KEY POINTS
- Government unveils a $50 million buffer fund to improve farm payouts.
- State land shifts under AFC control to mobilize agricultural finance.
- Farmers urge swift implementation and inclusion in decision-making.
Zimbabwe’s government announced a $50 million buffer fund to support farmers, alongside a policy that transfers management of state land to the Agricultural Finance Corporation (AFC).
The dual move aims to improve access to credit and reinforce agricultural productivity across the country. Land and Agriculture minister Anxious Masuka revealed the plan at the Zimpapers Tobacco Conference, sponsored by several major industry players including CBZ and OneMoney.
Zimbabwe agricultural buffer fund boosts financing capacity
Minister Masuka explained that the buffer fund will help ensure prompt payments to grain-delivering farmers. He also said the AFC now holds sole responsibility for managing newly opened state land, which includes 11,000 hectares slated for agricultural development. “We made a policy as Government to avoid allocating that land to co‑operatives or private developers. AFC will manage it, raise funds, and reinvest into agriculture,” he also said.
Farmers welcomed the move. Edward Dune of the Tobacco Farmers Union called it a “real wake‑up call” and praised the shift away from offshore financing. Meanwhile, Zimbabwe Tobacco Growers Association president George Seremwe stressed the importance of inclusive consultations to ensure the fund works sustainably.
Farmers push for local financing inclusion
Shadreck Makombe of the Commercial Farmers Union emphasized that local funding remains critical beyond the tobacco sector. Although $50 million is modest, he said, empowering AFC with land control and resources can transform the broader agriculture industry.
The minister added that the government is addressing imbalances in contract farming and pushing for greater transparency so that both farmers and merchants benefit equitably.
With traditional reliance on offshore funding limiting local value retention, this new approach aims to recirculate more revenue into Zimbabwe’s agricultural economy. Furthermore the reforms offer the promise of a more inclusive, productive and locally financed farming sector.
