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Edgar Vhera-Agriculture Specialist Writer
CIGARETTE exports jumped 70 percent to US$47 million in the first half of this year up from US$27 million during the corresponding period in 2022, statistics released by the Zimbabwe National Statistics Agency (ZimStats) have revealed.
The statistics indicated that cigarette exports rose from US$27 422 016 in the first half of 2022 to US$46 659 900 in 2023.
The country’s whole tobacco product grouping export earnings rose 19 percent from US$378 million over the period January to June 2022 to US$450 million over the same period this year.
The country exports partly or wholly stemmed/stripped or not stemmed/stripped tobacco, tobacco refuse, cigars, cheroots and cigarillos tobacco, cigarettes and manufactured tobacco.
In a show of acceptance of the Government’s call to increase value addition as stated in the Tobacco Value Chain Transformation Plan (TVCTP), the portion of tobacco product exports accounted for by partly or wholly stemmed/stripped tobacco decreased from 91 percent in 2022 to 88 percent this year.
This was simultaneously accompanied by a three percent increase in the portion of export of cigarettes containing tobacco from seven percent last year to 10 this year.
Presenting the mid-term monetary policy statement last week, Reserve Bank of Zimbabwe (RBZ) governor Dr John Mangudya said the country’s agricultural exports increased by 15, 9 percent from US$399, 9 million in the first half of 2022 to US$463, 5 million in 2023 during the period under review, driven by tobacco exports.
The Governor also said manufactured exports increased by 7, 6 percent from US$180, 6 million recorded in the first half of 2022 to US$193, 84 million in the corresponding half in 2023, largely driven by rising tobacco cigarette exports.
Tobacco Farmers Union Trust (TFUT) president Mr Victor Mariranyika said the increase in value added tobacco products export was a welcome achievement.
“We encourage exporters to increase value addition of our raw tobacco from the low figure of two percent until as a country we reach 30 percent. Though this increase may not have an immediate impact on the farmer, it is a positive step in the right direction. Opening up of export markets will eventually benefit farmers and sustain growth of the industry,” said Mr Mariranyika.
Zimbabwe Tobacco Growers Association (ZTGA) chairman Mr George Seremwe said if the country maintains this trajectory, then the benefits will finally improve farmers’ livelihoods and the economy at large.
“We are seeing participation of all stakeholders in the tobacco value chain to increase export earnings. Our clarion call is for the benefits to cascade down to farmers for improved livelihoods and sustainability of production of the crop,” said ZTGA chair.
Mr Seremwe said there was need for the country to eventually come up with a roadmap outlining that from a certain point in time, for example, in five years’ time – all tobacco produced in Zimbabwe must not be exported in raw but processed state.
The Government crafted the TVCTP in 2021 that targets to achieve a US$5 billion tobacco industry by 2025 with value addition of tobacco coming to the fore.
The TVCTP seeks to secure the future of the industry and consolidate the important role of the tobacco value chain to agriculture and the
economy through increasing tobacco value addition and beneficiation from the current two to 30 percent by 2025 among others.
Online Reporter