More than 35 irrigation schemes across Zimbabwe have been rehabilitated and developed through funding generated from the Grain Import Levy, providing a major boost to agricultural production and strengthening the country’s food security ambitions.
The investments are helping to restore productivity on thousands of hectares of land that had either fallen into disuse or were operating below capacity due to ageing infrastructure and unreliable water supplies. For farmers, the rehabilitation programme is opening the door to year-round production, improved yields and increased incomes.
The significance of the initiative extends beyond the physical restoration of irrigation infrastructure. It reflects a broader effort to equip the agricultural sector with the tools needed to withstand climate shocks, improve productivity and support sustainable economic growth.
In recent years, unpredictable rainfall patterns and recurring droughts have highlighted the need for reliable irrigation systems as a cornerstone of agricultural development. Access to water remains one of the most critical factors determining farm productivity, particularly in regions prone to dry spells.
The rehabilitation programme has seen investments directed towards repairing canals, upgrading pumping stations, modernising water distribution networks and expanding irrigable land. These improvements are enabling farmers to make full use of their land while reducing their dependence on seasonal rainfall.
The availability of irrigation is transforming farming communities. Instead of producing crops during a single season, many farmers can now harvest multiple crops annually, ensuring a steady flow of income throughout the year. The development also allows producers to diversify into horticulture and other high-value crops that require reliable water supplies.
The benefits are also being felt beyond the farm gate. Increased agricultural production creates demand for transport services, agro-processing facilities, input suppliers and marketing businesses, stimulating economic activity across rural areas. Construction and rehabilitation works associated with irrigation projects have likewise provided employment opportunities in local communities.
Importantly, the irrigation developments support Zimbabwe’s drive to strengthen domestic food production and reduce reliance on imports. As more land is brought under irrigation and agricultural output increases, the country is better positioned to meet local demand while preserving foreign currency.
The revival of more than 35 irrigation schemes is therefore about more than restoring damaged infrastructure. It is about creating a foundation for sustainable agricultural growth, supporting farmer livelihoods and building resilient value chains that can drive rural development for years to come.
As Zimbabwe continues to prioritise agricultural transformation, irrigation development is increasingly emerging as a key pillar of the country’s strategy to achieve food security, boost rural incomes and ensure stable production throughout the year. Through the Grain Import Levy, resources are being channelled into projects that have the potential to reshape the agricultural landscape and secure the future of farming communities nationwide.
Zimbabwe’s banking sector is showing growing confidence in the Zimbabwe Gold (ZiG) currency , with the latest Reserve Bank of Zimbabwe (RBZ) figures indicating steady growth in local currency deposits and strong reserve backing for the monetary system .
According to the RBZ’s latest Monetary, Currency Price and Financial Developments Snapshot, banking sector ZiG deposits rose consistently to exceed ZiG31 billion by the close of September 2026, with reserve money holding steady at around ZiG7 billion.
The trend points to increasingly use of the local currency within the formal banking sector , a development authorities view as critical for strengthening monetay stability and supporting economic activity .
The central bank’s figures also show that the country’s reserves continue to provide more than two months of import cover , a key indicator of a country’s ability to meet external payment obligations and cushion the economy against global shocks .
Since the introduction of ZiG in April 2024 , the RBZ has mantained a tight monetary stance aimed at preserving currency stability and containing excessive money supply growth . The latest data suggests that this approach has helped keep more reserve money growth under control while allowing deposits to expand .
A notable feature of the figures is the level of reserve backing behind the local currency . According to RBZ , reseve assets are sufficient to cover reserve money more than six times , while ZiG deposits are backed approximately 1.4 times by reserves .
This level of backing is designed to reinforce confidence in the local currency by demonstrating that adequate reserves exist to support monetary obligation .
The steady increase in bank deposits also signals greater participation in the formal financial system by businesses and households. Rising deposits typically enhance financial intermediation, enabling banks to mobilise savings and support productive economic activity through lending and other financial services.
The maintenance of import cover above the two-month threshold further strengthens Zimbabwe’s external position by ensuring the availability of foreign currency for strategic imports, including fuel, industrial raw materials, medicines and capital equipment.
The latest RBZ data therefore paints a picture of a monetary environment characterised by stable reserve money, expanding banking sector deposits and sustained reserve support for the ZiG.
For businesses, the figures offer another indication of improving monetary fundamentals, while for policymakers they provide evidence that efforts to anchor the local currency through reserve accumulation and disciplined money supply management are continuing to yield results.
As Zimbabwe pursues broader economic growth objectives, maintaining strong reserves and confidence in the financial system is likely to remain central to the country’s monetary strategy.
The Reserve Bank of Zimbabwe (RBZ) has recorded a strong performance under the International Monetary Fund (IMF) Staff Monitored Programme (SMP), meeting all its third-quarter quantitative targets and reinforcing confidence in the country’s monetary reform agenda.
Data contained in the RBZ’s Q3 Monetary, Currency, Price and Financial Developments Report show that the central bank comfortably achieved the agreed benchmarks on foreign reserves, money supply growth and lending to the public sector.
The strongest performance was registered in the accumulation of net official international reserves. Against a September target of US$291 million, the RBZ reported provisional reserves of US$315 million, exceeding the programme benchmark and signalling improved external sector resilience.
The central bank also maintained its commitment to fiscal and monetary discipline by recording zero credit to the non-financial public sector, in line with the IMF programme requirement. The outcome reflects ongoing efforts to avoid central bank financing of government operations, a key pillar in maintaining macroeconomic stability.
On liquidity management, the RBZ kept growth in the ZiG monetary base within the prescribed limits. The September ceiling was set at ZiG2.54 billion, while the provisional outturn stood at ZiG2.17 billion, remaining comfortably below the threshold.
The results suggest continued success in the central bank’s efforts to contain excessive money supply growth while supporting exchange rate and price stability.
According to the report, the RBZ not only met all quantitative targets but also made significant progress in implementing structural benchmarks under the IMF-monitored programme following the second SMP review mission conducted in September 2026.
The central bank noted that its self-assessment of third-quarter performance indicates that all agreed targets were achieved with a comfortable margin.
The latest figures are likely to be viewed positively by investors and development partners, as they point to sustained policy discipline and strengthened reserve buffers. Analysts say the performance provides further evidence that the country’s monetary authorities are adhering to reform commitments aimed at consolidating economic stability and enhancing confidence in the ZiG currency.
With foreign reserves rising above target and monetary expansion remaining under control, the third-quarter results underscore the progress being made toward building a more stable and predictable macroeconomic environment.
The government”s irrigation rehabilitation and development programme is making significant progress across Mashonaland , with most projects reaching completion and farmers already benefiting from improved access to water production .
Funded through the Grain Levy , the initiative forms part of broader efforts to strengthen food security , boost agriculture productivity and reduce dependence on rainfall . As of September 1 2026 , four tranches of Grain Levy funds had been disbursed . With 90% channeled to the Irrigation Development Fund through AFC Land and Development Bank and 10% allocated to the Agricultural Marketing Authority (AMA) for administration .
Latest project updates show that irrigation schemes in Mashonaland Central and Mashonaland West are nearing full completion , bringing hundreds of hectares under water supply .
Among the standout projects is the 52,5 hectare Chimhanda Irrigation Scheme in Mashonaland Central , which has been completed and certified . Farmers are already using the facility to irrigate their crops , marking a major milestone in efforts to improve year round agricultural production .
The 25-hectare Musarurwa scheme and the 50-hectare Nyamangara project in Mashonaland West have also been completed and certified, with irrigation activities now underway at both sites.
At Dotito , a 45 hectare irrigation project has reached 99% completion . While minor works remain outstanding , the schem is effectively operational and farmers have already started irrigating their fields .
The largest project under the Mashonaland portfolio is the 120 hectare Mapano irrigation scheme . The project has reached 75 % completion , with installation works largely finalised . Processes related to electricity connections are also progressing after a quotation was received and shared with the relevant authorities .
In total , the five projects cover approximately 292.5 hectares , representing a significant investment in irrigation infrastructure aimed at strengthening agricultural output in the region .
The developments come at a time when irrigation is increasingly viewed as critical tool in building resilience against climate change and erratic rainfall patterns . Reliable water supply allows farmers to maintain production throughout the year , improve yields and diversify cropping activities .
For communities across Mashonaland , the completion of these projects is expected to translate into higher agricultural production , improved household incomes and greater opportunities within agro -processing value chains .The progress also highlights the growing impact of the Grain Levy as a dedicated funding mechanism for agricultural infrastructure . With several schemes already operational and others nearing completion , the initiative is beginning to deliver tangible benefits on the ground , positioning irrigation as a key pillar in Zimbabwe’s drive towards sustainable agricultural growth and food security .
Zimbabwe’s current account surplus is projected to reach US$3.5 billion in 2026, driven by solid export performance, strong remittance inflows, and sustained macroeconomic stability, official figures reveal.
According to the Reserve Bank of Zimbabwe (RBZ), the projected current account expansion underscores the continued strengthening of the country’s external sector position, providing crucial foreign exchange buffers for the domestic financial system.
RBZ Governor Dr John Mushayavanhu said the current account recorded a surplus of US$1.1 billion in the first half of 2026, an improvement from the US$248.2 million recorded in the corresponding period of 2025.
The expanding current account surplus reflects ongoing structural stability in foreign exchange inflows, supported by diaspora remittances and mining exports.
The strong external balance has helped anchor exchange rate stability for the local currency, the ZiG, while containing imported inflationary pressures across key supply chains.
The central bank noted that the macroeconomic environment remains supported by declining domestic price pressures, allowing monetary authorities room to foster economic growth through affordable commercial credit.
Dr Mushayavanhu said the central bank will continue monitoring emerging external and environmental risks, including global commodity price shifts and potential El Niño climate patterns forecasted for the 2026/27 agricultural season.
The Zimbabwe Revenue Authority (Zimra) collected US$4.71 billion in net revenue for the first half of 2026, surpassing its target of US$4.05 billion by 16.14%.
The performance represents a 46.73% increase compared to the US$3.21 billion collected in the corresponding period in 2025.
In local currency terms, net collections reached ZiG125.06 billion against a target of ZiG104.99 billion, exceeding expectations by 19.12%.
Gross collections for the period stood at ZiG132.53 billion, with Zimra issuing ZiG7.48 billion in refunds, representing 5.64% of total gross collections.
According to Zimra Board Chairperson Antony Mandiwanza, compliance enforcement accounted for 78.2% of the excess revenue.
Other key revenue drivers included increased visibility through digital tax systems, staff focus, and tighter debt control, while policy changes accounted for less than 1% of the surplus.
Corporate Income Tax led performance among individual tax heads, exceeding its target by 47.77%.
Other strong performers relative to target included Value Added Tax (VAT) on Imports at 41.20%, Mining Royalties at 30.25%, Net Customs Duty at 26.93%, and Net VAT on Local Sales at 22.03%.
In terms of overall revenue contribution, four tax heads generated 60% of total collections. Pay As You Earn (PAYE) was the largest contributor at 18%, followed by Corporate Income Tax at 15%, VAT on Local Sales at 14%, and VAT on Imports at 13%. The remaining tax heads collectively accounted for 40% of total revenue.
The revenue collector expanded its tax base by registering 37,783 new taxpayers during the six-month period, which included 2,056 new PAYE taxpayers and 955 new VAT taxpayers.
Filing compliance remained high across major operations, with Large Client Office PAYE compliance hitting 98.1% and Medium Client Office PAYE reaching 92.7%.
Mandiwanza said Zimra made progress on its digital transformation initiatives, bringing its Tax and Revenue Management System (TaRMS) to 98% completion and its Fiscalisation Data Management System (FDMS) to 99%.
He said the integration between TaRMS and FDMS reached 100%, supporting a national taxpayer onboarding rate of 92% across 22,679 taxpayers.
The revenue authority processed 20.4 million fiscal invoices in H1 2026, while virtual fiscalisation usage grew from 20% in the first quarter to 49% in the second quarter.
Mandiwanza said all 16 commercial banks in the country are now fully integrated for payment processing.
Trade facilitation metrics show that Zimra processed ZiG253.81 billion in imports and ZiG190.22 billion in exports.
Out of 261,435 registered Bills of Entry, 258,631 were processed, maintaining an assessment rate of 98.93% and an average clearance time for local bills of entry of two hours, 11 minutes, and 30 seconds.
On the enforcement front, ZIMRA scanned 73,085 high-risk cargo shipments, seized 14,881 high-risk transit trucks, issued 1,480 Notices of Seizure, and achieved a sealing rate of 23.92%.
Cumulative debt at the end of June 2026 stood at ZiG9.47 billion and US$1.26 billion.
Mandiwanza said Zimra projects revenue collections of US$5.65 billion for the second half of 2026, representing an expected growth rate of 19.88% compared to the first half.
He noted that the second half performance outlook remains subject to risks including global trade uncertainty, commodity price volatility, domestic liquidity constraints, and compliance pressures.
The government says it will launch a nationwide cloud seeding programme in November 2026 to cushion the agriculture sector against the anticipated El Niño-induced drought during the 2026/27 rainfall season.
The intervention forms part of a broader, intensified strategy to mitigate severe dry spells, safeguard domestic crop production, and reinforce national food security ahead of projected below-normal rainfall across the region.
Under the initiative, the Meteorological Services Department will target suitable cloud formations across all provinces to enhance rainfall yield, particularly in key agricultural belts.
Cabinet received an update on the status of the programme from the Minister of Agriculture, Mechanisation and Water Resources Development, Dr Anxious Masuka, who outlined measures being put in place to enhance rainfall prospects across the country.
The intervention comes as global climate forecasts continue to warn of a severe El Niño that could result in below-normal rainfall, threatening food production, water availability and rural livelihoods.
To support the operation, government has designated three aircrafts that will be stationed in Harare, Bulawayo and Masvingo, providing coverage across all provinces.
The Harare-based aircraft will cover Mashonaland East, Mashonaland West and Mashonaland Central, while the Bulawayo aircraft will serve Matabeleland North and Matabeleland South. Operations from Masvingo will extend to Midlands, Manicaland and Masvingo provinces.
Agriculture remains one of Zimbabwe’s most important economic sectors, contributing significantly to employment, food security and industrial raw materials.
As a result, efforts to improve rainfall distribution are viewed as critical to sustaining agricultural output and supporting economic stability.
Government is currently mobilising the financial and technical resources required for the implementation of the exercise, with authorities expressing confidence that the programme will complement other drought mitigation initiatives already underway.
The cloud seeding operation is expected to play an important role in enhancing water availability and supporting farming activities during a season likely to be characterised by heightened climatic uncertainty.
The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) has reduced its key interest rate from 30% to 27.5% with immediate effect.
The decision, announced on Monday following the committee’s meeting, marks a cumulative 7.5 percentage point reduction in policy rates since June 2026.
Central bank Governor Dr John Mushayavanhu attributed the rate cut to a benign inflation environment and sustained macroeconomic stability across the country.
“The MPC further emphasised that the reduction in the Bank policy rate does not signal monetary easing, but a realignment of the policy rate to the observed inflation dynamics,” Dr Mushayavanhu said in a statement.
He added that the MPC has embarked on a gradual path of monetary policy normalisation against the backdrop of entrenched macroeconomic stability and better-anchored inflation expectations.
“The pace of monetary policy adjustment will remain dependent on prevailing monetary and financial conditions, taking into consideration uncertainties arising from climatic shocks and geopolitical tensions,” the Governor said.
In addition to lowering the main policy rate, the central bank reduced the interest rate on its Targeted Finance Facility from 15% to 12.5% while keeping the cap on bank lending rates to productive sectors at 22.5%.
The committee opted to maintain existing statutory reserve requirements, 30% for demand deposits and 15% for savings and time deposits, and left minimum deposit interest rates unchanged.
The policy decision comes against a backdrop of stabilising domestic inflation and strengthening foreign reserves.
Annual ZiG inflation fell to a record low of 2.9% in August 2026 before edging up to 3.7% in September, primarily driven by rising international crude oil prices, which crossed US$100 per barrel earlier in the month.
Month-on-month inflation averaged 0.4% between January and September 2026, keeping full-year inflation on track to finish below 7%.
Zimbabwe recorded a 64.5% increase in goods trade surplus of US$526.5 million in August 2026, from the US$320 million realised in July, latest official data shows.
According to data from the Zimbabwe National Statistics Agency, total exports increased by 14.2% to US$1.68 billion in August, up from US$1.47 billion recorded in the previous month.
In contrast, imports remained largely flat, edging up by 0.2% to US$1.152.4 billion in August 2026 compared to US$1.149.8 billion in July.
Extractive sector products continued to dominate the country’s export basket. Semi-manufactured gold generated the largest share of exports at 44%, followed by other mineral substances at 19.5% and other ores and concentrates at 12%.
Nickel mattes accounted for 8.0%, while stemmed or stripped tobacco contributed 3.5% of the exports. On the import side, energy and capital goods accounted for the bulk of foreign currency outflows.
Mineral fuels and oils constituted the highest import cost at 22.2% of total imports, followed by machinery and mechanical appliances at 15.5%, motor vehicles at 6.8%, and electrical machinery and equipment at 4.9%.
Geographically, export earnings remained highly concentrated. The United Arab Emirates emerged as the single largest export buyer, absorbing US$749.6 million worth of goods, followed by China at US$540.3 million and South Africa at US$218.3 million.
Together, the three destinations accounted for nearly 90% of total export revenue for the month.
South Africa maintained its position as Zimbabwe’s primary source of imports, supplying US$411.8 million in goods, followed by China at US$206.1 million, Bahrain at US$78.2 million, and Mozambique at US$54.9 million.
Collectively, these four source markets supplied 65% of the country’s total import bill in August.
In regional trade, exports to the African Continental Free Trade Area bloc totaled US$286.7 million, anchored heavily by nickel mattes at 46.8% and iron or steel products at 9.2%.
Total imports from the continental market stood at US$585.7 million, led by industrial machinery, petroleum products, and fertilisers.
Tapiwanashe Mangwiro
The government has set out a comprehensive strategy to transform Zimbabwe’s agricultural sector into a climate-resilient, commercially oriented agro-industrial hub aimed at achieving national food sovereignty by 2030.
The policy framework prioritises climate-proofed production, rural industrialisation, and improved farmer livelihoods to shift the country away from rain-fed subsistence farming toward sustainable, high-value commodity production.
Speaking at the inaugural National Agriculture Conference and Expo (NACE) 2026, Agriculture, Mechanisation and Water Resources Minister Dr Anxious Masuka said the country must move beyond the traditional focus on simply producing enough food and instead build an agriculture sector capable of supporting broader economic transformation.
He said agriculture would remain central to the attainment of Vision 2030, noting that the sector contributed significantly to economic growth last year.
“The 8.3% growth that we saw in the economy last year, 2.2 percentage points were contributed by agriculture, which grew by a stellar 27.9%,” Dr Masuka said.
He said the first major resolution was to achieve perennial food security and progressively strengthen food sovereignty by increasing domestic production.
“For far too long, we were looking at food security from two perspectives. The first is that if we didn’t produce enough, we must import,” he said. “But with macroeconomic shocks, pandemics, geopolitical disruptions of trade routes and conflict, increasingly, we are looking towards food sovereignty.”
Dr Masuka said the government would therefore continue implementing measures that encourage domestic production, with the proportion of locally produced goods on supermarket shelves already reaching 80%.
“We must do much more,” he said.
Another key resolution is to put farmers at the centre of the agricultural value chain and ensure they receive a greater share of the value generated from their produce.
He said farmers were currently disadvantaged by the structure of the value chain, particularly where produce was sold at relatively low prices while processed products commanded significantly higher prices.
“Farmers must get more fair value for their effort. So we will be placing farmers at the centre of the value chain increasingly,” Dr Masuka said.
The government is also targeting accelerated irrigation development as part of efforts to climate-proof agricultural production.
Dr Masuka said Zimbabwe intends to develop 496 000 hectares of irrigation by 2030, enabling annual summer production of about 350 000 hectares and potentially producing 1,75 million tonnes of cereals.
The target is intended to reduce the sector’s vulnerability to rainfall shocks and ensure food production continues even during drought conditions.
“Climate-proofing agriculture means adopting climate-smart agricultural practices … to accelerate irrigation development,” he said.
Rural industrialisation and value addition will also be prioritised, with government seeking to move processing closer to production areas.
Dr Masuka said transporting grain to urban centres for milling before transporting processed products back to rural areas was inefficient, with transport accounting for between 30 and 40 percent of the cost of maize meal and bread.
“Rural industrialisation, rural development to anchor Vision 2030,” he said, adding that Zimbabwe must increasingly produce, process and add value to agricultural commodities within farming communities.
Government is therefore supporting small processing facilities for maize, wheat and oilseeds, while village, school and youth business units are expected to contribute to local value addition and beneficiation.
The Minister said Zimbabwe’s ambition was no longer simply to become a regional “breadbasket”, but an agro-industrial hub exporting processed products rather than raw commodities.
“We don’t want to export wheat in Tanzania. We want to export flour, a value-added product, so that we don’t export value, we don’t export jobs,” he said.
Another major resolution is the strengthening of the country’s strategic grain reserves in preparation for future droughts.
Government is targeting at least 600 000 tonnes by August 2027, with stocks expected to reach 450 000 tonnes by the end of this year.
Dr Masuka said the reserve would provide greater protection for vulnerable households and schoolchildren during periods of food shortages.
Government will also intensify measures to reduce post-harvest losses, which the Minister said can reach 28 to 30% in some value chains, while promoting improved grain storage and household food reserves.
The new agricultural financing architecture will complement these measures, including climate-risk insurance, drought mitigation programmes and measures to lower production costs. Government is also looking at sovereign drought insurance and household-level insurance.
Dr Masuka said the Government would also focus on livestock drought mitigation, smaller livestock such as goats and poultry, and stronger coordination among Government, farmers and other value-chain actors.
“The low normal rainfall will not only impact agriculture. It will impact nutrition, health, energy, livelihoods, economy, and much more,” he said.
The resolutions collectively seek to reposition agriculture from a largely primary-production activity into a commercially driven sector that generates employment, supports rural development, strengthens food security and contributes to Zimbabwe’s broader industrialisation agenda.
“Zimbabwe does not wish to become a breadbasket anymore,” Dr Masuka said. “What we want to do is to become this agro-industrial hub made up of these micro-production facilities on farms, so that they can begin to feed into the region.”
