How Village Business Units Are Revolutionising Rural Agriculture In Zimbabwe
Zimbabwe’s rural landscape, traditionally reliant on subsistence farming, is witnessing a transformative change through the establishment of Village Business Units (VBUs). These community-based agricultural ventures, registered as professional commercial entities, are pioneering a new era of rural development focused on sustainable agribusiness and economic empowerment.
The concept of VBUs stands at the intersection of agriculture and business, designed to generate income and improve livelihoods by engaging communities in horticulture, fisheries, and other agricultural activities. Each VBU encompasses approximately 1 hectare and is fully equipped with essential infrastructure, including piped water systems, washing slabs, cattle troughs, and fishponds. Crucially, they harness solar power to operate irrigation pumps, making them models of renewable energy use in agriculture.
According to Tinotenda Mhiko, CEO of Zimbabwe’s Agricultural and Rural Development Authority (ARDA), VBUs are part of an integrated government strategy involving several state institutions. This “whole-of-government approach,” under the guidance of the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, includes collaborations with the Zimbabwe National Water Authority and the Department of Irrigation to ensure effective water management, and partnerships with the Agricultural Marketing Authority to guarantee market access. ARDA specifically manages the agricultural production and business oversight of these units.
FFA Explainer Box: Village Business Units (VBUs) – Locally based agricultural enterprises registered as commercial companies that focus on profit-driven farming and allied activities, supported by government and development partners.
Registered under the Companies and Other Business Entities Act, VBUs can access credit facilities for operational and capital expenditures. This legal framework solidifies their position as professional agricultural companies and supports business sustainability. Each VBU operates on a robust business model, with assured market contracts for their produce, anchoring their long-term viability.
The government’s Rural Development 8.0 programme serves as the backbone for this initiative, positioning agricultural development as the primary driver for rural transformation. VBUs fall under the Horticulture Enterprise Enhancement Project (HEEP), a collaborative funding effort involving the Zimbabwean government, International Fund for Agricultural Development (IFAD), and the OPEC Fund for International Development. This project focuses on enhancing horticulture production, capacity building, value chain development, and advancing business skills.
Minister Anxious Masuka underscored in Parliament the government’s vision to expand the VBU model to 620 units by 2030, with a long-range plan to establish one VBU per each of Zimbabwe’s 35,000 villages. This ambitious target aligns directly with the National Development Strategy 1 (NDS1), which emphasises rural economic development, poverty reduction, and empowerment of women and youth.
A flagship example is the Sekusile Makorokoro VBU in Mangwe, Matabeleland South, launched under the Presidential Rural Development Programme in 2021. This unit has become a beacon of hope in a region typically challenged by arid conditions. It has attracted youth who had previously emigrated to South Africa and Botswana in search of employment. The availability of irrigated horticulture via solar-powered systems has provided a viable business alternative right at home.
The socio-economic impact is tangible: rural farmers engaged in VBUs are earning an average household income of US$260 to $312 per farming cycle—equating to approximately $65 to $78 monthly—depending largely on crop type, seasonality, and market dynamics. These earnings contribute to food security, nutritional support, and the empowerment of over 1.25 million youths and women engaged in these enterprises nationally.
Moreover, the VBU programme fosters resilience in rural communities by promoting self-reliance and stimulating agro-industrialisation, a critical component for Zimbabwe’s Vision 2030 goal of becoming an upper-middle-income economy. By integrating value chain development and marketing contracts, VBUs help farmers avoid market uncertainties, boosting confidence and investment in agricultural ventures.
Beyond economic benefits, VBUs are vital in addressing gender equity and youth unemployment—a major concern in Zimbabwe’s rural areas. Through training, skills development, and active participation, women and young people are becoming key drivers of rural agribusiness growth.
The Sekusile Makorokoro case illustrates how VBUs offer a replicable model adaptable across Zimbabwe. Its success provides a roadmap for policymakers and development partners to scale up initiatives incorporating modern renewable energy solutions while preserving local agricultural knowledge.
As climate variability continues to challenge traditional farming, the renewable energy-powered irrigation systems within VBUs offer sustainable solutions that mitigate risks and support consistent production cycles. This also positions such rural enterprises as resilient hubs contributing to national food and nutrition security.
In conclusion, Village Business Units represent an innovative fusion of agriculture, business, and community development that is transforming Zimbabwe’s rural economy. With government backing, strategic partnerships, and the commitment of local communities, VBUs hold the promise of inclusive agribusiness growth aligned with Zimbabwe’s NDS1 objectives. This model not only revitalises rural livelihoods but also empowers women and youth, ensuring sustainable development and a prosperous future for the nation’s rural heartlands.
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