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US$500m for silo expansion to secure harvests

Theseus Shambare

OVER US$500 million has been set aside for the modernisation of over 20 grain silos to increase the country’s storage capacity by an additional one million tonnes, up from the current 750 000 tonnes.

Increased grain storage capacity will help Zimbabwe achieve greater food security through a reduction in post-harvest losses.

The initiative comes at an ideal time, especially after the country achieved its highest-ever wheat harvest of over 560 000 tonnes during the just-ended winter wheat season. Further, Zimbabwe is projected to harvest more than 3,5 million tonnes of cereals during the 2024/2025 summer cropping season.

Under the expansion programme, 14 state-of-the-art silos are under construction at Grain Marketing Board (GMB) depots in Kwekwe, Lupane, Rutenga, Mvurwi, Mhangura, Timber Mills and Mutare. Overall, the initiative targets 21 depots nationwide.

Chief director for engineering, mechanisation, post-harvest agro-processing and soil conservation in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development Engineer Edwin Zimunga told The Sunday Mail: “Significant work is being done in upgrading the silos. Kwekwe is at 65 percent completion; expecting to be commissioned in March 2025. Mutare is scheduled to be commissioned in April. And every month thereafter, we will be commissioning more silo depots.”

The country’s increased production and productivity, he said, require modern infrastructure for preservation and storage of harvests.

In 2020, Eng Zimunga said, the Cabinet gave a directive to increase the strategic grain reserve.

“So, an ambitious expansion and modernisation project was set out to increase this capacity by a million tonnes. The development meant a huge investment, a figure of around half a billion dollars.”

To achieve the target, the Government has roped in multiple                              partners.

“We have come up with various innovative ways of financing construction projects in                                                   Zimbabwe. One of them has been the Agricultural Mechanisation Development Alliance framework, where we have brought in and crowded in the private sector in various forms and sizes to fund investments in agriculture.

“There are people who are bringing in financing either as concessionary loans, grants, either as prescribed assets under pension fund schemes or directly from the fiscus,” he said.

Also, there are negotiations for financial closure, which the authorities are undertaking with AFC Trade Catalyst Africa and the African Import and Export Bank for construction of the silos.

“We have had a plethora of financing options, and I can guarantee the nation that this has been one of the most profitable negotiated construction schemes that the country has ever seen in terms of infrastructure development,” said Eng Zimunga.

The upgrade will see depots also have modern grain dryers and communication technology systems to ensure a smooth flow of deliveries and payments to farmers.

The authorities will also ensure that farmers from all parts of the country benefit from the enhanced storage.

“This is a monumental undertaking that will significantly bolster our ability to store and preserve grain. These are strategically positioned as Zimbabwe’s gain points into the African Free Trade Continental Area, where we are going to do the trade from each particular district,” he said.

Presently, GMB’s total holding capacity stands at just over 2 million tonnes, out of which only 750 000 tonnes of grain can be stored.

Most of the grain is kept under less secure tarpaulin shelters.

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