Online Reporter
Martin Kadzere
LOCAL tobacco company, Ethical Holdings, will start producing cigarettes under a tolling arrangement with a Chinese firm, in a development that will foster local beneficiation and optimise export earnings from the golden leaf, an official has said.
The move aligns with the Government’s Tobacco Value Chain Transformation Plan, which shifts the focus from raw leaf exports towards high-value local manufacturing.
The tobacco industry is a cornerstone of Zimbabwe’s economy, as the largest producer in Africa and the fourth largest globally.
It is also a significant source of foreign currency, the second largest after gold, and a critical employer, given that 80 percent of the primary producers are smallholder farmers who benefited from the Government’s land reform programme.
While many companies are involved in farming and leaf processing, British American Tobacco and Pacific Cigarette Company are the main entities producing finished cigarettes for the local market.
Ethical, already a prominent player in the sector, operates an extensive tobacco contract scheme and has recently consolidated its vertical integration. This follows licensing by the Tobacco Industry and Marketing Board (TIMB) to operate its own auction floor, the Ethical Sales Floor (ESF), in Harare.
Under the toll manufacturing arrangement, the company will produce 8 million sticks per month.
Zimbabwe has a capacity for 17 billion sticks annually, according to TIMB.
The production of the cigarettes marks the company’s transition into a fully integrated tobacco house, controlling the entire pipeline from primary production and auctioning to final value-added manufacturing.
Ethical Holdings general manager, Mr Tendai Ngongoni, confirmed the company would soon debut the cigarettes as part of its commitment to national beneficiation goals.
“In terms of driving value addition and beneficiation, we will start producing cigarettes very soon to support the Government’s Tobacco Value Transformation Plan,” Mr Ngongoni said.
He was speaking during a sideline interview following an inspection tour of the auction floor by Deputy Minister of Lands, Agriculture, Fisheries, Water and Rural Development Vangelis Peter Haritatos ahead of the start of the 2026 tobacco selling season on Wednesday.
Zimbabwe is targeting an ambitious tobacco production of 400 million kilogrammes for the 2026 marketing season, aiming to surpass the 2025 record of 355 million kg.
