Zimbabwe plans $500 million cash, grain reserve to offset El Niño
The Zimbabwean government is allocating $500 million in its 2027 budget to establish cash and grain reserves to combat food insecurity caused by El Niño. This move follows a significant decline in projected maize harvests and previous national disasters related to drought.
Why it matters
It highlights the ongoing struggle of African nations to manage climate-induced economic instability and food security in the face of extreme weather patterns.
HARARE, Oct 14 (Reuters) – Zimbabwe plans to put together a $500 million cash and grain reserve to limit the impact of an expected El Niño-induced drought on national food security, Finance Minister Mthuli Ncube said on Wednesday.
The government would make provision for $250 million cash and an equal amount for grain purchases in the 2027 national budget, due to be presented next month, Ncube and ministry officials said during a briefing.
The southern African country has projected a 1.6 million metric ton maize harvest in the 2027 harvest season, nearly 30% lower than in 2026, mainly due to the forecast drought.
Zimbabwe requires about 2.2 million tons of maize annually, including roughly 400,000 tons for livestock feed.
In 2024, Zimbabwe declared a national disaster after an El Niño-induced drought left millions needing food aid.
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