Staff Reporter

The Zimbabwe Mercantile Exchange (ZMX) has integrated 31 certified warehouses into its system, enabling the receipt of wheat and other bulk grains.

This follows the Government’s decision to liberalize grain trading, specifically for crops not earmarked for the Strategic Grain Reserve (SGR). The move aims to enhance market access for farmers and reduce the country's reliance on the Grain Marketing Board (GMB).

In its 2025 Budget Strategy Paper, the Ministry of Finance, Economic Development, and Investment Promotion outlined new policies regarding the marketing of agricultural produce.

"The Government will promote the use of the ZMX in marketing agricultural products to enhance farmer income and reduce post-harvest losses," the paper states.

 It further clarifies that "the GMB will focus on procuring grain solely for the SGR, while the rest of the produce will be traded by private entities through the ZMX."

This shift marks a significant departure from the traditional monopoly of the GMB in grain procurement, allowing farmers to sell their crops directly through the ZMX. By broadening market options, the initiative also aims to alleviate the fiscal burden on the Government.

ZMX CEO, Mr. Collen Tapfumaneyi provided insights into how the new system works.

 "The ZMX will provide a central warehouse receipt system and a spot market trading platform for winter wheat that is currently being harvested," he said.

According to Mr. Tapfumaneyi, the process begins when a farmer opens a ZMX account and books a delivery to the nearest certified warehouse.

“Once the grain is inspected, weighed, and graded, a warehouse receipt is issued electronically. The receipt will show details such as the tonnage, grade, and the farmer’s information, and it will be sent directly to the farmer's mobile phone," he explained.

“The warehouse receipt serves as an essential financial tool, acting as a certificate of title that can be used as collateral for loans from banks offering farmers much-needed post-harvest financing at lower costs," Mr. Tapfumaneyi added.

“Farmers using the ZMX system are charged handling and storage fees by the warehouse operator, with costs averaging US$0.10 per tonne per day. The actual rates, however, may vary depending on the operator. ZMX also runs a weekly commodities auction in addition to continuous trading, excluding weekends,” Tapfumanei added.

Furthermore, this new system is expected to revolutionize agricultural trading in Zimbabwe, providing transparency, convenience, and enhanced income opportunities for farmers. By streamlining the process, ZMX ensures that farmers can focus on production while the system handles the complexities of post-harvest management and market trading.