US$500m El Niño protection fund on cards

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GOVERNMENT is building a US$500 million El Niño protection fund, comprising US$250 million in cash and US$250 million worth of grain reserves, as Zimbabwe steps up preparations for a potentially severe drought in the 2026/27 agricultural season.

The fund is expected to provide a financial and food-security buffer against the anticipated impact of the adverse weather phenomenon, with the Government prioritising the purchase of maize and other grains from local farmers to strengthen strategic reserves and support domestic agricultural production.

El Niño is a naturally recurring warming of surface waters across the central and eastern tropical Pacific Ocean. It typically develops every two to seven years and can last roughly nine to 12 months, according to experts.

However, this year’s El Niño is not ordinary and has been dubbed “super El Niño,” and it has rattled various parts of the world with warnings that it could be among the severest in years.

Permanent Secretary in the Ministry of Finance, Mr George Guvamatanga, disclosed the measures during a wide-ranging online media briefing on the sidelines of the 2026 IMF/World Bank Annual Meetings in Bangkok, Thailand, yesterday.

He said the Government had already started procuring grain and had accumulated more than 200 000 metric tonnes of maize in its strategic grain reserves, raising prospects of avoiding imports to replenish the stocks.

“We are not planning to start buying maize next year. We have already started buying maize and I think already we have got over 200 000 tonnes of maize in our strategic grain reserve,” he said.

Mr Guvamatanga said buying locally produced grain remained the Government’s preferred option, as the strategy would simultaneously build the country’s food-security buffer and sustain economic activity by providing a market for local farmers.

“We are buying maize from local farmers, which is actually our preference, rather than importation. We are hoping that we should be able to gather enough strategic reserves of grain from local farmers and support the economy.”

“And with where we are now, we actually believe that there might not be need for us to import any maize to support the strategic grain reserves,” said Mr Guvamatanga.

The US$500 million protection fund will comprise two components – US$250 million in readily available cash to finance interventions and US$250 million in grain reserves, including maize, small grains and wheat.

“We have been buying grain, small grains, maize, and wheat from local farmers and we expect by the end of the year that we will be sitting on a total El Niño protection fund of half a billion,” said Mr Guvamatanga.

“But I need to be very clear here that of the half a billion, US$250 million is cash and US$250 million will be grain, so that will give us a very strong start into the year, but we will also make further provisions in the 2027 budget for further funding to support the adverse impact that will be brought forward by the El Niño phenomenon.

“But we think we are very much prepared this time around to deal with it depending on how severe it will be,” he added.

Finance Minister, Professor Mthuli Ncube, weighed in saying the cash component would provide Government with resources to respond to emerging needs from the beginning of next year, complementing allocations to be made in the 2027 National Budget.

“Maybe just to add on the acquisition of grain, but on the broader El Nino response, we want to make sure that as we go into the 1st of January next year, we have about US$250 million in terms of back pocket that we will then utilise to respond to the El Nino phenomenon.

He said funds will also be allocated within the 2027 budget.

The preparations come as Zimbabwe braces for a potentially difficult 2026/27 rainy season, with forecasts pointing to below-normal rainfall, frequent dry spells and warmer-than-normal temperatures across much of the country.

The National Climate Outlook, covering October 2026 to March 2027, was developed following the regional climate outlook issued at the 33rd Southern African Regional Climate Outlook Forum held in Swakopmund, Namibia, from August 25 to 28.

The January-to-March 2027 period is also expected to remain relatively dry, particularly in the northern and eastern parts of the country, increasing the risk of crop failure and pressure on household food supplies.

Government is pursuing complementary interventions, including crop-specific expert guidance, improved water management and support for both irrigated and rain-fed farmers, to reduce the potential impact on agricultural production.

The country is also targeting one million hectares under the Pfumvudza/Intwasa programme this season, as authorities seek to strengthen household food security under drier conditions.

Beyond immediate drought preparedness, Government intends to build strategic grain reserves of 450 000 tonnes through successive seasons, supported by the country’s new artificial intelligence-powered silos.

The planned reserve expansion, backed by the El Niño protection fund, is intended to strengthen the country’s capacity to respond to food shortages without relying excessively on emergency imports.

The cash-and-grain arrangement provides two complementary forms of protection: physical grain stocks that can be deployed to meet food needs and the financial resources that can support a broader response as the severity of the drought becomes clearer.

However, the scale of the eventual impact will depend on rainfall patterns during the season, the performance of agricultural production and the resources required to support affected households and farmers.

Source: US$500m El Niño protection fund on cards – herald

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