Treasury nullifies Agriculture Ministry’s grain import levy – calls it legally invalid

THE Ministry of Finance has declared as invalid a grain import levy imposed on millers by the Agriculture Ministry through Statutory Instrument (SI) 87 of 2025 and urged authorities to immediately repeal it.

A letter dated March 3, from the Ministry of Finance’s permanent secretary George Guvamatanga to Chief Secretary to the President and Cabinet Martin Rushwaya, warned that the SI not only violates the Zimbabwean Constitution but exceeded legal authority of the Agriculture Ministry and Agriculture Marketing Act (AMA) through which it was promulgated.

The SI sought to introduce levies on grain, oilseeds and related agricultural products, a move Grain Millers Association of Zimbabwe (GMAZ) said would result in price hikes.

Alarm was raised on proposed charges of as much as US$40 per metric tonne on maize and US$50 per metric tonne of soya beans amid government fears of inflation.

“It should be noted that apart from being legally invalid, such levies or duties on imports will have serious negative inflationary consequences at a time when government has successfully controlled inflation and brought down the annual rate to single digits for the first time in almost 30 years,” reads Guvamatanga’s letter.

“The macro-economic and policy consequences of such interventions need to be carefully reviewed, and wide consultations held, before any implementation.”

The Finance Ministry proceeded to request the Office of the President and Cabinet to direct the Agriculture Ministry to repeal SI 87 of 2025 and refrain from introducing similar measures.

SI 87 of 2025 had remained in operation despite the fact that the Attorney General’s Office had declared it unconstitutional in a legal opinion sought by the Finance Ministry and dated September 23, 2025.

The opinion found that the SI was: “Ultra vires of Section 298(2) of the Constitution, not authorised under Section 37(1) of AMA which permits levies on agricultural products produced in Zimbabwe and that an import duty could only be levied under the Customs and Excise Act.”

Despite the Attorney General advising that the SI be immediately repealed, the Agriculture Ministry sought to extend its lifespan beyond March 31, 2026 leading to a standoff between it and the Finance Ministry.

Copies of the correspondence were sent to Finance Minister Mthuli Ncube, Deputy Finance Minister David Mnangagwa, Agriculture Minister Anxious Masuka and Attorney General Virginia Mabhiza among other senior government officials.

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