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Zimbabwean farmers’ unions have praised the transformative partnership between the Zimbabwe Mercantile Exchange (ZMX) and the Grain Millers Association of Zimbabwe (GMAZ), which is set to modernize the country’s grain marketing system.
The five-year Memorandum of Understanding (MoU) between the two entities is already being hailed as a game-changer, enabling structured grain offtake through ZMX’s Warehouse Receipt System (WRS) and integrated financing facilities.
The initiative introduces a transparent, market-based platform that replaces the traditional single-buyer model with a system driven by price discovery, competition, and efficiency — empowering farmers to gain more control over how their grain is priced, stored, and sold.
Under the agreement, GMAZ members will offtake grain from farmers using the ZMX WRS platform, which allows for aggregation, grading, certification, and secure storage of grain at over 30 certified warehouses nationwide. Farmers depositing grain into the system receive warehouse receipts, which are financial instruments they can use to access cash or inputs while awaiting sale.
ZMX CEO Collen Tapfumaneyi explained that farmers only need a minimum of 50 kilograms of grain to participate in the system.
“A communal farmer in any location can deposit their 50kg bag of grain in a certified warehouse. The grain is graded and issued with a warehouse receipt, which they can use to get financing or inputs,” Tapfumaneyi said.
To enhance liquidity, ZMX has arranged financing facilities through warehouse receipt discounting, allowing farmers to unlock value from stored grain while awaiting purchase. GMAZ Chairman Tafadzwa Musarara confirmed that millers will enter into forward contracts, ensuring guaranteed offtake for surplus grain at future prices that incorporate storage and carrying costs.
“This gives farmers the confidence to produce, knowing they can access markets and funding in a structured way,” Musarara noted.
Farmer leaders across the board welcomed the partnership as a significant milestone in improving market access and income predictability. Commercial Farmers Union (CFU) President Andrew Philp emphasized that while the initiative is promising, liquidity remains a key risk.
“With ZMX warehouse receipts now enjoying prescribed asset status, we hope pension funds will join banks in supporting this model,” he said.
“We thank the Ministry of Lands for supporting this transformation.”
Philp added that lowering production costs — among the highest in the region — remains a pressing concern that requires policy reform from the Ministries of Finance and Lands.
Zimbabwe Farmers Union (ZFU) chief economist Dr. Prince Kuipa described the ZMX platform as revolutionary, noting that it breaks the monopoly of the Grain Marketing Board (GMB) and introduces competitive, market-determined pricing.
“Farmers are now able to offer grain at their own prices while buyers place bids. It creates a healthy, open-market environment,” Kuipa said.
However, he stressed the importance of nationwide awareness and training campaigns, calling on extension officers and farmer unions to act as information conduits.
Zimbabwe National Farmers Union (ZNFU) President Monica Chinamasa commended the shift as a step toward healthy competition. She appealed to the Government to make idle GMB depots available as part of the effort to shorten the distance between farms and storage facilities.
“Reducing logistical costs and time is key to making this work for smallholders,” Chinamasa said.
As Zimbabwe continues to transition toward a formal commodity exchange model, stakeholders believe this partnership sets the foundation for long-term agricultural and economic growth. With structured trade, accessible financing, and efficient storage now within reach, Zimbabwean farmers are better positioned to thrive in an evolving agri-business landscape.
“It’s a delicate balancing act,” said Philp, “but with committed stakeholders, this is a giant leap toward real economic prosperity.”
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