Zimbabwe creates climate reserve fund

Zimbabwe's government plans to create a 500 million dollar reserve to help manage the impact of El Niño, a climate pattern that can cause extreme weather events. The funds will be used to support food security and respond to potential crop failures.

Funds to be allocated in 2027 budget

The 500 million dollar reserve will be split into 250 million in cash and 250 million for purchasing cereals. This allocation is part of the 2027 budget, which is expected to be announced in November, and aims to ensure the country can quickly respond to a poor harvest.

Anticipated drop in maize production

Zimbabwe expects maize production to fall to 1.6 million tonnes in 2027, a nearly 30 percent decrease from 2026. Annual demand for maize is around 2.2 million tonnes, with 400,000 tonnes used for animal feed, highlighting the importance of maintaining sufficient reserves.

Preparations started months earlier

Efforts to prepare for El Niño began several months before the announcement. In August, the Minister of Agriculture set a goal of accumulating 450,000 tonnes of strategic reserves by the end of 2026, with 200,000 tonnes of maize already purchased from local farmers.

Import duties reduced for food items

On October 2, the Minister of Finance announced the removal of import duties on certain food items to ease imports in case of shortages. However, details about which products are affected, how long the measure will last, and how it will be implemented were not provided.

El Niño impacts economic forecasts

El Niño has led Zimbabwe to lower its economic growth forecast for 2027 from 5 percent to 3.5 percent. This reduction reflects the anticipated negative effects of the climate phenomenon on agriculture, which is a key sector of the economy.

Government identifies El Niño as major risk

A budget document published in July identified El Niño-related drought as the main risk to harvests, rural livelihoods, and hydroelectric power. The government plans to focus on early preparation, strengthening reserves, and providing support to affected households.