Earlier this year, the International Finance Corporation (IFC) published a report highlighting several business opportunities in Zimbabwe’s agriculture sector.
1. Fruits and vegetables
Zimbabwe’s horticultural output aligns well with seasonal gaps in Western markets. Crops like blueberries and mangetout, for example, reach global export markets during prime windows, giving Zimbabwean producers a first-mover advantage over competitors and allowing them to capture slightly higher prices during the Western off-season. Zimbabwe also has a competitive edge in floriculture, thanks to its diverse and highly suitable climate, which supports a wider range of floral varieties than can be grown as successfully in competitor countries like Kenya and Ethiopia.
The IFC report also highlights opportunities in the macadamia nut sector. Zimbabwean macadamias are viewed as medium-to-high quality globally, with further potential for value addition through processing within the country.
Investment opportunities in Zimbabwe’s horticultural sector are accessible through joint venture models with established commercial farmers and the Agricultural Rural Development Authority. The government permits joint ventures between the authority and investors, as well as between resettled commercial farmers and investors. To ensure tenure security, these partnerships must receive approval from the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development.
2. Cotton
Cotton contributes an average of 10% to Zimbabwe’s agricultural GDP. Along the value chain, reviving the spinning and weaving industry could increase capacity utilisation, boost yarn production, and eventually revitalise the clothing industry. Zimbabwean cotton is competitive in global markets, primarily due to its low production costs relative to other regional producers. Handpicked and therefore free from contamination, Zimbabwean cotton is recognised for its quality.
The country has the capacity to produce 600,000 tonnes of cotton annually, and its 22 ginning facilities have an installed capacity of 750,000 tonnes per year. Between 2016 and 2020, Zimbabwe’s cottonseed production grew by 184%, from 33,000 tonnes to 93,000 tonnes. However, demand for cotton lint exceeds supply, presenting further investment opportunities. In 2022, annual exports of cotton lint reached approximately $103.2 million, with China, South Africa, and East Asia as main export destinations.
3. Dairy
In 1991, Zimbabwe’s national herd of dairy cows peaked at 112,000, and milk production reached 261 million litres against a national demand of only 120 million litres, leading to exports to countries like Zambia, Botswana, Malawi, and Tanzania. Since then, the dairy herd and milk production have significantly declined, making Zimbabwe a net importer of milk and milk powder. However, the dairy industry has been recovering over the past three years, with production reaching 91.6 million litres in 2022, up from 39 million litres in 2009. The country now aims to increase output to 150 million litres by 2025, necessitating an investment in 22,000 heifers and associated infrastructure.
While Zimbabwe is not yet in a position to tap into the global market, local and regional demand remains attractive. Dairy production is among Africa’s fastest-growing sectors, projected to grow by 10.8% annually between 2023 and 2028. However, transport and storage facilities require further investment to reduce significant post-production losses.
4. Beef and poultry
The livestock sector is a core component of Zimbabwean agriculture, encompassing beef, dairy, small ruminants, pigs, poultry, apiculture, aquaculture, and other small livestock.
Zimbabwe’s beef industry, once a major supplier to European markets, saw exports decline during the 2000s, as the land reform programme shifted production from large-scale commercial farms to smaller operations in resettlement and communal areas, largely serving domestic demand. In 2020, Mozambique was the largest export market for Zimbabwean livestock products, accounting for 42% of exports, followed by Botswana, Zambia, and Malawi.
The poultry sector, meanwhile, is productive and has export potential to neighbouring countries. Zimbabwe’s poultry production and yields rank among the highest compared to structural peers in the region. With increased private sector investment, the poultry industry could become a valuable source of export revenue and bolster national food security.
5. Sugarcane
In 2021, raw sugar exports contributed 2.3% of Zimbabwe’s total exports. By-products from the sugar production process, including molasses, animal feed, and bagasse (for electricity generation), also find significant demand. Domestic and regional markets for sugarcane and sugar remain strong, with key buyers including manufacturers in the beverage, confectionery, baking, and pharmaceutical sectors, as well as households. Regional markets such as Kenya, Botswana, and Mozambique import significant quantities of sugar, creating further opportunities for Zimbabwean produce. The country exports raw and refined sugar to global markets, mainly to the United States.
6. Maize
Maize is a strategic commodity in the Zimbabwean economy, as it ensures food security and serves as raw material for agro-industrial processes. The maize produced in the country is organic and of very high quality. The maize sector has the potential to develop other sectors, both upstream and downstream. These include the financial services sector (financing, insurance), inputs manufacturing sector, maize products processing sector, brewing industry, cereal production, catering, beverages production, and other indirect sectors that extract starch from maize.
7. Wheat
Since 2000, Zimbabwe has not consistently met its domestic wheat demand, with the exception of 2022, when government support helped increase yields to an average of five tonnes per hectare. Continued support aims to encourage more commercial farmers to enter wheat production.
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