Govt targets 50% ESG compliance in tobacco industry as ban fears mount

CLOUDINE MATOLA

Government is targeting to raise environmental, social and governance (ESG) compliance in the tobacco industry to 50% by 2030, up from the current 25%, as it moves to avert a potential ban on Zimbabwean tobacco leaf in key export markets, Business Times can report.

The push follows warnings that failure to align the sector with global sustainability standards could result in Zimbabwean tobacco being shut out of international markets.

Speaking to Business Times on the sidelines of the national validation workshop for the Tobacco Value Chain Transformation 2 (2026–2030), Chief Director in the Department of Research and Specialist Services (DR&SS) in the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development, Leonard Munamati Kutywayo, said ESG compliance has become a strategic priority to safeguard market access.

He said issues related to environmental protection, social responsibility and corporate governance are now central to ensuring Zimbabwe’s tobacco remains acceptable to global buyers.

Kutywayo said authorities would implement deliberate measures to curb deforestation linked to tobacco curing, eliminate child labour, and promote decent wages and fair labour practices across the value chain, in line with the transformation strategy.

Government has outlined seven strategic interventions under the tobacco industry transformation plan. These include localisation of tobacco financing, value addition and beneficiation, market and trade development, enhancing productivity and farmer resilience, ESG compliance and traceability, institutional strengthening and policy coordination, as well as research, development and innovation.

Tobacco Industry and Marketing Board (TIMB) chief operations officer Blessing Dhokotera said the regulator is intensifying efforts to promote sustainable tobacco production as global buyers increasingly demand ethically sourced leaf.

He noted that Zimbabwe is competing on the same platform with countries such as Brazil, which have already made significant progress in embedding sustainability standards within their tobacco industries.

Dhokotera said international customers are increasingly signalling that they will only source tobacco from countries that demonstrate strong sustainability credentials, making it imperative for Zimbabwe to improve its sustainability index to remain competitive.

As production expands, he said, the focus will be on ensuring that growth is matched by responsible environmental management, sustainable curing methods, strict adherence to labour standards, and compliance with global ESG benchmarks.

He added that market and trade development remains a key pillar of the strategy, with authorities seeking to expand and consolidate export markets to absorb increasing volumes of tobacco output.

Zimbabwe’s tobacco industry is one of the country’s top foreign currency earners, making ESG alignment not just a compliance issue but a strategic economic imperative.