Online Reporter
Nyore Madzianike
Senior Reporter
MULTI-Million cigarette manufacturing company, CUT Rag Processing (CRP), has expressed satisfaction with its growth trajectory following the commissioning of its tobacco processing plant by President Mnangagwa in November last year.
The company said the plant has been performing in line with targets set at the time of commissioning, with operations progressing according to plan despite some challenges associated with starting up a new processing facility.
Located in the Lochinvar industrial area in Harare, the multi-million-dollar tobacco processing plant was commissioned by President Mnangagwa as part of efforts to boost value addition and beneficiation in the tobacco sector.
Since its commissioning, CRP has significantly transformed the tobacco market by enhancing local processing capacity and creating a ready market for growers.
The investment has also strengthened Zimbabwe’s position in the global tobacco value chain.
Despite being ranked the largest producer of tobacco in Africa and one of the best globally, Zimbabwe was realising minimal value from the golden leaf, with nearly 90 percent of the crop being exported semi-processed.
In an interview, the company’s spokesperson, Ms Santana Bruins, said while they were unable to disclose specific production figures for competitive reasons, they are satisfied with the progress made so far.
“We are pleased to report that the plant has been performing in line with the targets we set at the time of commissioning,” she said.
“While we are not in a position to share specific production figures for competitive reasons, we can confirm that operations have progressed as planned.”
Ms Bruins said the initial phase of operations had largely focused on establishing a stable operational rhythm following the commissioning of the facility.
“As with any newly commissioned processing facility, the initial months of operation are largely about building operational rhythm. We are encouraged by the trajectory we have seen,” she said.
The company identified volume growth as its major focus area going forward, describing it as the key driver of the business.
“Our primary focus, and our primary challenge, is volume growth. Growing the volume of tobacco we process is the engine that drives everything else, and this remains the central priority for our leadership and commercial teams,” she said.
CRP said it had managed to achieve the targets it had set at this stage of its development and would continue to build steadily on that foundation.
“We have met the targets we set for ourselves at this stage of our development. We remain focused on building on that foundation steadily and responsibly,” said Ms Bruins.
She added that growth remained central to their long-term vision, with management continuously evaluating opportunities to scale up operations.
“Growth is central to our long-term vision and we are continuously evaluating opportunities to scale our operations.
“CRP was established with ambition, and that ambition has not changed,” she said.
According to the Tobacco Industry Marketing Board (TIMB) it was planning to transform the tobacco value chain into a US$5 billion industry in 2025 through increased production and productivity, localisation of tobacco production financing, value addition and beneficiation and exports of cigarettes to contribute significantly to GDP growth, foreign currency generation, employment creation and raising household incomes.
TIMB indicated that Zimbabwe exported 243,4 million kilograms of tobacco at a value of US$1,4 billion in 2024, with an average export price of US$5,71/kg.
