Zimbabwe’s agricultural sector presents a lucrative opportunity for both local and international investors with government incentives. With fertile land, a favorable climate, and growing regional demand, the government has committed to revitalizing agriculture as a backbone of economic growth. To attract investment and stimulate productivity, Zimbabwe offers a range of agriculture-specific incentives—spanning tax reliefs, grants, and land lease schemes. This article outlines the key Zimbabwe agriculture incentives and farming subsidies in Zimbabwe available today.

1. Tax Breaks for Agricultural Investors

To stimulate investment in agriculture, the Zimbabwean government has established several tax incentives targeting agricultural businesses:

a) Income Tax Exemptions

Income generated from agricultural activities can enjoy special tax treatment under the Income Tax Act. Specific exemptions include:

  • Income from farming operations for the first five years for newly registered commercial farming businesses.
  • Capital allowances on farming equipment, machinery, and buildings—allowing faster depreciation write-offs.
  • Exemption from income tax for cooperatives and rural development organizations engaged in agriculture.

b) Customs Duty Rebates

Farmers and agribusinesses can benefit from customs duty exemptions or rebates on the importation of essential agricultural inputs. This includes:

  • Tractors and farm implements.
  • Fertilizers, chemicals, and pesticides.
  • Greenhouse materials and irrigation equipment.

This incentive significantly lowers startup and operational costs, especially for commercial and export-oriented agricultural ventures.

c) VAT Exemptions

Value Added Tax (VAT) is zero-rated or exempted for several farming-related products and services, including:

  • Basic agricultural commodities such as maize, wheat, and milk.
  • Supply of agricultural inputs like seed, fertilizer, and animal feed.

This tax treatment helps reduce the cost of production and encourages market competitiveness.

2. Farming Subsidies in Zimbabwe

The government provides various farming subsidies in Zimbabwe to enhance food security and support local farmers in scaling up production.

a) Presidential Input Scheme

This scheme targets smallholder farmers and offers free or subsidized inputs such as seed, fertilizers, and chemicals. While primarily aimed at rural farmers, commercial operators partnering with government programs may also benefit through contract farming models.

b) National Enhanced Agricultural Productivity Scheme (NEAPS)

NEAPS is a public-private financing initiative targeting medium to large-scale farmers. It provides access to inputs and working capital under flexible repayment terms, often tied to future harvests or commodity sales.

c) Smart Subsidies and Market Guarantees

To encourage specific value chains (like tobacco, cotton, and maize), the government provides guaranteed minimum prices and smart subsidies. These include partial funding for inputs or storage facilities, coupled with guaranteed offtake through state-owned enterprises like the Grain Marketing Board (GMB).

3. Land Lease and Tenure Support Programs

Zimbabwe’s land reform history has transitioned into structured tenure and leasing programs to ensure investor security while maintaining state land ownership.

a) 99-Year Lease Program

Foreign and local investors can apply for the government’s 99-year lease on agricultural land. Key features include:

  • Long-term tenure security.
  • Transferability with government approval.
  • Use of leasehold as collateral for financing (subject to financial institution acceptance).

The Ministry of Lands, Agriculture, Fisheries, Water and Rural Development manages the allocation process, with priority given to investors aligned with national food security or export growth priorities.

b) Joint Venture Farming Models

To leverage underutilized land and attract technical expertise, the government promotes joint venture farming models. Local landholders or leaseholders partner with investors, sharing profits, resources, and risks. These models are backed by government mediation to ensure fairness and long-term viability.

4. Access to Agricultural Grants and Funding Support

Various grant schemes and development funds exist to support infrastructure, innovation, and capacity-building in agriculture.

a) Agricultural and Rural Development Authority (ARDA) Grants

ARDA offers technical assistance and, in some cases, funding or joint project opportunities for investors in targeted crops, irrigation projects, or livestock development.

b) Zimbabwe Agriculture Development Trust (ZADT)

This trust, supported by international donors and government stakeholders, provides concessional loans and grants to small and medium agribusinesses. Its focus is on sustainability, inclusion, and market integration.

c) Youth and Women in Agriculture Grants

Through partnerships with NGOs and government agencies, specific grants are allocated to youth- and women-led agricultural startups. Investors working with or employing these groups may benefit indirectly from subsidized labor, training, or infrastructure support.

5. Export Incentives for Agribusinesses

Agricultural investors focused on export markets can also tap into Zimbabwe’s broader export promotion framework:

  • Export Revolving Fund: Access to foreign currency loans for exporters of agricultural commodities.
  • Duty Drawback Scheme: Rebates on duties paid for imported inputs used in the production of export goods.
  • ZIMTRADE Assistance: Exporters benefit from capacity-building, trade fair exposure, and matchmaking services provided by Zimbabwe’s national trade promotion agency.

Final Thoughts

The Zimbabwean government has made significant strides in making agriculture an attractive and profitable sector for investors. Through a combination of Zimbabwe agriculture incentives, farming subsidies, and structured land tenure systems, both local and foreign stakeholders can find secure, profitable entry points. While challenges such as financing and climate variability remain, these government programs provide a strong foundation for growth and innovation in the sector.

Investors are encouraged to consult with the Ministry of Agriculture and ZIMRA (Zimbabwe Revenue Authority) to understand the specific eligibility requirements and application procedures for each incentive. With the right strategy and support, Zimbabwe’s agricultural landscape offers rewarding opportunities for those ready to cultivate its potential.