Zimbabwe plans $500m cash and grain reserve to offset El Niño
Zimbabwe is establishing a $500 million cash and grain reserve to mitigate the impact of an expected El Niño-induced drought on national food security. The government has also lowered its 2027 economic growth forecast due to the anticipated decline in agricultural output.
Why it matters
This highlights the severe economic and humanitarian challenges climate change poses to developing nations reliant on agriculture.
Zimbabwe plans to put together a $500m (R8.29bn) 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 $250m (R4.14bn) 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-tonne maize harvest in the 2027 crop season, nearly 30% lower than in 2026, mainly due to the forecast drought
Zimbabwe requires about 2.2-million tonnes of maize annually, including roughly 400,000 tonnes for livestock feed.
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