Online Reporter
Theseus Shambare
Local financing has emerged as the backbone of Zimbabwe’s tobacco industry, accounting for 67 percent of total funding during the 2024 –2025 season, a shift that signals growing domestic confidence in a sector Government aims to grow into a US$7 billion industry by 2030.
During the season, locally sourced funding reached about US$663 million, more than double the US$330 million mobilised from offshore financiers, bringing total sector financing to approximately US$993 million.
The increasing reliance on domestic capital marks a significant structural shift, reducing exposure to external shocks while strengthening sustainability and farmer confidence.
The milestone comes as the tobacco industry continues to post strong production gains.
Zimbabwe produced 355 million kilogrammes of tobacco in the 2024–2025 season, surpassing the 300 million kilogramme target set under the National Development Strategy One (NDS1).
In an interview, Lands, Agriculture, Fisheries, Water and Rural Development Permanent Secretary, Professor Obert Jiri, said the localisation of financing reflects the success of Government reforms designed to stabilise the sector and empower farmers.
“During NDS1, Zimbabwe not only surpassed production targets but also significantly increased the localisation of tobacco financing,” said Prof Jiri.
“Under NDS2 and the forthcoming Tobacco Value Chain Transformation Plan Two, we are confident the sector will reach 500 million kilogrammes and a gross value of US$1.2 billion by 2030, while contributing meaningfully to employment creation and national development.”
Under the National Development Strategy 2 (NDS2), Government is targeting the production of 500 million kilogrammes of tobacco from 89 667 contracted growers cultivating about 164 536 hectares, pointing to another anticipated record output.
Prof Jiri said the contract farming model, which now accounts for more than 80 percent of tobacco production, has been central to expanding local financing.
Through this model, farmers receive inputs such as seed, fertiliser and chemicals, as well as technical support and guaranteed markets, with repayment structured around crop deliveries at marketing time.
Local banks, concessional financing facilities and the TianZe tobacco financing model, established under Zimbabwe–China bilateral cooperation, have become key enablers of this system.
These arrangements provide low-interest funding, input support and access to export markets, helping farmers reduce production risks, while improving yields and quality.
Beyond financing, strengthened research and innovation are also anchoring sector growth.
Prof Jiri said Kutsaga Research remains pivotal in developing high-yielding, drought – tolerant and disease – resistant tobacco varieties suited to changing climatic conditions.
Kutsaga Research chief executive officer, Dr Frank Magama, said some of the newly released varieties have the potential to deliver significant productivity gains.
“Our drought-tolerant varieties such as T79, T80 and T81 can produce more than 2 500 kilogrammes per hectare even under dry conditions,” said Dr Magama.
“With optimal agronomic practices, varieties such as T76, KRK70 and KRK73 can yield up to 5 000 kilogrammes per hectare, helping farmers mitigate climate challenges and improve productivity.”
Farmer organisations have welcomed the increasing localisation of financing, saying it enhances stability and predictability across the value chain.
Commercial Farmers union president, Dr Shadreck Makombe, said the emphasis on local funding and contract farming was strengthening farmer confidence and improving productivity.
“The focus on local financing gives farmers security and improves productivity. We are confident the tobacco sector is headed for another strong season,” he said.
Zimbabwe National Farmers’ union president, Mrs Monica Chinamasa, said the financing reforms are positioning smallholder farmers to manage climate risks while maintaining leaf quality.
Meanwhile, the first-round tobacco crop assessment has been completed, with most irrigated farmers already harvesting, while rain-fed producers have also started reaping.
The tobacco marketing season is expected opened in March according Tobacco Industry and Marketing Board.
