ZMX-GMAZ partnership to boost grain trade, farmer financing in Zimbabwe

ZIMBABWE – The Zimbabwe Mercantile Exchange (ZMX) has signed a five-year partnership with the Grain Millers Association of Zimbabwe (GMAZ) to strengthen the country’s grain value chain by improving access to financing, reducing post-harvest losses, and expanding market access for farmers.

The agreement is designed to establish a transparent and structured market-based grain procurement system that guarantees off-take for farmers while easing the burden on the national treasury.

Particularly, the partnership seeks to boost the adoption of warehouse receipt financing, a mechanism that allows farmers to store grain in certified warehouses and use the receipts as collateral to access working capital before selling their produce.

Through this system, farmers can obtain advance funding to reinvest in inputs such as seed, fertilizer, and equipment, thereby supporting more consistent and productive cropping cycles.

For millers, the arrangement ensures a more predictable and traceable supply of grain. GMAZ millers have committed to procuring maize through forward contracts based on the warehouse receipts, which enhances the liquidity and trustworthiness of the receipts and increases their appeal to banks, pension funds, and microfinance institutions.

“Today we make history by signing an enabling agreement that will fully operationalise our commodities exchange by committing to procure all the maize brought to ZMX,” said Tafadzwa Musarara, GMAZ chairperson, during the signing ceremony.

“This aligns with international best practices and marks a departure from the past, where the fiscus carried the full burden of grain procurement,” he added.

Forward contracts under the scheme allow millers to take delivery in manageable batches, easing pressure for lump-sum payments and better aligning purchases with processing schedules. This contractual approach also lowers the risks for financial institutions, encouraging them to fund smallholder and commercial farmers more confidently.

The ZMX-GMAZ partnership comes at a critical time for Zimbabwe’s agriculture sector, which has faced challenges due to climate change, limited access to credit, and high post-harvest losses.

According to the Food and Agriculture Organization (FAO), Zimbabwe loses an estimated 30% of its harvested grain annually due to inadequate storage, pest damage, and poor market access. The warehouse receipt system is a globally recognized solution to these challenges, with successful models implemented in countries like Kenya, Ethiopia, and Zambia.

ZMX CEO Collen Tapfumaneyi has previously emphasized the platform’s role in transforming Zimbabwe’s commodities markets. The exchange, launched in 2021, is modeled on regional commodity trading hubs and aims to bring efficiency, transparency, and price discovery to local agricultural trade.

Sign up to HERE receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.