Tobacco export revenues surge 13% to US$1.3bn

LIVINGSTONE MARUFU

Zimbabwe’s tobacco export earnings jumped 13% to US$1.3bn by the end of December 2024, up from US$1.23bn in the same period the previous year, driven by firming global prices and rising demand.

This marks the second consecutive year that the country’s tobacco exports have exceeded the US$1bn threshold.

The global shortage of tobacco, exacerbated by El Niño-induced droughts, has created heightened demand and pushed prices higher.

Chelesani Tsarwe, Public Affairs Officer at the Tobacco Industry and Marketing Board (TIMB), attributed the surge to the unique flavor of Zimbabwe’s flue-cured tobacco, which remains in high demand globally.

“As of December 27, a total of 243,356,791 kilograms of tobacco valued at US$1,389,185,982 had been exported, compared to 235,431,092 kilograms worth US$1,232,112,788 during the same period last year,” Tsarwe reported.

The bulk of Zimbabwe’s tobacco exports are destined for Far Eastern markets, including China and South Korea, followed by Middle Eastern countries such as Iran. In total, Zimbabwe’s tobacco was shipped to over 52 destinations worldwide.

Rising tobacco prices have spurred increased interest among farmers, with seed sales surging 30% this year. Predictions of normal to above-normal rainfall for the 2024/25 cropping season have further boosted optimism.

According to TIMB data, 95,375 growers had registered by late 2023, compared to 69,640 during the same period in the previous year. Tsarwe noted that most farmers registered early to meet the deadline and mitigate side marketing issues.

Registration, mandated by the Tobacco Industry and Marketing Levy Act, is critical for both compliance and planning. Under Sub-section 25 of the Act (Chapter 18:20), unregistered growers face fines, imprisonment, or both.

“Registration provides vital statistical information about the number of growers and expected crop output,” Tsarwe explained. “