Online Reporter
Business Reporter
ZIMBABWE’s 2025 tobacco selling season is set to begin on March 5, with industry players projecting a harvest between 280 and 300 million kilogrammes.
This “conservative” estimate could be surpassed following the favourable rainfall received across the country since the start of the year, according to industry projections.
In 2023, Zimbabwe achieved a record 297 million kg, just shy of the 300 million kg target set by the country’s tobacco transformation plan.
However, drought conditions subsequently led to a decline in output to 231 million kg per year.
Despite the El Nino-induced drought, the worst that the country experienced in more than 40 years, tobacco outperformed most other crops, including the typically drought-resistant cotton.
As the country prepares for another potentially successful season, industry players have commended the Tobacco Industry and Marketing Board (TIMB), the industry regulator, for the positive changes implemented in recent seasons, resulting in a more orderly and stable tobacco industry.
“We have seen a real difference from the TIMB in the last two or three seasons,” said Mr Edward Dune, vice president of the Tobacco Farmers Union Trust.
“They are finally enforcing the rules, which is something they were not doing before. We really appreciate TIMB taking this seriously.
Last year, Lands, Agriculture, Fisheries, Water and Rural Development permanent secretary, Professor Obert Jiri applauded TIMB for improving the regulatory environment.
“This industry is very well regulated . . . in fact, it is (one of) the best in the world . . . we don’t want to disrupt it,” he said.
The tobacco industry has become a beacon of the success of Zimbabwe’s land reform and empowerment programmes, demonstrating remarkable resilience and growth.
With over 150 000 small-scale farmers now participating in growing the crop, the sector has undergone a dramatic transformation from its previous state of domination by a few white farmers, marking a significant turn in the redistribution of wealth.
While this transformation represents progress, it has not been without its challenges. Limited robust regulatory enforcement in the recent past had allowed some undesirable practices to fester, most notably side marketing and delayed payments to farmers.
Such challenges were, however, to be expected considering the scale of the evolution that has happened since 2000, when the sector was white farmer-dominated.
Tobacco farming, previously perceived as challenging enterprise, represented a significant learning curve for farmers.
Furthermore, establishing effective regulatory oversight proved difficult during the evolution since the land reform started at the turn of the millennium.
The land reform programme resulted in the rapid growth of contract farming, compounding the challenges. Banks, wary of lending to farmers without collateral, made self-financing difficult, giving contract farming significant impetus.
Contract farming, brought about a dual marketing system (contract and auction sales), which significantly increased the complexity of the regulatory landscape.
This was further exacerbated by the decentralisation of tobacco marketing, which replaced the previous centralised marketing arrangements in Harare, with several contract floors sprouting nationwide.
Analysts have noted that despite previous shortcomings in regulatory enforcement, even with legal instruments in place, the past few years have seen significant improvements.
Dr Kingstone Mujeyi, a senior lecturer of agribusiness in the Department of Agricultural Business Development and Economics at the University of Zimbabwe, observed that the industry has experienced increased stability and orderliness.
“The regulator has demonstrably strengthened its enforcement of compliance frameworks,” said Dr Mujeyi.
“While further improvements are needed, this progress deserves recognition. For the upcoming season, we hope the current orderliness will be maintained, benefiting both previously disadvantaged farmers and genuine financiers.
An official with a local merchant said the low compliance levels of the past unfairly benefited a few companies, but causing others to close.
They expressed hope that the current stable situation will continue for the sector’s long-term health.
“Previously, low compliance levels benefited selected companies, even forcing others to close,” said the official.
“We are hopeful that the current stability will continue for the sector’s sustainability.”
Mr Dune said the tobacco industry’s success, amid growing interest from and participation by investors, particularly local players, demonstrated the benefits of effective governance of the sector.
With the tobacco transformation plan targeting 300 million kgs in production this year, along with ambitious goals to increase beneficiation to 30 percent and enhance value addition, maintaining the current high standards of management and oversight is crucial, industry players say.
In the past few years, the TIMB made significant achievements aimed at boosting tobacco production, improving market transparency, and enhancing farmer livelihoods.
The accomplishments span various aspects of the tobacco value chain, from production and marketing to sustainability and value addition.
One of TIMB’s most notable successes is the country’s record tobacco production of 297 million kg last season attributed to several key initiatives, including the “Simplify and Accelerate Concept,” improved accounting of tobacco stocks, and increased order and compliance within the sector.
TIMB has also reported a 26 percent increase in revenue, driven by efforts to combat corruption and hacking within the stop order system.
Improved information technology systems and cost-containment measures, such as reduced travel and allowance expenses, have contributed to the financial turnaround, operating profit of US$5,5 million in 2024, exceeding the budget of US$3,5 million.
The TIMB has intervened to regularise coal prices, ensuring farmers receive coal at a maximum of US$200 per tonne, depending on their location, a reduction from previous prices as high as US$300.
Furthermore, increased compliance efforts have significantly reduced side marketing, a practice that undermines contract farming agreements, to less than 5 percent.
The TIMB’s focus on fair pricing has also led to a reduction in farmers’ cost of production, as overcharging by contractors, who give farmers inputs, has been addressed.
Simultaneously, the board has ensured stable tobacco prices for farmers, maintaining consistency between US$3,05 and US$3,45 for green leaf over the past two years.
In a move to expand market access and promote Zimbabwean tobacco on the global stage, the TIMB successfully hosted the first World Tobacco Africa event.
The board is also actively engaging with new markets, including Algeria, to create direct export opportunities.
Efforts to curb corruption in licensing have also yielded positive results, eliminating the speculative holding and leasing of licenses.
The board is facilitating local cigarette production, the use of new green threshing machines, and the establishment of nicotine extraction factories for four merchants, aligning with the Government’s vision for value addition and economic growth.
Recognising the importance of sustainability, TIMB has successfully implemented gas curing initiatives, with a model gas curing barn now functional.
The technology offers a more environmentally friendly alternative to traditional curing methods.
