Online Reporter
Edgar Vhera
Specialist Writer – Agribusiness
AS the National Development Strategy 1 (NDS 1) comes to a close this year, its successor, NDS 2, is targeting to increase tobacco value addition from 2 to 30 percent, as well as optimise stakeholders’ earnings.
The NDS1 (2021-2025) under the Food and Nutrition Security Sector Development Results Framework targeted to increase tobacco production from baseline value of 154 926 tonnes in 2020 to 300 000 tonnes by 2025.
Statistics from the Tobacco Industry and Marketing Board (TIMB) show that the country exceeded production for five of the six years, with the 2024 production affected by the El Niño-induced drought.
The NDS 2 Tobacco Value Chain Transformation Plan (TVCTP) targets increasing both the output and economic value of the crop through value-added local processing.
“Investment in tobacco value addition aligns with Vision 2030 aspirations of transitioning from exporting raw materials to producing value-added goods, transforming Zimbabwe’s potential in tobacco manufacturing and positioning the country as an exporter of high-value finished products.
“Investment initiatives under the Tobacco Special Economic Zone (TSEZ) target launch of nicotine extraction processing plants that convert tobacco waste into nicotine and organic fertilisers, raising value addition from two to over 30 percent,” read the NDS 2 blueprint.
The upgrading of tobacco processing plants to enhance domestic production of value-added tobacco products and finished cigarettes will mark a significant milestone in Zimbabwe’s industrial transformation and economic development.
The on-going resurgence of investment into value chains is testament to Government’s pro-business reforms and commitment to industrial transformation, demonstrating that Zimbabwe is open for business.
Recently, President Mnangagwa commissioned a US$102 million integrated tobacco processing facility by Cut Rag Processors (CRP), a major feat in the country’s quest for value addition to maximise earnings from tobacco.
The new plant can process three million kilogrammes of cut rag for export monthly and produce 60 000 cigarette master cases, businessman and owner of CRP, Mr Simon Rudland disclosed.
NDS 2 initiatives underwriting state-of-the-art value addition cigarette manufacturing plants will create new employment opportunities in processing, packaging, logistics and engineering – contributing to the country’s overall economic growth and development.
“This will build on Zimbabwe’s achievement of a record-breaking 355 million kilogrammes of tobacco production in 2025, valued at US$1,2 billion, solidifying the country’s position as the world’s sixth-largest producer.
“The tobacco sector already accounts for over 25 percent of Zimbabwe’s foreign currency earnings,” according to the NDS 2.
The land reform of year 2000 has seen indigenous farmers growing the once elite crop, with over three million people economically empowered to depend on the industry for their livelihoods.
Interventions during NDS 2 will focus on increasing the share of domestic financing of the tobacco crop to retain more value locally.
Lands, Agriculture, Fisheries, Water and Rural Development Minister, Dr Anxious Masuka, said one of the tenets of the TVCTP was the increase in value addition and beneficiation from two to 30 percent.
He was speaking at Kutsaga’s 75th anniversary research symposium in Harare recently
“Sadly, we are off track on this as we are getting a meagre US$1,5 billion against a possible US$60 billion from cigarettes, but we have engaged various jurisdictions to assist in this regard.
“We have also missed the US$5 billion industry this year, but as we review the TVCTP, we will look at lessons learnt to come up with practical solutions,” he added.
Speaking during the Zimbabwe-European union (EU) business forum, Lands, Agriculture, Fisheries, Water and Rural Development Deputy Minister, Vangelis Haritatos, said the country had to move from exporting low-priced raw agricultural commodities to high-value finished products.
“Zimbabwe grows some of the best tobacco in the world, yet we mainly export it raw,” he said.
Raw tobacco exports account for 92 percent of the earnings, with cigarettes on seven percent.
While Zimbabwe’s average tobacco price is US$5, 75 per kilogramme (US$0, 06 per gramme), premium cigars such as Cohiba Behike get a high price of US$100 or more per 10 to 15 grammes sticks.
So, while Zimbabwe is getting about six United States cents per gramme, it could get a high price of US$10 on the premium cigar from the same gramme.
