Food imports urge 55%
LIVINGSTONE MARUFU
Zimbabwe’s food imports soared by 55% in 2024 as the country grappled with one of the worst droughts since independence, forcing authorities to spend nearly US$1bn to avert hunger.
Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Mushayavanhu revealed the sharp increase in food imports.
“The food import bill rose significantly by 55.2%, reaching US$976.1m in 2024 from US$628.9m in 2023. This was driven by grain imports necessitated by the El Niño-induced drought that severely affected the 2023/24 agricultural season. Maize imports surged to US$574.6m in 2024 from US$149m in 2023. While the overall import bill increased, moderating prices for edible oils and fertilizers partially offset the rise,” Dr. Mushayavanhu said.
The drought-induced agricultural downturn weighed on economic growth, which is estimated to have slowed to 2% in 2024. However, projections for 2025 are more optimistic, with a forecasted 6% growth driven by an anticipated recovery in the agriculture sector.
In response to expectations of a better farming season, banks have ramped up investments in agriculture. The sector remains a cornerstone of Zimbabwe’s economy, supplying 60% of raw materials to the manufacturing industry.
Despite the challenges, financial institutions have significantly increased lending to farmers. As of January 20, 2025, loans and advances stood at ZWG50.33bn.
Dr. Mushayavanhu noted that banks continued to prioritize funding for productive sectors, with loans to agriculture and manufacturing accounting for 14.72% and 14.94% of total lending, respectively, as of December 31, 2024.
Encouragingly, farmers are keeping up with loan repayments. The banking sector’s non-performing loans (NPL) ratio stood at 3.37% by year-end 2024, up from 2.02% in June but still well within the internationally accepted threshold of 5%.
With improved rainfall and increased financial support, Zimbabwe’s agricultural sector is poised for a rebound, potentially easing the nation’s reliance on costly food imports.
