LIVINGSTONE MARUFU
“Remembering that you are going to die is the best way I know to avoid the trap of thinking you have something to lose. You are already naked. There is no reason not to follow your heart,” the late Apple CEO, Steve Jobs, once said.
Andrew Matibiri, the CEO of Tobacco Industry and Marketing Board (TIMB) takes this quote as an inspiration and a source of comfort as he prepares himself for the imminent departure from the tobacco sector regulator after 14 years at the helm.
Matibiri, who was appointed acting CEO in 2007 and made substantive CEO in 2009, will leave his position next week.
His contract cannot be renewed as he has served as CEO of TIMB for more than 10 years, according to the Public Entities Corporate Governance Act.
In his tenure, Matibiri experienced mixed fortunes.
On one hand, the sector experienced good times when it delivered one of the best tobacco output.
But, on the other hand, farmers have been left at the mercy of tobacco merchants compounded by existing forex retention levels that are not in sync with the cost of production.
Matibiri told Business Times that resolving the foreign currency retention issues would be key in the future of tobacco production in the country.
Currently, tobacco farmers are getting 60% of their earnings in foreign currency and the balance in local currency.
The farmers, however, want a forex retention threshold of 80%.
“The issue of forex retention is really a matter for monetary, as well as fiscal authorities and I am also confident that the monetary authority will review forex retention in a manner that will ensure the long-term viability and sustainability of the tobacco sector. This will improve confidence in farmers and will bring back the appetite to grow the golden leaf,” Matibiri said.
His remarks come at a time when tobacco farmers are frustrated to an extent that most of them are contemplating quitting the once lucrative sub-sector.
Farmers claim a tobacco cartel was unfairly controlling and influencing the payment system.
Matibiri joined TIMB in 2005 at the height of the land reform programme when the national production was going down rapidly. There was also an increase in the number of tobacco farmers, especially small scale.
“The institution, and the tobacco industry as a whole, had been set up and geared to serve about 1500 large-scale farmers. A lot of work had to be put in to correct this as just about all the tobacco-producing beneficiaries of the land reform programme were not aware of the regulations for the production and marketing of tobacco,” Matibiri said.
He said his greatest experience was when the sector recorded a new high of 259m kilogrammes in 2019, breaching the 2000 record of 237m kgs.
In 2018, the sector recorded 252m kgs.
Having seen that production had improved, Matibiri said, the TIMB resolved to decongest the auction floors by allowing the setting up of several auction floors across the country.
“Congestion was the order of the day and more sales points had to be licenced, the TIMB itself had to de-centralise to bring its services closer to the newly-resettled farmers, funding mechanisms had to be developed to ensure full recovery of the industry and the strengthening of the central payment system and the stop order system had to be quickly established,” Matibiri said.
He said his job was, however, made easier by the invaluable support he got from his dedicated staff members, board members, the parent ministry, other national agencies and his family.
Some of his achievements include the construction of the TIMB headquarters, the setting up of the contract production and marketing system, stakeholder compliance regulations and the enhancement of the participation of indigenous players in the tobacco value chain.
With these in place, Matibiri said the industry was now more stable now than it was 15 years ago.
However, there are very strong lobbies against tobacco production and consumption the world over.
Despite these anti-tobacco campaigns, Matibiri, said the future of tobacco production in Zimbabwe was bright.
He said international buyers have many other markets from which they can buy cheap filler tobacco.
But, because of the high quality of tobacco produced in Zimbabwe, international buyers continue to flock the country.
He however, bemoaned the manipulation of the contract farming system, which is now affecting production.
Contract farming in Zimbabwe is now accounting for 95% of the total production with the auction system accounting for 5%.
This has threatened the viability of the sector as tobacco merchants are said to be manipulating prices to get maximum profits.
Matibiri believes the survival of the auction system was critical as prices derived from it determine the floor or minimum prices at contract sales.
In addition, the auction system is the initial marketing avenue for any new producer and it should be premised on the farmer being able to fund his or her production venture or being able to access funding from a financial institution.
He said the future of the auction system lies with the establishment of a strong local funding system that is fully cognisant of the profile of the current tobacco farmer.
The Zimbabwean tobacco marketing set up is unique, by being a combination of an auction and a contract system.
Current studies and assessments of the tobacco value chain, Matibiri said, would hopefully come up with a sustainable mechanism to ensure the empowerment of the auction system.
Matibiri said his sources of inspiration were rooted in his upbringing and the satisfaction that he gets from getting the job done.
He confesses, however, that the job is not always done to his personal satisfaction and pride.
Matibiri said being passionate and taking some of the issues personally have helped bring out the best ideas and actions.
Born in Old Highfield, Harare, he was employed by the Tobacco Research Board (TRB) as a plant breeder and rose through the ranks to the post of Senior Biotechnologist and Head of Department and Co-ordinator for the Crop Production Group (Soil Chemistry, Agronomy Physiology, Agricultural Engineering and Biotechnology departments).
He left the TRB in 2002 and joined FSI Agricom Holdings as the General Manager (Tobacco Division).
Following the demise of FSI Agricom Holdings in 2004, he co-formed Freshbreeze Marketing (Pvt) Ltd, a company that bought, processed and exported paprika.
In 2005, he was later head hunted by the TIMB to become its Technical Services Executive.
After leaving TIMB, Matibiri has not yet made up his mind on what he wishes to do next.
He said he would take a little time off and works on improving the productivity of his 100-hectare plot where he grows tobacco, maize and run a poultry project as he sweats his impeccable curriculum vitae: a Bachelor of Science Agriculture (Crop Science with Research Bias) and Master of Philosophy Agriculture (Crop Science) degrees from the University of Zimbabwe and a Doctor of Philosophy (Horticulture) degree from Wye College, University of London.
Matibiri is the current chairman of the Blackfordby College of Agriculture, the Gold Leaf Warehousing (Pvt) Ltd and Premier Service Microfinance (Pvt) Ltd.
Matibiri enjoys travelling, especially around the countryside and anything to do with agriculture.
The TIMB boss also enjoys playing a little guitar and listening to real folk music, local and international.
TIMB failed to run the e-marketing system which had been adopted to curb price collusion by buyers.
Matibiri said e-marketing failed as the bidding processes were too slow and could not cope with the pressure involved in the selling of tobacco.
However, he said other processes are now digital.
TIMB boss said e-marketing is normally used in a season where there are few quantities of tobacco and not in a good season like the current one.
Tobacco experts said the e-marketing process was dumped because it gave farmers a fortune as it was difficult to manipulate hence tobacco merchants called for its abolition.
Matibiri said the board has not studied the digital platform to that level.
One thing that he missed is reading and hopes to be able to do more of it now.
The outgoing TIMB chief says he enjoyed reading Rich Dad Poor Dad by Robert T Kiyosaki and currently he is reading Company of One – Why Staying Small Is the Next Big Thing for Business by Paul Jarvis.
