricultural stakeholders have largely supported the measures, arguing that the levies will help guarantee local markets, stabilise producer prices and finance irrigation infrastructure critical for climate resilience.

Government officials maintain that the long-term objective is to deliberately reduce Zimbabwe's vulnerability to drought-induced food shortages, volatile global commodity prices and persistent foreign currency pressures.

While millers argue that the levies could temporarily increase prices of some commodities, policymakers insist the broader strategic gains, including enhanced food security, irrigation expansion, rural incomes and reduced import dependence, outweigh short-term costs.

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