Zimbabwe plans to create a $500 million reserve over drought threat — TimesLIVE

The Zimbabwean government plans to create a $500 million cash and grain reserve to limit the impact of the expected El Niño-induced drought on the country’s food security. Finance Minister Mthuli Ncube said this, TimesLIVE reports.

Funds to be included in the budget

In the draft state budget for 2027, which is due to be presented next month, the authorities intend to allocate $250 million for a cash reserve and another $250 million for grain purchases. According to Ncube and ministry representatives, this stockpile should help the country cope with food security risks.

The government forecasts that the maize harvest in the 2027 season will amount to 1.6 million tonnes. This is nearly 30% less than in 2026; the projected drought was named as the main reason.

More current news is available on the UA.News Telegram channel Telegram.

The country’s maize needs

Every year, Zimbabwe needs approximately 2.2 million tonnes of maize, including about 400,000 tonnes for livestock feed. Ncube also said that the government has already purchased approximately 200,000 tonnes of maize from local farmers for strategic reserves.

In 2024, Zimbabwean authorities declared a national disaster after an El Niño-related drought, when millions of people needed food assistance. El Niño is the warm phase of a natural climate cycle that affects weather conditions in different regions of the world and can disrupt rainfall patterns.

Due to El Niño’s expected impact on the agricultural sector, the government also lowered Zimbabwe’s economic growth forecast for 2027 from the initial 5% to 3.5%.