admin
Edgar Vhera Agriculture Specialist Writer
THE Government has ordered Treasury to release the US$60 million tobacco funding facility approved under the Tobacco Value Chain Transformation Plan (TVCTP) in 2021 and is yet to be utilised.
Vice President General (Rtd) Constantino Chiwenga gave the directive when he officially opened the 2023 tobacco marketing season in Harare yesterday.
The first bale to be auctioned fetched US$4, 35 per kilogramme, which incidentally was the highest price of the day.
VP Chiwenga said the tobacco seed fund should be disbursed for use in the 2023/24 agriculture season.
“As you might be aware, the Government has already approved a US$60 million seed for localising tobacco funding. As we look forward to the 2023/24 tobacco season, I urge Treasury to avail the much-needed seed financing,” he said.
In August 2021, the Government and tobacco stakeholders came up with the TVCTP as part of strategies to achieve a US$5 billion tobacco industry by 2025 supported by localised financing mechanisms, increased production, value addition and beneficiation from the current two to 30 percent.
The TVCTP proposed a US$60 million tobacco revolving fund that was meant to localise tobacco funding starting with an initial target of 50 000 hectares from smallholder farmers with the seed money supposed to be provided by Treasury.
Said VP Chiwenga: “Through the Tobacco Value Chain Transformation Plan, we will build this industry ‘brick by brick and stone upon stone’ to a US$5 billion industry by 2025.
“To achieve Vision 2030, we should accelerate agricultural production, productivity, profitability and growth in line with the National Development Strategy 1 (NDS1).”
VP Chiwenga said Government had responded to farmers’ viability concerns emanating from the increased costs of production and had increased foreign currency retention from 75 to 85 percent.
This increased foreign currency retention percentage will go a long way in cushioning the growers, increasing viability and improving livelihoods.
He bemoaned the fact that the country is exporting 98 percent of its tobacco in semi-processed form, which is not bringing in much in terms of foreign currency earnings.
VP Chiwenga revealed that Tobacco Industry and Marketing Board (TIMB) had licenced Cavendish Lloyd to produce and process Shisha tobacco while tobacco processing concern, Cutrag is in the process of constructing a huge processing plant to accelerate value addition.
The Government has continued to work towards a more an enabling environment for entities interested in value addition and beneficiation of Zimbabwean tobacco in line with its “Zimbabwe is open for business” mantra.
VP Chiwenga, however, noted that the tobacco industry had rebounded significantly since the launch of the land reform programme with the country producing 211 million kilogrammes in 2021 and 212 million kilogrammes in 2022.
“To highlight the success of the land reform, Zimbabwe produced a record 261 million kilogrammes of tobacco in 2019 surpassing the 239 million kilogrammes achieved in 1998,” said Vice President Chiwenga.
Online Reporter