Zimbabwe plans to build a US$500 million cash and grain reserve to help protect food supplies from an expected El Niño-related drought, according to Finance Minister Mthuli Ncube and ministry officials cited by Reuters on October 14.
The proposed 2027 budget provision is split evenly: US$250 million in cash and US$250 million for grain purchases. The government has already bought about 200,000 tonnes of maize from local farmers for strategic reserves, the officials said.
Zimbabwe forecasts a maize harvest of 1.6 million tonnes in the 2027 crop season, nearly 30% below the projected 2026 harvest. The country needs around 2.2 million tonnes of maize annually, including livestock feed, leaving a potential gap if the forecast decline materialises.
The government has also lowered its 2027 economic growth forecast to 3.5%, from an earlier 5% estimate, citing the likely impact of drought on agriculture. Zimbabwe declared a national disaster in 2024 after an El Niño-driven drought left millions needing food assistance.
The reserve proposal is intended to give authorities more room to purchase grain and respond to shortages, but its effectiveness will depend on budget execution, procurement, storage and the severity of the coming season. Zimbabwe’s meteorological service has separately warned farmers to prepare for erratic and below-normal rainfall.
Sources: Reuters report via Sowetan; Zimbabwe seasonal outlook reporting.