Zimbabwe earmarks US$500M to modernize grain storage infrastructure, boost capacity

ZIMBABWE – Zimbabwe has set aside over US$500 million to upgrade more than 20 silos nationwide.

This project aims to increase the country’s storage capacity by an additional one million tonnes, building on the current 750,000 tonne capacity.

The upgrade comes at a critical moment, as the nation celebrates its record-breaking wheat harvest of over 560,000 tonnes during the recently concluded winter wheat season. Projections for the 2024/2025 summer cropping season estimate a harvest of over 3.5 million tonnes of cereals, further underscoring the need for robust storage facilities.

Under the modernisation programme, 14 cutting-edge silos are under construction at key Grain Marketing Board (GMB) depots, including Kwekwe, Lupane, Rutenga, Mvurwi, Mhangura, Timber Mills, and Mutare. In total, the initiative will enhance 21 depots nationwide.

Providing an update on the progress, Engineer Edwin Zimunga, the Chief Director for Engineering, Mechanisation, Post-Harvest Agro-Processing, and Soil Conservation in the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development, noted significant strides in the project’s implementation.

“Kwekwe is at 65% completion and is set to be commissioned in March 2025. Mutare will follow in April, with additional silos being commissioned monthly thereafter,” said Eng. Zimunga.

He emphasized the urgency of modern infrastructure to support the country’s growing production and ensure the preservation of harvests.

The modernisation project stems from a 2020 Cabinet directive to increase Zimbabwe’s strategic grain reserve. The ambitious expansion targets raising the total storage capacity to over three million tonnes, a move requiring extensive investment.

To fund the initiative, the government has partnered with multiple stakeholders under innovative financing frameworks such as the Agricultural Mechanisation Development Alliance. These partnerships involve concessionary loans, grants, pension fund schemes, and direct government funding.

The authorities are also finalizing financial arrangements with AFC Trade Catalyst Africa and the African Import and Export Bank to ensure the project’s completion.

 “This has been one of the most profitable and well-negotiated infrastructure schemes in Zimbabwe’s history,” Eng. Zimunga remarked.

According to Eng. Zimunga, the upgraded silos will feature advanced grain dryers and state-of-the-art communication systems to streamline deliveries and payments to farmers. Additionally, the government plans to extend the benefits of enhanced storage to farmers across the country, ensuring inclusivity.

“These depots are positioned as Zimbabwe’s gain points into the African Continental Free Trade Area, enabling trade from every district,” he noted.

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