EFFORTS by the Grain Millers Association of Zimbabwe (GMAZ) to challenge the grain import levy framework as legally abandoned have suffered a setback after fresh Treasury correspondence revealed continued backing for the revised levies.
The development follows a legal challenge filed by GMAZ on Tuesday against SI 87 of 2025. The association, led by chairman Tafadzwa Musarara, cited the Agricultural Marketing Authority (AMA), the Ministers of Agriculture, Finance, Justice and Industry and Commerce, the Zimbabwe Revenue Authority (Zimra), the Zimbabwe National Statistics Agency (ZimStat) and the Attorney General as respondents.
The dispute stems from a March 3, 2026 letter in which Finance Secretary George Guvamatanga advised the Office of the President and Cabinet that SI 87 of 2025 was "ultra vires" the Constitution and should be repealed.
However, a subsequent Treasury letter dated April 30, 2026 indicates that government opted to refine and operationalise the levy framework rather than abandon it altogether.
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Addressed to the Secretary for Agriculture, Mechanisation and Water Resources Development, the letter outlines grain marketing arrangements for the 2025/26 summer season and explicitly supports the continued collection of levies linked to grain imports.
Treasury noted recommendations from a Joint Technical Committee co-chaired by deputy ministers from the Finance and Agriculture ministries.
The committee highlighted significant pricing disparities between import parity and local production costs, including a US$40 per tonne gap for maize and US$50 per tonne for soyabeans.
"These variances have material fiscal and market implications, particularly with respect to producer viability, import substitution, and broader macro-economic stability objectives," Guvamatanga wrote.
Treasury also endorsed maintaining a wheat blending ratio of 70% locally produced soft wheat and 30% imported hard wheat.
While describing the arrangement as neutral to domestic price stability, Treasury stated that imports above the prescribed threshold should attract "an appropriate levy or charge" to ensure parity between imported and locally produced commodities.
The April 30 correspondence formally designates AMA as the collecting agent for the levy at permit issuance stage.
Treasury said proceeds would be paid into the Consolidated Revenue Fund and subject to Parliamentary approval, channelled towards farmer payments through the Grain Marketing Board and the financing of smallholder irrigation projects.
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Government has also directed that monthly reports on levy collections, import volumes and utilisation of funds be submitted to enhance transparency and accountability.
Legal experts argue that GMAZ's challenge overlooks provisions of the AMA Act, which specifically empowers government to impose and collect levies to support agricultural development and food security.
According to one senior legal expert familiar with the legislation, the Act's preamble expressly provides for "the imposition and collection of levies on producers, buyers and processors of agricultural products" as well as the administration of funds raised under the framework.
Supporters of the policy argue the levies form part of a broader import substitution strategy designed to stimulate domestic grain and oilseed production, protect local farmers and finance irrigation infrastructure.
Vice President Constantino Chiwenga and Speaker of Parliament Jacob Mudenda have also defended localisation and import substitution policies, arguing that Zimbabwe's growing import bill is undermining industrial growth and draining foreign currency reserves.
Authorities say approximately US$5.7 million has already been raised through the levy framework, with part of the funds earmarked for irrigation development projects aimed at boosting local production and strengthening food security.
