ZMX, GMAZ Sign Landmark 5-Year MOU to Streamline Z...

ZMX, GMAZ Sign Landmark 5-Year MOU to Streamline Zimbabwe’s Grain Trade

Witness Runodada Zim Now reporter

In a major stride toward transforming Zimbabwe's agricultural commodities market, the Zimbabwe Mercantile Exchange (ZMX) and the Grain Millers Association of Zimbabwe (GMAZ) have signed a five-year Memorandum of Understanding (MOU) aimed at aligning structured trade systems with national value chain development.

The strategic partnership will focus on grain offtake through forward contracts, providing much-needed demand certainty for millers while unlocking pre-sale financing opportunities for farmers, traders, and aggregators.

The move is expected to stabilize the market and encourage increased local grain production.

“Today marks a significant step forward in our shared efforts to transform Zimbabwe’s agricultural commodities market,” said ZMX Chairman Dereck Odoteye during the signing ceremony.

Explaining the mechanics of the new system, ZMX CEO Collen Tafumanei highlighted the importance of structure in a seasonal agricultural economy. “As you know, most of our production is seasonal. So if we produce a million tons all at the same time, it’s not practical for that to be brought at once, milled, and then delivered to the market. There has to be a structured way of taking that grain,” he said. Under the framework, grain delivered to ZMX-certified warehouses will be converted into warehouse receipts, which can then be traded or used to secure financing.

This market-based system allows millers to secure access to grain in advance by purchasing forward contracts, while providing farmers with financial liquidity before actual grain delivery. The initiative is expected to reduce reliance on imports and strengthen domestic supply chains.

GMAZ Chairman Tafadzwa Musarara emphasized the urgency of supporting local primary production. “We can confirm without hesitation that relying on imports for our operation is difficult, unpredictable, and therefore the need to promote local primary production is not only noble but the most viable option for our business,” he said.

Musarara also offered reassurance about the outlook for maize availability. “We want to assure the consumers that from now on and until the next harvest in 2026, maize may be abundantly available and must not panic,” he said, signaling optimism for food security in the near term.