Seed firms crippled by Zimbabwe govt debt

Zimbabwe's seed industry is teetering on the edge of collapse as the government grapples with ballooning debt, having failed to pay seed suppliers nearly US$270 million over the past three farming seasons.

The debt, stemming from flagship state-run input support programmes such as Pfumvudza and the Presidential Input Scheme, has left leading seed companies, including Seed Co, facing a deepening liquidity crisis.

Confirming the staggering figure, Lands, Agriculture, Water, Fisheries and Rural Development Minister Dr Anxious Masuka warned of potential fallout for future harvests.

"Seed grower payments are behind and may affect future volumes, as farmers shun seed production," Dr Masuka said. "The current debt for the Presidential Inputs Scheme programme for the past three seasons is US$269,636,648.47."

From the most recent season alone, Seed Co is reportedly owed around US$13.31 million.

The government's continued failure to settle its debts has left seed producers burdened with financial strain, forcing many to rely on expensive bank loans to maintain operations. Industry leaders caution that prolonged delays could severely undermine the quality and availability of certified seed for upcoming farming seasons.

"We're in an unsustainable situation," said an executive from one of the affected companies. "Without timely payments, we can't procure materials, pay growers, or invest in next season's production. The government must urgently implement a clear payment plan or adopt innovative financing solutions to prevent collapse."

The non-payment dates back to the 2022/2023 season and includes the 2023/2024 and current 2024/2025 seasons. Analysts say the compounding arrears are now threatening to destabilize one of the most critical links in Zimbabwe's agricultural value chain.

Although the government has acknowledged the debt, an ongoing liquidity crunch has delayed payments not only to seed companies but also to other key service providers in the agricultural sector. This comes at a time when Zimbabwe's food security heavily relies on subsidized inputs to smallholder farmers.

"The continued viability of seed companies is crucial for national food security," the executive added. "If we fail to produce adequate seed due to lack of funding, the entire crop production calendar risks being thrown into disarray."

The crisis has amplified calls for reform in the way government contracts and pays agricultural suppliers. Experts suggest the state should consider private-public partnerships, partial guarantees, or even debt securitization to ease the burden on suppliers and restore confidence in input distribution schemes.

As the 2025 planting season approaches, stakeholders warn that failure to resolve the deadlock could have lasting consequences—not just for seed producers, but for Zimbabwe's entire agricultural sector.