How SI 87 of 2025 Could Reshape Zim’s Food Supply Chain

By Tinotenda Bhunu

HARARE – SOMETIMES, government policies are written in legal language that makes them difficult to understand. Yet behind those technical words are decisions that affect everyday business.

One such policy is Statutory Instrument 87 of 2025 (Zimbabwe), issued under the Agricultural Marketing Authority Act (Zimbabwe). The regulation focuses on the importation of grain and oilseeds (products such as maize, wheat, soybeans, and sunflower.)

While the regulation may seem targeted at farmers and large processors, its effects will also be felt by local manufacturers, wholesalers, and small shops that have relied on imported food products.

To understand its impact, we must first understand what the regulation is trying to do.

The Main Idea Behind the Policy

In simple terms, the government wants companies that use grain and oilseeds to buy more from local farmers instead of importing from other countries.

The regulation introduces two important timelines:

1. Starting April 2026, companies that process grain must buy at least 40% locally.
2. Starting April 2028, companies must buy all their grain locally.

This means businesses that used to import cheaper grain from countries such as South Africa or Zambia will now have to depend mainly on Zimbabwean farmers.

What It Means for Local Manufacturers

For many manufacturing companies, especially those producing cooking oil, flour, stockfeed, or cereals imports have helped them keep production stable.

Imports often serve two purposes:

1. They help fill the gap when local harvests are low.
2. They sometimes offer cheaper raw materials.

With the new rules, manufacturers may face a different reality.

If local grain is more expensive or not available in enough quantities, companies may struggle to secure the raw materials they need.

This could lead to several outcomes:

• Some factories may produce less if they cannot find enough supply.
• Production costs may increase if local grain is more expensive.
• Companies may raise prices to cover these costs.

In short, manufacturers may have to adjust their business models to operate in a market where imports are more limited.

What It Means for Local Shops and Retailers

Small shops and wholesalers could also feel the impact.

Many retailers stock products that come from imported grain or imported cooking oil. If manufacturers begin to rely only on local supplies, the number of products available on the market may change.

Two things may happen.

First, some imported brands may become harder to find.

Second, prices may increase if manufacturers face higher costs.

For small retailers, this could mean tighter margins and the need to adjust their pricing strategies.

Possible Growth in Informal Trade

Zimbabwe has a long history of informal cross-border trade. When official imports become restricted, traders often look for alternative ways to bring goods into the country.

Some retailers might begin sourcing products from neighbouring countries such as Mozambique or Botswana through informal channels.

This kind of trade can help keep goods available in the market, but it can also create challenges for regulation and taxation.

Why the Government Introduced the Policy

The goal of the regulation is not necessarily to punish businesses. The main objective is to support local farmers.

For many years, farmers have argued that when they produce grain, cheaper imports flood the market and reduce their ability to sell at good prices.

By requiring companies to buy locally, the government hopes to:

• create a guaranteed market for farmers
• encourage more investment in agriculture
• reduce Zimbabwe’s dependence on imports.

If local farming expands and becomes more productive, the country could benefit from stronger agricultural value chains.

The Big Question

The success of this policy will depend on one key issue:

1. Can local farmers produce enough grain to meet the needs of manufacturers and the market?
2. If domestic production increases significantly, the regulation could help strengthen Zimbabwe’s agricultural sector.

But if supply remains limited, businesses and consumers may face higher prices and occasional shortages.

Final Thoughts

Policies like SI 87 are often introduced with good intentions, to support local industries, and strengthen the economy.

However, policies also change how businesses operate.

For manufacturers and retailers in Zimbabwe, the coming years may require new strategies, stronger relationships with local farmers, and adjustments in supply chains.

The regulation represents a shift toward a more locally driven food system. Whether it becomes a success story or a difficult adjustment will depend largely on how quickly Zimbabwe’s agricultural sector can grow to meet the demand.

Tinotenda Bhunu is an economist and emerging thought leader specializing in economic policy, entrepreneurship, and development in fragile economies. With a sharp focus on market reforms, private property rights, and sustainable growth, he transforms complex economic challenges into actionable solutions that empower communities and shape the future of Zimbabwe and Africa.