Mthuli buoyant
…as Govt eye US$7bn tobacco industry by 2030
CLOUDINE MATOLA
Government has expressed confidence in achieving a US$7bn tobacco industry by 2030 following the launch of the Tobacco Value Chain Transformation Plan Two (TVCTP 2), Business Times can report.
Speaking on the sidelines of the 2026 tobacco marketing season opener, Finance Minister Professor Mthuli Ncube said Zimbabwe’s track record in agricultural milestones makes the target attainable.
“As an economy, we have consistently met our targets, and agriculture is no exception. The US$7 billion goal by 2030 is achievable. We will reach it. We have shown ambition and delivered results. If you look at where we were in 2017 compared to today, the transformation in output is clear. There is no reason we will not get there,” Professor Ncube said.
He highlighted that tobacco production is expected to rise to 400 million kilograms (kg) from the 355 million kg achieved in 2025.
“This year, Zimbabwe is likely to hit production levels of around 400 million kg. In periods of high supply, quality becomes the strongest differentiator. In 2025, production stood at 355 million kg, an 88% increase from the 189 million kg recorded in 2017 at the start of the Second Republic,” he noted.
Professor Ncube added that the government’s focus is not just on increasing volumes but also on local processing, internal financing, and meeting global sustainability standards.
“Building on this foundation, we have developed the Tobacco Value Chain Transformation Plan 2, a comprehensive five-year strategy covering 2026 to 2030. The overarching goal of TVCTP 2 is to build a US$7 billion tobacco industry anchored on productivity, sustainability, innovation, value addition, and market competitiveness,” he said.
The plan is structured around seven strategic pillars, including scaling production from 355 million kg to 500 million kg by 2030 through climate-smart agriculture, irrigation, and mechanisation,increasing localisation to cover 70% of production costs to retain more value locally, raising local processing of cut rag, cigarettes, and other tobacco products from 11% to 30%,diversifying export markets under the African Continental Free Trade Area, strengthening trade surveillance, and developing a premium Zimbabwean tobacco brand with export earnings of US$1.6bn and research and innovation: Focusing on high-yield, climate-resilient varieties and sustainable curing technologies.
The government also plan to review legislation and improving multi-stakeholder coordination and scaling Environmental, Social and Governance adherence from 20% to 50% through afforestation, eradication of child labour, and implementing end-to-end digital traceability systems.
He also welcomed the return of international buyer Philip Morris International, which he said will reinforce confidence in Zimbabwe’s systems and quality.
“We are encouraged by Zimbabwe’s designation as an opportunity market by Philip Morris International and proudly welcome its return. This signals renewed confidence in our quality and long-term trajectory. Our objective is not merely to grow volumes, but to deepen value, enhance standards, and strengthen long-term partnerships,” Professor Ncube said.
Meanwhile, the 2026 marketing season commenced on a high note, with the first bale selling for US$4.60 per kg.
