GMB urged to diversify revenue streams amid payment delays

SAMANTHA MADE

Farmer representative groups have called on the Grain Marketing Board (GMB) to develop multiple revenue streams beyond its reliance on treasury allocations, citing persistent payment delays that are undermining farmer confidence and disrupting agricultural operations.

Producers who deliver their grain to the GMB have reported severe cash flow constraints due to late payments, prompting many to explore alternative markets that offer quicker settlements.

Zimbabwe Commercial Farmers Union president Dr. Shadreck Makombe emphasized that farmers now have more options when it comes to marketing their produce.

“Farmers are free to sell the maize to any market of their choice, except those on the Presidential Inputs Scheme or those contracted to deliver to the Grain Marketing Board. Besides those ones, any other farmer can sell wherever he wishes,” said Dr. Makombe.

He stressed the need for the GMB to secure independent funding sources or, alternatively, ensure timely disbursements from the Treasury to facilitate prompt payments.

“GMB should have other monies from other sources rather than Treasury so that they can pay farmers as soon as they deliver their maize. They should have their own free money to fund grain deliveries, or the fiscal authorities should give them money on time so that they can pay farmers,” he added.

Makombe noted that while some improvements are expected in GMB’s payment timelines, many farmers are no longer compelled to deliver to the board unless contractually obligated.

Supporting this view, agriculturalist and former Zimbabwe National Farmers Union executive Dune Edward said the issue of delayed payments has become a perennial concern, undermining farmer operations.

“Late payment issues have been a perennial challenge with farmers who traditionally deliver their products to GMB. Our farmers have become so resilient to this culture and are very unlikely to be prejudiced in the process, as this is not a normal business culture. The trends likely to happen in response are varied and expected,” Edward said.

He advised farmers delivering to the GMB to diversify their income sources or seek alternative markets.

“Those farmers insisting on getting cash from produce delivered to GMB should be strong in cash flows from other farm enterprises, or they can source alternative markets which pay promptly,” he said.

Zimbabwe Farmers Union secretary-general Paul Zakariya acknowledged that the GMB remains an attractive option due to guaranteed pricing and government support, but warned that delayed payments pose a serious risk, especially to those participating in state-backed schemes such as Pfumvudza and the Presidential Inputs Programme.

“Delivering to the GMB remains attractive due to guaranteed pricing and government support. However, the risk of delayed payments understandably discourages many farmers. Therefore, unless there are clear guarantees or reforms, many may choose alternative markets. This may not be desirable since Pfumvudza and Presidential Scheme growers are directed to deliver to GMB,” Zakariya said.

He stressed the importance of liquidity at the farm level, particularly given escalating maintenance and input costs.

“To regain farmers’ confidence, the GMB could consider several initiatives: introduce a pre-payment or part-payment system at delivery to ease immediate financial pressures, improve transparency by publicly committing to specific payment timelines and honoring them, and leverage digital platforms for faster, traceable payments. GMB can also engage with financial institutions to provide bridge financing, using GMB receipts as collateral,” he added.

Despite a cabinet report highlighting a significant rise in maize output—attributed to favorable weather and enhanced support programs—payment delays from the GMB continue to pose a serious threat to the sector’s stability and growth.

As Zimbabwe’s agricultural sector grapples with these challenges, the GMB’s ability to implement robust financial reforms and ensure prompt payment will be critical to maintaining farmer trust and achieving national food security targets.

The GMB’s payment system remains a pressing issue requiring immediate attention from policymakers and stakeholders across the agricultural value chain.

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