Source: 2027 National Budget signals paradigm shift in agricultural policy – herald
Nqobile Bhebhe
Zimpapers Business Hub
THE 2027 National Budget is shaping up as a major test of Zimbabwe’s ability to transform agriculture from a climate-dependent activity into a more resilient, productive and commercially driven sector.
The Government is placing climate-smart agriculture, irrigation, mechanisation and private-sector financing at the centre of its strategy.
The proposed policy shift, outlined in the 2026 Mid-Term Budget Review, comes at a time when agriculture is facing a combination of climate, financing and external supply-chain risks, forcing the Government to rethink how the sector can sustain production while reducing pressure on the fiscus.
Presenting the Mid-Term Budget Review in Parliament recently, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, said agriculture would remain a key driver of economic growth, rural transformation and national resilience.
“Government will continue to prioritise agriculture and food security as key drivers of economic growth, rural transformation and national resilience,” said Prof Ncube.
Under the National Development Strategy 2 (NDS2), the 2027 National Budget will seek to move beyond seasonal input support towards productivity, value addition and greater commercialisation of the agricultural value chain.
“In line with the NDS2, the 2027 Budget will focus on increasing agricultural productivity, strengthening food systems and enhancing national food and nutrition security through climate-smart agriculture, irrigation development, mechanisation and improved access to inputs and financing,” said Prof Ncube.
“Strategic emphasis will be placed on boosting production across the crop, livestock and fisheries sub-sectors, while strengthening extension services, research, innovation and market access to improve competitiveness and sustainability within agricultural value chains, alongside accelerated modernisation and commercialisation through investments in agro-processing, value addition, rural industrialisation and sustainable land and water management.”
The emphasis on resilience reflects the reality facing farmers, particularly in areas where production remains heavily dependent on increasingly unpredictable rainfall.
The coming summer cropping season is expected to provide an early test of the new approach, with Prof Ncube warning that the agricultural outlook remains exposed to significant climate and geopolitical risks.
“The 2026/27 summer cropping season, which anchors the 2027 outlook, confronts significant downside risks, stemming primarily from the anticipated El Niño phenomenon and associated severe drought,” he said.
“The attendant risks are further compounded by international supply-chain disruptions and elevated fertiliser prices arising from the Middle East War and the closure of the Strait of Hormuz.”
The combination of drought risk and expensive agricultural inputs makes food security increasingly dependent on the country’s ability to build strategic buffers, while strengthening domestic production.
The Government intends to replenish the Strategic Grain Reserve to 500 000 tonnes by early 2027, providing a buffer against anticipated cyclical drought conditions.
“To mitigate these vulnerabilities, Government has formulated a forward-looking strategy to guarantee national food and feed security, anchored on a national cereal production and the replenishment of the Strategic Grain Reserve to a threshold of 500 000 metric tonnes by early 2027 to serve as a buffer against the anticipated 2027/28 cyclical drought,” said Prof Ncube.
“These targets will be underpinned by the full realignment of the Climate-Proofed Presidential Input Programme (Pfumvudza/Intwasa) with national agro-ecological realities, prioritising drought-tolerant small grains in Natural Regions IV and V, alongside the accelerated expansion of summer irrigable land.”
Prof Ncube said agricultural financing would increasingly be channelled through private-sector co-financing structures under the National Enhanced Agriculture Productivity Scheme (NEAPS).
“Consistent with the fiscal consolidation thrust, agricultural financing will increasingly leverage private sector co-financing structures,” he said.
“Under the National Enhanced Agriculture Productivity Scheme, financing for the 2026/27 season will be facilitated through private banking institutions.
“This is a market-led approach designed to systematically reduce direct fiscal agriculture financing.”
The shift could make agricultural financing more sustainable from a fiscal perspective and encourage greater commercial discipline.
However, it also places a greater premium on access to affordable and appropriately structured finance.
Sector players have in the past said that if farmers are unable to secure loans because of high interest rates, collateral requirements or the inherent risks associated with agriculture, the intended transition could constrain rather than expand production.
This makes the parallel emphasis on productivity, research, extension services and irrigation particularly important.
Prof Ncube said the Government would prioritise both the establishment of new schemes and the rehabilitation of existing irrigation infrastructure.
“Irrigation development focus will be on enhancing irrigation infrastructure through the construction and rehabilitation of both small and large-scale irrigation schemes to maximise water use efficiency and reduce dependence on rain-fed agriculture,” he said.
“In this regard, Government will support the establishment of new irrigation schemes, the rehabilitation of existing ones and the operation and maintenance of schemes across the country, while upgrading research and technology development facilities at the Zimbabwe Irrigation Technology Centre (ZITC) and Fels Farm to strengthen agricultural productivity and food security.”
The strategy also recognises the need to reduce the energy costs associated with irrigation.
“Priority will also be accorded to the introduction of solar-powered systems and other renewable energy-based irrigation technologies to ensure a reliable and sustainable water supply for crop production,” said Prof Ncube.
The deployment of solar-powered irrigation could, therefore, deliver a double benefit: reducing dependence on rainfall while improving the reliability and sustainability of water pumping.
The Government also intends to mobilise private capital through the Irrigation Development Alliance.
“To mobilise the requisite financing, Government will continue to crowd in the private sector through the Irrigation Development Alliance, bringing together public and private institutions to develop a viable and sustainable irrigation framework that amplifies agricultural production and productivity by expanding farmers’ access to irrigation infrastructure,” said Prof Ncube.
“These interventions will be complemented by capacity-building initiatives for farmers and water management personnel to embrace best practices in irrigation scheduling, maintenance and climate-smart water management.”
This approach effectively places irrigation at the intersection of public infrastructure investment and private-sector participation, potentially allowing the Government to stretch limited fiscal resources while expanding productive capacity.
The emphasis on agro-processing and value addition also signals an attempt to ensure that increased agricultural output translates into broader economic benefits. It is believed that simply producing more crops or livestock will have limited impact on rural incomes if farmers remain concentrated at the primary production stage.
The Government’s focus on agro-processing, rural industrialisation, research, market access and value addition could help create stronger domestic agricultural value chains and employment opportunities beyond the farm.
On livestock, Prof Ncube said the sector was expected to maintain positive growth, supported by improved grazing conditions, water availability, feed supplies and dairy expansion.
“The livestock sub-sector is projected to maintain a positive growth trajectory in 2026, driven primarily by strong expansion in the dairy sub-sector and steady improvements in beef production,” he said.
“This is supported by favourable rainfall, improved pasture and water availability. The pen-fed livestock classes, piggery and poultry are also expected to post significant growth in 2026, given the anticipated improved availability of grain output, a major ingredient in stockfeed.”
Beef production is projected to grow moderately, with slaughters expected to rise by 2,8 percent, from 108 000 tonnes in 2025 to approximately 111 000 tonnes in 2026.
“This growth is largely driven by improved grazing conditions and water availability following favourable rainfall during the early part of the season,” said Prof Ncube.
“As a result, livestock body condition has improved from fair to good across most regions.
“The growth of the national herd continues to be subdued, with cattle numbers increasing by about 0,3 percent. A lower mortality rate of 3,3 percent, compared to 4,5 percent in 2024, and a relatively stable calving rate of around 34,6 percent, provides a foundation for a gradual national herd recovery.”
Mr Nkanyiso Moyo, a farmer in Umguza district, said climate change had already become an immediate production challenge rather than a future threat.
“The proposed 2027 Budget priorities are consistent with the realities confronting agriculture today,” he said. “Climate change is no longer a future threat, but a present production risk, making investments in irrigation, climate-smart agriculture and mechanisation indispensable.
“Expanding irrigation infrastructure will reduce reliance on rainfall, improve productivity and enable farmers to produce throughout the year.”
Mr Moyo said stronger research and extension support would determine whether farmers can successfully adopt new technologies and production systems.
“The renewed focus on research, innovation and extension services is equally important because technology adoption remains one of the biggest determinants of productivity,” he said.
“Farmers need timely technical support, improved seed varieties and access to modern production systems if Zimbabwe is to achieve sustainable growth across crop and livestock value chains.
“The emphasis on agro-processing and value addition will also create greater opportunities for rural industrialisation and improved farmer incomes.”
Ms Saneliso Mathe, another farmer, said the proposed grain reserve target and crop realignment demonstrates a shift towards anticipating climate shocks rather than reacting to them.
“The strategy to rebuild the Strategic Grain Reserve to 500 000 metric tonnes, combined with the realignment of Pfumvudza/Intwasa towards agro-ecological suitability, demonstrates proactive planning,” she said.
“Prioritising small grains in drought-prone regions is a scientifically sound approach that strengthens national food security and enhances resilience against recurring climate shocks.
“When combined with irrigation expansion and improved livestock productivity, these measures position agriculture to make an even bigger contribution to economic growth under NDS2.”
Private financing becomes critical and the most significant change in the proposed agricultural policy is the growing role of private-sector financing.
The move is consistent with the broader fiscal consolidation thrust, with the Government seeking to reduce its direct financial burden while retaining a role in creating an enabling environment for agricultural investment.
Irrigation is emerging as perhaps the most important link between climate resilience, productivity and commercialisation.
For Zimbabwe, reducing dependence on rainfall is critical if farmers are to produce consistently enough to supply agro-processing industries, meet domestic food requirements and generate reliable marketable surpluses.
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