Zimbabwe : Strong growth in sugar, horticulture propel agric sector
Zimbabwe’s agriculture sector is rebounding in 2025, with sugar production exceeding national demand and horticulture exports driving growth. Sugar output rose 4.56 percent, though domestic demand remains weak under high costs and taxes. Horticulture, backed by government and global financing, is expanding rapidly, with avocado and blueberry exports leading future \$2 billion potential.
Zimbabwe’s agriculture sector is experiencing strong growth, with sugar production exceeding national demand and horticulture exports gaining global traction, according to IH Securities’ 2025 Zimbabwe Agriculture Sector Report.
Notably, the Government expects agriculture to grow to a US$13,75 billion industry by 2025 after the sector in 2021 hit the initial target of US$8,2 billion, underpinned by improved productivity and production across all the sub-sectors.
Zimbabwe’s agriculture continues to recover in 2025, driven by improved rainfall, Government investment in infrastructure like dams, and a focus on high-value crops such as horticulture.
This resurgence is expected to significantly boost the economy, improve food security, and strengthen the economy, following a challenging 2024 marked by the El Niño-induced drought.
Agriculture is strategically key to Zimbabwe, generating billions in export earnings, contributing about 12 percent to gross domestic product and providing a source of income to millions across the country.
Sugar producers Hippo Valley and Triangle reported a combined output of more than 440 000 tonnes in the 2024/25 season, comfortably surpassing the national requirement of 320 000 tonnes.
“Exports for producers such as Hippo grew robustly in the first quarter, surging 364 percent to 15 711 tonnes,” the report noted.
While exports surged, domestic consumption has been under strain.
Local processors such as GoldStar and Tongaat have been selling sugar at US$900 per tonne and US$890 per tonne, respectively, while imports land at about US$800 per tonne.
The Government imposed a 30 percent surtax on imports to support local competitiveness, though this has pushed costs higher for major buyers.
IH Securities said, “The recently imposed 30 percent surtax on imports has helped local processors remain competitive, though major off-takers battle with additional costs such as the sugar surtax on beverages, which has led to reformulation of products and rendered demand weak.”
The sugar tax, introduced in 2024 at US$0,0010 per gramme, was halved in the 2025 National Budget to US$0,0005. While this offered some relief to beverage manufacturers, other pressures remain.
Delta Corporation, for example, faced a US$73 million tax bill from the Zimbabwe Revenue Authority, muting potential demand recovery.
Sugar cane production registered a modest 1,4 percent growth, from 6,62 million tonnes to 6,71 million tonnes in the 2024/25 season, according to the Government’s second round of the Crops, Livestock and Fisheries Assessment (CLAFA-2).
Total industry sugar production for 2024/25 is forecast to reach 232 482 tonnes, marking a 4,56 percent year-on-year increase. Looking ahead, the Second Agriculture Food Systems and Rural Transformation Strategy (AFSRTS-2) projects cane output could climb to 8,3 million tonnes by 2030, reflecting expectations of a rebound in demand.
While sugar has been a mainstay of the agricultural economy, the horticulture sector is emerging as a key driver of growth, supported by Government initiatives and international financing.
The Horticultural Enterprise Enhancement Project (HEEP), launched by the Government, is expected to channel US$66,5 million into supporting 71 000 smallholder farmers by 2031.
Global institutions have also stepped in, with the International Fund for Agricultural Development contributing US$37,1 million and the OPEC Fund for International Development providing US$15 million. IH Securities said, “This signifies the commitment to the growth of the market, with the export potential for horticultural products projected to reach US$2 billion by 2030.”
Avocados have become a flagship export product within the horticultural segment.
Though yields dropped 13 percent year-on-year in 2024, production has surged in recent years, climbing 164 percent from 47 370 tonnes in 2017 to 125 028 tonnes in 2024.
“This has made Zimbabwe the fifth largest producer on the continent,” the report highlighted.
Investments have followed the growth trajectory, with Tanganda Tea Company, one of the country’s largest agro-industrial firms, establishing an avocado oil extraction plant through a joint venture with Dutch firm Trade Link Global BV.
Blueberries continue to drive horticultural export earnings, with export revenues jumping 351 percent between 2020 and 2024, from US$11 million to about US$50 million.
Production rose by 8 percent to 8 580 tonnes in the 2024/25 season. Of this, 8 000 tonnes were exported to markets in Europe, the Middle East and Asia.
The area under cultivation expanded slightly, from 650 hectares in 2023/24 to 660 hectares, while yields improved 8 percent.
“Blueberry production is expected to increase from 11 000 tonnes in 2025/26 to 19 000 tonnes by 2030/31, with gross value increasing from US$48,4 million to US$74,1 million during this period,” IH said.
Overall, Zimbabwe’s agriculture sector is being pulled in two directions: sugar output is strong but weighed down by weak domestic demand and high costs, while horticulture is steadily expanding on the back of export demand and investment.
“From blueberry demand in China, to sugar pea demand in the United Kingdom, the export market for Zimbabwean horticultural products is projected to grow to a US$2 billion market by 2030.”
If sustained, such growth would diversify Zimbabwe’s agricultural earnings away from traditional crops and open new streams of export revenue, cushioning the economy against domestic consumption headwinds.
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Source : The Herald
