Disquiet over lack of local tobacco funding
LIVINGSTONE MARUFU
The government has raised concerns over the lack of local funding in the tobacco industry, warning that a significant portion of earnings is flowing out of the country at a time when foreign currency is crucial for economic stability.
Authorities believe that localising the funding of tobacco, commonly referred to as the “golden leaf,” would help retain a substantial share of foreign exchange within Zimbabwe.
To achieve this, the government launched the Tobacco Value Chain Transformation Plan (2021-2025), which aims to localise at least 70% of tobacco production costs by 2025.
Speaking at the official opening of the 2025 tobacco marketing season yesterday, Lands, Agriculture, Fisheries, Water, and Rural Development Minister Dr. Anxious Jongwe Masuka expressed concern over the slow progress in achieving this goal.
“Regarding these objectives, much has been achieved, but much more needs to be done. The plan aimed to accelerate the localization of tobacco funding to 70% of production costs by 2025. However, progress has been minimal, and the promised US$60m seed financing from 2021 is still not in place. That said, some financial institutions are now actively funding the industry. The new title deed program should provide additional momentum for this critical aspect of the plan,” Dr. Masuka said.
Tobacco plays a significant role in Zimbabwe’s economy, contributing to over 50% of agricultural exports, 30% of total exports, and nearly 10% of GDP. Dr. Masuka emphasized that the sector remains critical in Zimbabwe’s journey toward Vision 2030, which aims to establish a prosperous and empowered upper-middle-income society.
The Tobacco Value Chain Transformation Plan also seeks to increase productivity and raise tobacco production from 262 million kg to 300 million kg by 2025.
It also aims to diversify farmer income sources by boosting alternative crop production to 25% of total farmer earnings and enhance value addition and beneficiation, increasing local tobacco processing into cut rag and cigarettes to 30% of total production, up from 2%.
Dr. Masuka noted that the industry has made significant strides in achieving some of these objectives:
“A record 297 million kg was produced in the 2022/2023 season, though drought caused a drop to 232 million kg in 2023/2024. For the current season, projections exceed 280 million kg. The number of contract selling points grew from 41 to 46, peaking at 90 in 2022, while Class A buyers increased from 24 to 42 and contractors from 26 to 36. Industry data also suggests that alternative crops now contribute 15.03% to farmer incomes, though still short of the 25% target. Additionally, value addition has risen from 2% to 7% during the plan period.”
Speaking at the same event, Tobacco Industry and Marketing Board (TIMB) chairman Patrick Devenish announced the introduction of a biometric grower management system to address longstanding challenges in Zimbabwe’s tobacco sector.
“This innovative system will protect farmers, curb side marketing, eliminate fraud, and restore transparency. It will capture biometric data, linking each farmer’s unique grower number to fingerprints, GPS coordinates of their household and farm, and demographic details. This ensures only genuine farmers participate in the market. Growers are encouraged to register at licensed tobacco selling points and have their fingerprints captured for a seamless 2025/26 season,” Devenish said.
He also stressed the need for environmental responsibility and sustainability, urging farmers to adhere to marketing regulations such as submitting production estimates on time, using TIMB-registered transporters and avoiding unauthorized individuals on the auction and contract sales floors.
The first bale of the season sold for US$4.65 per kg, slightly lower than the US$4.92 per kg recorded during the same period last season.
