Zimbabwe treasury stands by grain import levy as millers’ court challenge continues
Fresh Treasury correspondence shows Zimbabwe will maintain grain import levies despite an ongoing legal challenge from millers.
ZIMBABWE – Zimbabwe’s Treasury has reaffirmed support for grain import levies, dealing a blow to efforts by the Grain Millers Association of Zimbabwe (GMAZ) to have the framework scrapped through the courts.
The dispute centres on Statutory Instrument 87 of 2025, which introduced levies on grain imports. GMAZ filed a legal challenge against the measure, arguing that government had already abandoned the framework after a March 3, 2026 letter from Finance Secretary George Guvamatanga described the instrument as unconstitutional and recommended its repeal.
However, a later Treasury letter dated April 30, 2026 shows the government chose to revise the framework rather than discard it. The letter, addressed to the Secretary for Agriculture, Mechanisation and Water Resources Development, supports the continued collection of levies linked to grain imports under marketing arrangements for the 2025/26 summer season.
Treasury said a Joint Technical Committee made the recommendations after reviewing differences between import parity prices and local production costs. The committee identified a gap of US$40 per tonne for maize and US$50 per tonne for soyabeans.
Guvamatanga wrote that, “These variances have material fiscal and market implications, particularly with respect to producer viability, import substitution, and broader macro-economic stability objectives.”
Treasury also backed a wheat blending ratio of 70% locally produced soft wheat and 30% imported hard wheat. The ministry said imports above the approved threshold should attract an appropriate levy or charge to maintain parity between imported and locally produced commodities.
Under the revised arrangement, the Agricultural Marketing Authority will collect the levy when import permits are issued. Treasury said revenue from the levy will enter the Consolidated Revenue Fund and, subject to parliamentary approval, support farmer payments through the Grain Marketing Board and fund smallholder irrigation projects.
Authorities have also ordered monthly reporting on levy collections, import volumes and the use of funds.
Legal experts argue that GMAZ’s case overlooks provisions in the Agricultural Marketing Authority Act that allow government to impose and collect levies to support agricultural development and food security.
The levy framework continues to receive support from government officials and farmer groups who say the policy can strengthen local grain production and reduce dependence on imports. Authorities report that about US$5.7 million (US$5.7 million) has already been collected through the levy system, with part of the money earmarked for irrigation projects.
President Emmerson Mnangagwa, Vice President Constantino Chiwenga and Speaker of Parliament Jacob Mudenda have also defended policies aimed at reducing imports and supporting domestic production.
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