Zimbabwe Builds US$500 Million El Niño Fund

Zimbabwe is assembling a US$500 million fund to protect the country against El Niño-related drought and food shortages.

The package combines US$250 million in cash with another US$250 million worth of grain reserves. Finance Ministry Permanent Secretary George Guvamatanga confirmed the preparations.

He said the government had already begun purchasing grain from local farmers. The country’s strategic reserves now contain more than 200,000 metric tonnes of maize.

Guvamatanga made the announcement during an online media briefing on Wednesday, 14 October. He spoke on the sidelines of the 2026 IMF and World Bank Annual Meetings in Bangkok, Thailand.

Government Prioritises Local Farmers as Grain Stocks Grow

The government prefers buying maize locally rather than relying on imports. According to Guvamatanga, the approach will strengthen food security while creating a reliable market for farmers.

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

He emphasised that domestic purchases would support both national reserves and the agricultural economy.

“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.”

With stocks continuing to grow, the government believes additional maize imports may not be necessary for its strategic reserves.

US$250 Million Cash Component to Support Drought Response

The planned fund will combine financial resources with physical grain supplies. Its reserves will include 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,” he said.

Guvamatanga explained that the cash component would finance emergency interventions. Meanwhile, stored grain would provide a buffer against potential food shortages.

“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.”

He expressed confidence in the country’s preparations, although the eventual impact will depend on the weather conditions.

He added: “We think we are very much prepared this time around to deal with it depending on how severe it will be.”

El Niño occurs when surface waters warm across the central and eastern tropical Pacific Ocean. The phenomenon typically develops every two to seven years and can persist for nine to 12 months.

The current event has been described as a “super El Niño” because temperatures have reportedly climbed at least 2°C above average. Some daily anomalies have exceeded 3°C.

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