Zimbabwe is now allowing millers to import maize, two months after it announced a ban, following an official downward revision of the country’s 2024/25 harvest.
The country banned maize imports in August, after projecting a 2.3 million metric ton harvest that would be enough to meet the country’s needs. However, a government notice says authorities will now allow imports by contractors “in instances of need”.
On October 14, the country’s official statistics agency downgraded the government’s initial projection to 1.8 million metric tons.
Zimbabwe has imported 65,090 metric tons of maize from South Africa since September, while the ban was supposed to be in place, according to South Africa’s Agribusiness Chamber. Soon after the import ban was announced, Zimbabwe’s second biggest milling company was forced to suspend operations after running out of maize.
Although analysts say the country’s grain harvest was likely overstated, farmer groups say the end of the state-owned Grain Marketing Board’s monopoly to buy grain had also disrupted the supply chain. Both farmers and millers lack the collection and distribution infrastructure which the state grain procurer has.
The GMB is now restricted to purchasing maize for strategic national reserves, with millers free to buy directly from farmers.
However, without the benefit of the GMB’s national footprint of grain delivery points and with poor infrastructure adding costs to procurement, millers find it cheaper to import from neighbouring countries such as South Africa.
Imported grain also lands in Zimbabwe cheaper, due to higher local production costs and the country’s adoption of the United States dollar, which is stronger than regional currencies.
Reuters
