Earlier this 12 months, the Worldwide Finance Company (IFC) printed a report highlighting a number of enterprise alternatives in Zimbabwe’s agriculture sector.
1. Vegatables and fruits
Zimbabwe’s horticultural output aligns properly with seasonal gaps in Western markets. Crops like blueberries and mangetout, for instance, attain international export markets throughout prime home windows, giving Zimbabwean producers a first-mover benefit over rivals and permitting them to seize barely increased costs throughout the Western low season. Zimbabwe additionally has a aggressive edge in floriculture, due to its numerous and extremely appropriate local weather, which helps a wider vary of floral varieties than could be grown as efficiently in competitor international locations like Kenya and Ethiopia.
The IFC report additionally highlights alternatives within the macadamia nut sector. Zimbabwean macadamias are seen as medium-to-high high quality globally, with additional potential for worth addition via processing inside the nation.
Funding alternatives in Zimbabwe’s horticultural sector are accessible via three way partnership fashions with established industrial farmers and the Agricultural Rural Growth Authority. The federal government permits joint ventures between the authority and traders, in addition to between resettled industrial farmers and traders. To make sure tenure safety, these partnerships should obtain approval from the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Growth.
2. Cotton
Cotton contributes a mean of 10% to Zimbabwe’s agricultural GDP. Alongside the worth chain, reviving the spinning and weaving trade might improve capability utilisation, increase yarn manufacturing, and finally revitalise the clothes trade. Zimbabwean cotton is aggressive in international markets, primarily resulting from its low manufacturing prices relative to different regional producers. Handpicked and due to this fact free from contamination, Zimbabwean cotton is recognised for its high quality.
The nation has the capability to provide 600,000 tonnes of cotton yearly, and its 22 ginning services have an put in capability of 750,000 tonnes per 12 months. Between 2016 and 2020, Zimbabwe’s cottonseed manufacturing grew by 184%, from 33,000 tonnes to 93,000 tonnes. Nonetheless, demand for cotton lint exceeds provide, presenting additional funding alternatives. In 2022, annual exports of cotton lint reached roughly $103.2 million, with China, South Africa, and East Asia as essential export locations.
3. Dairy
In 1991, Zimbabwe’s nationwide herd of dairy cows peaked at 112,000, and milk manufacturing reached 261 million litres in opposition to a nationwide demand of solely 120 million litres, resulting in exports to international locations like Zambia, Botswana, Malawi, and Tanzania. Since then, the dairy herd and milk manufacturing have considerably declined, making Zimbabwe a web importer of milk and milk powder. Nonetheless, the dairy trade has been recovering over the previous three years, with manufacturing reaching 91.6 million litres in 2022, up from 39 million litres in 2009. The nation now goals to extend output to 150 million litres by 2025, necessitating an funding in 22,000 heifers and related infrastructure.
Whereas Zimbabwe is just not but able to faucet into the worldwide market, native and regional demand stays enticing. Dairy manufacturing is amongst Africa’s fastest-growing sectors, projected to develop by 10.8% yearly between 2023 and 2028. Nonetheless, transport and storage services require additional funding to cut back vital post-production losses.
4. Beef and poultry
The livestock sector is a core element of Zimbabwean agriculture, encompassing beef, dairy, small ruminants, pigs, poultry, apiculture, aquaculture, and different small livestock.
Zimbabwe’s beef trade, as soon as a serious provider to European markets, noticed exports decline throughout the 2000s, because the land reform programme shifted manufacturing from large-scale industrial farms to smaller operations in resettlement and communal areas, largely serving home demand. In 2020, Mozambique was the most important export marketplace for Zimbabwean livestock merchandise, accounting for 42% of exports, adopted by Botswana, Zambia, and Malawi.
The poultry sector, in the meantime, is productive and has export potential to neighbouring international locations. Zimbabwe’s poultry manufacturing and yields rank among the many highest in comparison with structural friends within the area. With elevated non-public sector funding, the poultry trade might grow to be a invaluable supply of export income and bolster nationwide meals safety.
5. Sugarcane
In 2021, uncooked sugar exports contributed 2.3% of Zimbabwe’s complete exports. By-products from the sugar manufacturing course of, together with molasses, animal feed, and bagasse (for electrical energy technology), additionally discover vital demand. Home and regional markets for sugarcane and sugar stay sturdy, with key patrons together with producers within the beverage, confectionery, baking, and pharmaceutical sectors, in addition to households. Regional markets comparable to Kenya, Botswana, and Mozambique import vital portions of sugar, creating additional alternatives for Zimbabwean produce. The nation exports uncooked and refined sugar to international markets, primarily to the USA.
6. Maize
Maize is a strategic commodity within the Zimbabwean economic system, because it ensures meals safety and serves as uncooked materials for agro-industrial processes. The maize produced within the nation is natural and of very prime quality. The maize sector has the potential to develop different sectors, each upstream and downstream. These embody the monetary companies sector (financing, insurance coverage), inputs manufacturing sector, maize merchandise processing sector, brewing trade, cereal manufacturing, catering, drinks manufacturing, and different oblique sectors that extract starch from maize.
7. Wheat
Since 2000, Zimbabwe has not persistently met its home wheat demand, except 2022, when authorities assist helped improve yields to a mean of 5 tonnes per hectare. Continued assist goals to encourage extra industrial farmers to enter wheat manufacturing.