ZMX,GMB seal partnership to unlock financial flexibility for farmers

STAFF WRITER

In a strategic move set to reshape agricultural financing and market participation in Zimbabwe, the Zimbabwe Mercantile Exchange (ZMX) has entered into a partnership with the Grain Marketing Board (GMB) to roll out an enhanced Warehouse Receipt System (WRS).

The initiative is designed to provide self-financed farmers and other eligible producers with increased access to formal markets and credit facilities, leveraging stored grain as a valuable financial asset.

According to a joint statement released by the two entities, GMB will offer ten of its certified warehouses as operational sites on the ZMX platform. These facilities, located across various parts of the country – Aspindale, Concession, Banket, Chegutu, Gweru, Bulawayo, Norton, Lions Den, Magunje and Murewa – will serve as designated storage and grading points for farmers who choose to participate in the system.

GMB’s involvement as a key warehouse operator ensures trusted handling and verification of commodities.

The program specifically targets farmers and producers who are not beneficiaries of the Presidential Input Scheme (PIP) or the ARDA Scheme.

These individuals will now have the opportunity to store their grain under the ZMX Warehouse Receipt System, which issues a warehouse receipt upon delivery.

This document functions as both proof of storage and a tradable financial instrument. It enables farmers to either sell their grain immediately on the ZMX auction platform or use the receipt as collateral to access credit from financial institutions.

ZMX and GMB emphasised the broader impact of the system, highlighting its potential to transform how farmers manage post-harvest grain and make financial decisions.

“This partnership marks a significant milestone in the commercialization of agriculture in Zimbabwe,” the joint statement noted.

“By offering warehouse receipts as a form of security, we are giving farmers real choices and control over their commodities and financial planning.”

The warehouse receipt can also be used to purchase farming inputs such as seeds, fertilisers, and agrochemicals, offering farmers greater flexibility and control over their production cycles.

To participate, farmers must first register for a free ZMX account. Registration can be completed via the USSD code *727# or through the ZMX mobile and web applications.

Once registered, a farmer can book a delivery to any of the ten certified GMB warehouse sites. Upon delivery, the grain is weighed, graded, and a warehouse receipt is issued directly into the farmer’s ZMX account.

The receipt allows farmers to make informed decisions about whether to sell, store, borrow against, or convert the stored value into necessary inputs.

This flexibility is expected to improve financial inclusion, reduce post-harvest losses, and create a more dynamic and responsive grain market in the country.

The collaboration between ZMX and GMB signals a significant step toward commercializing Zimbabwe’s agricultural sector and supporting the economic empowerment of farmers.

By turning stored grain into a strategic financial tool, the Warehouse Receipt System is poised to usher in a new era of opportunity for producers across the nation.