Seed firms crippled by Gvt debt
...as US$270m remains unpaid
LIVINGSTONE MARUFU
Seed companies are facing a viability crisis as the Zimbabwean government has failed to settle debts amounting to nearly US$270m accrued over the past three farming seasons.
The unpaid amount, which stems from state-run input support programmes such as Pfumvudza and the Presidential Input Scheme, has left the country’s major seed producers struggling with liquidity.
The outstanding payments date back to the 2022/2023, 2023/2024, and 2024/2025 farming seasons and have adversely affected firms such as Seed Co, among others.
Lands, Agriculture, Water, Fisheries and Rural Development Minister Dr Anxious Masuka confirmed the staggering arrears, noting the potential impact on future seed production.
“Seed grower payments [are] behind and may affect future volumes, as farmers shun seed production. The current debt for the Presidential Inputs Scheme programme for the past three seasons is US$269,636,648.47,” Dr Masuka said.
Of this total, Seed Co alone is owed approximately US$13.31mfrom the most recent season.
The government’s failure to honour its obligations has left seed companies exposed to financial strain, with many now dependent on costly bank loans to stay afloat. Executives warn that continued delays in payment could compromise the quality and availability of seeds in future seasons.
Though the government has acknowledged the arrears, its ongoing liquidity crunch has stalled payments to multiple service providers, including seed firms.
The affected companies are urging the state to fast-track disbursements and explore viable alternatives to settle the debts.
“The current situation is unsustainable. The government needs to urgently come up with a payment plan or explore innovative financing models to ensure the sector doesn’t collapse,” said an executive with a leading seed supplier.
As Zimbabwe continues to depend heavily on donor and government-backed input schemes to support smallholder farmers, the mounting debt to seed firms poses a significant threat to the sustainability of the country’s agricultural sector.
