Treasury has introduced a levy on selected grain and oilseed imports as part of efforts to protect local producers, promote agricultural production and strengthen food security.
The new measure follows recommendations by a Joint Technical Committee, which identified significant price differences between imported grain and locally produced crops, raising concerns that cheaper imports could undermine domestic farmers and discourage production.
In a letter dated 30 April 2026, addressed to the Secretary for Agriculture, Mechanisation and Water Resources Development, Professor Obert Jiri and the permanent secretary in the Ministry of Finance, George Guvamatanga said the levy would be collected by the Agricultural Marketing Authority (AMA) at the point of import permit issuance.
The move is aimed at creating a level playing field between imported and locally produced grain while preventing what Treasury described as an implicit subsidy on foreign imports.
“It is the considered position of the Treasury that any importation of hard wheat in excess of the stipulated threshold should attract an appropriate levy or charge,” said Guvamatanga.
“This will ensure parity between import and domestic production prices, thereby safeguarding local industry and minimising implicit subsidies to imports.”
The Joint Technical Committee established that the difference between import parity and production parity prices stands at approximately US$40 per tonne for maize and US$50 per tonne for soybeans.
While the current wheat blending ratio of 70 percent locally produced soft wheat and 30 percent imported hard wheat was considered balanced, Treasury maintained that any hard wheat imports above the approved threshold would attract a levy.
Authorities say the measure will not only protect local farmers from unfair competition but also help retain foreign currency within the economy.
Revenue generated from the levy will be ring-fenced to support strategic agricultural programmes, including payments to farmers through the Grain Marketing Board (GMB) and the development of smallholder irrigation schemes.
Treasury said the investment in irrigation infrastructure is particularly important as Zimbabwe continues to strengthen climate resilience in agriculture amid increasingly frequent droughts and changing weather patterns.
Several irrigation projects across the country are reportedly facing challenges ranging from waterlogging and delayed electricity connections to inadequate water supplies, highlighting the need for additional funding to improve agricultural infrastructure.
“Treasury remains committed to supporting a pricing and marketing framework that promotes domestic production, ensures fair compensation to farmers, and maintains macro-economic stability,” said Guvamatanga.
To ensure transparency and accountability, Government has introduced strict compliance measures, including mandatory monthly reporting on levy collections, import volumes and the utilisation of funds.
Failure to remit levy proceeds in accordance with regulations could result in breaches of blending requirements and public finance management rules.
Meanwhile, the Ministry of Agriculture, Mechanisation and Water Resources Development has published the official levy rates, which took effect on May 19, 2026, and will remain in force until August 31, 2026.
According to a circular issued by the Permanent Secretary, Prof Obert Jiri, maize imports will attract a levy of US$40 per tonne, while soybeans will be charged US$20 per tonne. Soya meal imports will attract US$35 per tonne, while soft wheat imports will be subject to a levy of US$89.25 per tonne.
For hard wheat, the US$89.25 per tonne levy will only apply once an importer exceeds the permitted 30 percent blending ratio, after which the charge will apply continuously.
The ministry said the levy framework is in line with Statutory Instrument 87 of 2025 and follows consultations with stakeholders coordinated by the Agricultural Marketing Authority.
Government believes the new measures will strengthen local grain production, improve farmer viability and contribute to the long-term stability of Zimbabwe’s agricultural value chain ahead of the 2026 summer cropping season.
