Cabinet approves tobacco value chain transformation plan
LIVINGSTONE MARUFU
Cabinet has approved the tobacco value chain transformation strategy, it has been learnt.
The goal of the strategy is to increase value through beneficiation procedures.
The latest development was revealed by Information minister, Dr Jenfan Muswere.
“Cabinet has considered and adopted the update report on the tobacco value chain transformation strategy, which was presented by the Minister of Lands, Agriculture, FAisheries, Water and Rural Development, Dr Anxious Masuka,” Dr Muswere said.
He added: “The nation is informed that there are opportunities to increase the level of value addition and beneficiation of tobacco into cut rag and production cigarettes, from 2% of total tobacco produced to 30%.
Currently, seven cigarette manufacturers operate in Zimbabwe, with a combined production capacity of around 5bn cigarette sticks per annum. An additional cigarette manufacturing plant is under construction, with a current production of 1.6bn sticks per year.
“The plant will increase capacity by 50% in the first half of 2024,” Dr Muswere said.
It is understood that 98% of Zimbabwe’s tobacco is exported to over 60 destinations.
He also said the indigenous tobacco growers have come of age and developed expertise of growing quality tobacco.
“Over 52% of the tobacco is being grown by beneficiaries of the Land Reform Programme, and is generating 54% of annual value. Tobacco contributes substantially to economic development of the farmers, whose average gross earnings are over US$7 000 annually per grower.
“The nation is further informed that the number of growers has increased 17-fold since the commencement of the Land Reform Programme, indicating the success of the Land Reform programme, with over 85% of the tobacco currently being grown by the smallholder sector,” Dr Muswere said.
